Biodiversity banking

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Biodiversity banking, also known as biodiversity trading or conservation banking, biodiversity mitigation banks, [1] compensatory habitat, [1] set-asides, [1] biodiversity offsets, [2] are conservation activities that compensate for the loss of biodiversity with the goal of biodiversity maintenance through a framework which allows biodiversity to be reliably measured, and market based solutions applied to improving biodiversity. Biodiversity banking provides a means to place a monetary value on ecosystem services. Typically this involves land protection, restoration, an/or enhancement. Biodiversity banking is often applied so that there is no "net loss of a particular biodiversity feature." [1] According to the International Union for Conservation of Nature, by 2004, interest in voluntary biodiversity offsets was growing in the United States, Brazil, Australia, Canada and the EU. Experience suggested that industry, governments, local communities and conservation groups all benefit from biodiversity offsets or biodiversity banking. [3]

Contents

Terminology

According to the IUCN, "[b]iodiversity offsets are designed to compensate for residual environmental damage caused by development after avoidance, minimization, and mitigation of environmental impacts have been considered and implemented. The goal of offsets is to compensate for the loss of biodiversity at one location with conservation gains elsewhere." [2] :6 [3]

In practice

In practice, biodiversity banks rely on existing governmental laws, which forbid companies or individuals of buying up land in an area that houses, say a critically endangered species. An exception is also in place in this governmental law which allows companies to buy up the land nonetheless, if they also buy a certain amount of compensation credits with a certified biodiversity bank. These credits, which represent a significant extra cost to the company, are then used to provide revenue for the biodiversity bank, but the revenue derived thereof is also used by the bank to buy up conservation area elsewhere for the endangered species. [4]

United States

In the United States a "mitigation banking" process applies to impacts on wetlands. It requires that developers firstly avoid harm to wetlands, but if harm is considered unavoidable, then wetland habitat of similar function and values must be "protected, enhanced or restored" to compensate for those that will be damaged. The process comes under the US Clean Water Act 1972, the US Army Corps of Engineers regulations [5] and the commitment to "no net loss" of wetlands habitat.

Since about 2000, the term "species banking", sometimes called "conservation banking", has applied to impacts on species of special concern, typically those that are listed by state and federal agencies under the U.S. Endangered Species Act or its state-based equivalent. Similar to wetlands banks, conservation banks are designed as compensation for impacts to listed species or their habitat, ensuring a similar no net loss policy for these biodiversity resources. [6] [ citation needed ]

Compensation for impacts to a stream riparian zone may also be required in relation to the linear distance of lost stream functions resulting from stream bank structures (e.g., concrete or rip rap), sedimentation, channelization, dredging or similar activities.

Australia

Two biodiversity banking schemes operating in Australia are the New South Wales BioBanking scheme, [7] which commenced in 2008, and the Victorian Native Vegetation Management Framework scheme. Both schemes apply particularly to developers, where biodiversity values will be reduced through land clearing and building development. The framework requires developers to source biodiversity credits through a market mechanism to offset biodiversity loss.

Listed species, critical habitat, wetlands and stream habitat are all components of biodiversity ecosystem services. Taken collectively, they may be referred to as "biodiversity banks".

Canada

In Alberta, Canada, Alberta Biodiversity Monitoring Institute (ABMI) researchers use the oil sands industry of Alberta as a case study in their paper in which they evaluated the commonly used and costly ecological equivalency-based biodiversity offset in terms of economic and ecological performance with more flexible alternative offset systems. They used ABMI's "empirically derived index of biodiversity intactness to link offsets with losses incurred by development." They evaluated ecologically equivalent areas in regards to vegetation types and regional conservation priorities such as the recovery of the boreal woodland caribou and the Dry Mixedwood natural subregion in the oil sands region. They found that flexible alternative systems like the priority-focused offsetting networks, cost 2-17 times less than the ecological equivalency-based biodiversity offset vegetation cost 2–17 times more than priority-focused networks. [2]

See also

Related Research Articles

<span class="mw-page-title-main">Ecoregion</span> Ecologically and geographically defined area that is smaller than a bioregion

An ecoregion is an ecologically and geographically defined area that is smaller than a bioregion, which in turn is smaller than a biogeographic realm. Ecoregions cover relatively large areas of land or water, and contain characteristic, geographically distinct assemblages of natural communities and species. The biodiversity of flora, fauna and ecosystems that characterise an ecoregion tends to be distinct from that of other ecoregions. In theory, biodiversity or conservation ecoregions are relatively large areas of land or water where the probability of encountering different species and communities at any given point remains relatively constant, within an acceptable range of variation . Ecoregions are also known as "ecozones", although that term may also refer to biogeographic realms.

