Biodiversity Market News You Need to Know: December 2024

The world of nature finance is buzzing with activity, as new initiatives, partnerships, and regulatory discussions shape the future of biodiversity conservation.
From
UK government policy to breakthroughs in innovative financing models, there’s a lot happening. Here’s a rundown of the key developments you should be aware of.

Credit Markets Face Scrutiny

UK academics are raising concerns about the effectiveness of biodiversity credit markets if they function solely as offsets. They argue that such a model would require excessive regulation to ensure credible gains for nature. This raises important questions about how these markets can truly contribute to conservation goals.

UK Government Gears Up for Nature Market Support

The UK government is being urged to prioritize the development of nature markets. A prominent membership organization representing major corporates and NGOs believes that government intervention as a buyer of last resort is crucial to drive demand and unlock the potential of these markets.

Measuring Biodiversity Gains: New Resources Launched

Access to reliable metrics for measuring biodiversity is essential for the success of any nature-based solution. In a bid to address this need, Bloom Labs and BioInt have collaborated to launch a set of pay-to-access resources on biodiversity credit metrics. These tools can help standardize and enhance the accuracy of biodiversity assessments.

BNG Units: Financing Nature at Scale

In a significant development, a UK sustainability-focused bank has provided its first private sector loan based on biodiversity net gain (BNG) units. This innovative approach could pave the way for scaling up nature-based solutions by integrating BNG principles into financial transactions.

Switzerland: A Hub for Nature Finance

Switzerland is emerging as a center for innovation in nature finance. A Switzerland-based non-profit has established a hub to advance this field, attracting participation from over 60 organizations. This initiative aims to facilitate collaboration, knowledge sharing, and investment in nature conservation projects.

Blended Finance, Government Signals, and Large Transactions: Boosting Action

Financial experts have highlighted several factors that can accelerate action on nature. During a UN Environment Programme Finance Initiative (UNEP FI) event, they emphasized the importance of blended finance, strong government signals, and larger-scale transactions to attract investment and drive impactful conservation efforts.

## Bite-Sized Updates from Around the World

MARKET

Biodiversity bank – Environment Bank has added over 2,000 biodiversity net gain units to the UK’s biodiversity net gain register from 16 sites spanning 340 ha. Its additions now represent more than 40% of the sites register, it said in a press release. “Altogether, our sites have generated more than 5,000 biodiversity units as of December 2024 – and our network is still growing.” (Carbon Pulse)

POLICY

Human rights – The UN Environment Programme (UNEP) released this week a set of guidelines to combat human rights abuses in conservation efforts. The document outlined 10 principles that private conservation organizations should respect within their work, including: respecting the rights of Indigenous Peoples and all groups, exercising due diligence, engaging in good faith consultation with local stakeholders, preventing human rights abuses, and reporting regularly.

Coral restoration

Coral restoration – Singapore has launched its largest coral restoration project to date, planning to plant 100,000 corals in national waters over the next decade, Bernama news agency reported. Dubbed the 100k Corals Initiative and backed by S$2 mln ($1.5 mln) in funding, the project is led by Singapore’s National Parks Board (NParks) in collaboration with the St John’s Island National Marine Laboratory. Under the initiative, NParks also plans to establish a new coral culture facility on St John’s Island.

Bird power

Bird power – Greece’s environmental ministry has revoked the licenses for three wind power projects in the region of Thrace following an appeal by environmentalists to protect birds, Balkan Energy News has reported. Environmental impact assessments for the wind farms were not based on the most relevant data, as required by law, failing to account for the consequences of the 2023 wildfires, groups including WWF Greece said. The activists expect the government to suspend more licences of wind farms in burned areas.

Chipping in

Chipping in – Germany has announced it will ringfence €9.5 mln to help Bangladesh advance biodiversity restoration and climate adaptation efforts across the country, the Daily Star reported. The funding will support two separate initiatives aimed at supporting the restoration of coastal ecosystems in the Sunderbans mangrove forest as well as fostering sustainable urban development.

SCIENCE & TECH

Community impact – The Nature Tech Collective members monitored over 43 mln ha – an area almost the size of California, deployed more than 1,700 biodiversity monitoring devices, and raised $95 mln in funding in 2024, it said in a community impact report. The group is composed of 189 representatives from the public and private sector, academics, project developers, and tech. The report marks the group’s first year since it evolved from the MRV Collective.

Long live the monarchs – The US Fish and Wildlife Service announced this week its plan to extend federal protections to monarch butterflies, largely considered at risk by conservationists due to the climate crisis. The species is set to be added to the list of threatened species by the end of 2025, according to local media. “The iconic monarch butterfly is cherished across the US, captivating children and adults throughout its fascinating life cycle,” said Martha Williams, director of the US Fish and Wildlife Service.

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