Biodiversity banking

Market-based system for biodiversity offsetting

Biodiversity banking, also known as biodiversity trading, conservation banking, mitigation banking, habitat banking, compensatory habitat, or set-asides, describes a market-based framework for biodiversity offsetting where offsets can be traded in the form of credits to offset negative environmental impacts of development projects or activities. This involves biodiversity banks, areas with biodiversity value. On the site of a biodiversity bank, conservation activities may be carried out to preserve, restore, enhance, or conserve biodiversity. The outcomes of projects carried out at biodiversity banks are valued in the form of credits, which can be purchased as a way to offset unavoidable adverse environmental impacts, often with the aim of achieving no net loss of biodiversity.

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