<span class="mw-page-title-main">Wetland</span> Land area that is permanently, or seasonally saturated with water

Wetlands, or simply a wetland, is a distinct ecosystem that is flooded or saturated by water, either permanently or seasonally. Flooding results in oxygen-free (anoxic) processes prevailing, especially in the soils. The primary factor that distinguishes wetlands from terrestrial land forms or water bodies is the characteristic vegetation of aquatic plants, adapted to the unique anoxic hydric soils. Wetlands are considered among the most biologically diverse of all ecosystems, serving as home to a wide range of plant and animal species. Methods for assessing wetland functions, wetland ecological health, and general wetland condition have been developed for many regions of the world. These methods have contributed to wetland conservation partly by raising public awareness of the functions some wetlands provide. Constructed wetlands are designed and built to treat municipal and industrial wastewater as well as to divert stormwater runoff. Constructed wetlands may also play a role in water-sensitive urban design.

<span class="mw-page-title-main">Habitat conservation</span> Management practice for protecting types of environments

Habitat conservation is a management practice that seeks to conserve, protect and restore habitats and prevent species extinction, fragmentation or reduction in range. It is a priority of many groups that cannot be easily characterized in terms of any one ideology.

Freshwater ecosystems are a subset of Earth's aquatic ecosystems. They include lakes, ponds, rivers, streams, springs, bogs, and wetlands. They can be contrasted with marine ecosystems, which have a larger salt content. Freshwater habitats can be classified by different factors, including temperature, light penetration, nutrients, and vegetation. There are three basic types of freshwater ecosystems: Lentic, lotic and wetlands. Freshwater ecosystems contain 41% of the world's known fish species.

<span class="mw-page-title-main">Land development</span> Landscape alteration

Land development is the alteration of landscape in any number of ways such as:

<span class="mw-page-title-main">Ecosystem service</span> Benefits provided by healthy nature, forests and environmental systems

Ecosystem services are the many and varied benefits to humans provided by the natural environment and healthy ecosystems. Such ecosystems include, for example, agroecosystems, forest ecosystem, grassland ecosystems, and aquatic ecosystems. These ecosystems, functioning in healthy relationships, offer such things as natural pollination of crops, clean air, extreme weather mitigation, and human mental and physical well-being. Collectively, these benefits are becoming known as ecosystem services, and are often integral to the provision of food, the provisioning of clean drinking water, the decomposition of wastes, and the resilience and productivity of food ecosystems.

<span class="mw-page-title-main">Aquatic ecosystem</span> Ecosystem in a body of water

An aquatic ecosystem is an ecosystem found in and around a body of water, in contrast to land-based terrestrial ecosystems. Aquatic ecosystems contain communities of organisms—aquatic life—that are dependent on each other and on their environment. The two main types of aquatic ecosystems are marine ecosystems and freshwater ecosystems. Freshwater ecosystems may be lentic ; lotic ; and wetlands.

Environmental mitigation, compensatory mitigation, or mitigation banking, are terms used primarily by the United States government and the related environmental industry to describe projects or programs intended to offset known impacts to an existing historic or natural resource such as a stream, wetland, endangered species, archeological site, paleontological site or historic structure. To "mitigate" means to make less harsh or hostile. Environmental mitigation is typically a part of an environmental crediting system established by governing bodies which involves allocating debits and credits. Debits occur in situations where a natural resource has been destroyed or severely impaired and credits are given in situations where a natural resource has been deemed to be improved or preserved. Therefore, when an entity such as a business or individual has a "debit" they are required to purchase a "credit". In some cases credits are bought from "mitigation banks" which are large mitigation projects established to provide credit to multiple parties in advance of development when such compensation cannot be achieved at the development site or is not seen as beneficial to the environment. Crediting systems can allow credit to be generated in different ways. For example, in the United States, projects are valued based on what the intentions of the project are which may be to preserve, enhance, restore or create (PERC) a natural resource.

<span class="mw-page-title-main">Biodiversity action plan</span>

A biodiversity action plan (BAP) is an internationally recognized program addressing threatened species and habitats and is designed to protect and restore biological systems. The original impetus for these plans derives from the 1992 Convention on Biological Diversity (CBD). As of 2009, 191 countries have ratified the CBD, but only a fraction of these have developed substantive BAP documents.

Ecosystem Marketplace, an initiative of Forest Trends, is a non-profit organization based in Washington, DC, that focuses on increasing transparency and providing information for ecosystem services and payment schemes.

Mitigation banking is the preservation, enhancement, restoration or creation (PERC) of a wetland, stream, or habitat conservation area which offsets, or compensates for, expected adverse impacts to similar nearby ecosystems. The goal is to replace the exact function and value of specific habitats that would be adversely affected by a proposed activity or project. The public interest is served when enforcement agencies require more habitat as mitigation, often referred to as a mitigation ratio, than is adversely impacted by management or development of nearby acreage.

<span class="mw-page-title-main">Paroo-Darling National Park</span> Protected area in New South Wales, Australia

The Paroo-Darling National Park is a protected national park that is located in the Far West region of New South Wales, in eastern Australia. The 178,053-hectare (439,980-acre) national park spans two distinct regions in the outback area. This region covers the arid catchments of the Paroo River and the Paroo-Darling confluence to the south.

<span class="mw-page-title-main">Riparian-zone restoration</span> Ecological restoration of river banks and floodplains

Riparian-zone restoration is the ecological restoration of riparian-zonehabitats of streams, rivers, springs, lakes, floodplains, and other hydrologic ecologies. A riparian zone or riparian area is the interface between land and a river or stream. Riparian is also the proper nomenclature for one of the fifteen terrestrial biomes of the earth; the habitats of plant and animal communities along the margins and river banks are called riparian vegetation, characterized by aquatic plants and animals that favor them. Riparian zones are significant in ecology, environmental management, and civil engineering because of their role in soil conservation, their habitat biodiversity, and the influence they have on fauna and aquatic ecosystems, including grassland, woodland, wetland or sub-surface features such as water tables. In some regions the terms riparian woodland, riparian forest, riparian buffer zone, or riparian strip are used to characterize a riparian zone.

<span class="mw-page-title-main">Whangamarino Wetland</span> Wetland of international importance under the Ramsar Convention

The Whangamarino Wetland in the Waikato District is the second largest wetland complex of the North Island of New Zealand. Encompassing a total area of more than 7200 hectares, the Department of Conservation Te Papa Atawhai manages 5,923 hectares of peat bog, swamp, mesotrophic lags, open water and river systems listed as a wetland of international importance under the Ramsar Convention. Fish and Game New Zealand are the second largest landowner, managing 748 hectares of the wetland primarily as gamebird hunting habitat.

<span class="mw-page-title-main">Biodiversity offsetting</span>

Biodiversity offsetting is a system used predominantly by planning authorities and developers to fully compensate for biodiversity impacts associated with economic development, through the planning process. In some circumstances, biodiversity offsets are designed to result in an overall biodiversity gain. Offsetting is generally considered the final stage in a mitigation hierarchy, whereby predicted biodiversity impacts must first be avoided, minimised and reversed by developers, before any remaining impacts are offset. The mitigation hierarchy serves to meet the environmental policy principle of "No Net Loss" of biodiversity alongside development.

The Point Cook Coastal Park covers an area of 863 hectares and includes the Cheetham Wetlands. The park extends from the RAAF Williams Point Cook Base northeast along the coast to the Laverton creek which comprises its northern boundary. The park is approximately 20 kilometres (12 mi) from Melbourne, Australia in a southwesterly direction along Port Phillip Bay. The park is adjoined by the Point Cook Marine Sanctuary, which extends around the point to the south and the east. The northwestern boundary to the park is residential housing.

Alberta Biodiversity Monitoring Institute (ABMI) is an agency that monitors and reports on biodiversity status throughout the province of Alberta, Canada, that is funded equally by the government of Alberta and the oil and gas industry. The Alberta Biodiversity Monitoring Institute is based in Edmonton, Alberta. According to Alberta Innovates-Technology Futures (AITF), a key partner in the ABMI, the ABMI, which acts as "an early warning system by monitoring the cumulative effects of biodiversity change in regions throughout Alberta" is "the largest project of its kind ever attempted in Canada." Collaborating agencies include the government-industry research agency Alberta Innovates-Technology Futures, the University of Alberta, University of Calgary and the Royal Alberta Museum. Along with the Alberta Forest Management Planning Standard, the ABMI are key components to implementing resource planning based on ecosystem management principles. Alberta Environment and Parks consults the Alberta Biodiversity Monitoring Agency's reports in monitoring and preservation of species, setting benchmarks for biodiversity for land use plans. If industry contributes to the endangerment of a species that falls below these benchmarks, the Government of Alberta can order remedial action.

<span class="mw-page-title-main">Conservation banking</span>

Conservation banking is an environmental market-based method designed to offset adverse effects, generally, to species of concern, are threatened, or endangered and protected under the United States Endangered Species Act (ESA) through the creation of conservation banks. Conservation banking can be viewed as a method of mitigation that allows permitting agencies to target various natural resources typically of value or concern, and it is generally contemplated as a protection technique to be implemented before the valued resource or species will need to be mitigated. The ESA prohibits the "taking" of fish and wildlife species which are officially listed as endangered or threatened in their populations. However, under section 7(a)(2) for Federal Agencies, and under section 10(a) for private parties, a take may be permissible for unavoidable impacts if there are conservation mitigation measures for the affected species or habitat. Purchasing “credits” through a conservation bank is one such mitigation measure to remedy the loss.

<span class="mw-page-title-main">Bradley Cardinale</span>

Bradley Cardinale is an American ecologist, conservation biologist, academic and researcher. He is Head of the Department of Ecosystem Science and Management and Penn State University.

<span class="mw-page-title-main">Wetlands and wetland policies in Canada</span>

Canadian wetlands account for approximately one quarter of the world's total wetlands and is ranked with the highest surface area of wetlands on the Ramsar Conventions List of Wetlands of International Importance. Canada holds 37 designated areas of International Importance which equates to approximately 13,086,767 hectares of land.

References

  1. 1 2 3 4 Gibbons, Philip; Lindenmayer, David (2007), "Offsets for land clearing: No net loss or the tail wagging the dog?", Ecological Management and Restoration, 8 (1): 26–31, doi: 10.1111/j.1442-8903.2007.00328.x
  2. 1 2 3 Habib, Thomas J.; Farr, Daniel R.; Schneider, Richard R.; Boutin, Stan (2013), "Economic and Ecological Outcomes of Flexible Biodiversity Offset Systems" (PDF), Conservation Biology, 27 (6): 1313–23, doi:10.1111/cobi.12098, PMID   23869724, S2CID   43377681, archived from the original (PDF) on 2015-01-04
  3. 1 2 ten Kate, Kerry; Bishop, J.; Bayon, R. (2004), "Biodiversity offsets, views, experience and the business case" (PDF), International Union for Conservation of Nature, Gland, Switzerland, and Insight Investment, London, ISBN   2-8317-0854-0 , retrieved 4 January 2014
  4. Banking Nature documentary
  5. "Archived copy" (PDF). Archived from the original (PDF) on 2012-04-02. Retrieved 2009-01-21.{{cite web}}: CS1 maint: archived copy as title (link)
  6. Pawliczek, Jamie; Sullivan, Sian (2011), "Conservation and concealment in SpeciesBanking.com, US: an analysis of neoliberal performance in the species offsetting industry." (PDF), Environmental Conservation, 38 (4): 435–444, doi:10.1017/S0376892911000518, S2CID   53476246
  7. Biodiversity Banking and Offsets Scheme (BioBanking) environment.nsw.gov.au

Further reading