Overview and Status of the Business and Biodiversity Offsets Programme

Abstract

Abstract Biodiversity offsets are measurable conservation outcomes, deliberately achieved to balance any significant biodiversity losses that cannot be countered by avoiding or minimising impacts from the start, or restoring the damage done. They are specifically designed to address the impacts that remain in such a way that the offset can reasonably be predicted, on the basis of our scientific understanding, to result in no net loss of biodiversity from the perspective of relevant stakeholders. Recognising the lack of an international, multistakeholder forum in which to develop shared terminology, increase understanding and share best practice on biodiversity offsets; the lack of practical experience in this field and the lack of guidance on biodiversity offset design (particularly on how to quantify loss and gain of biodiversity and establish the equivalence of offsets to the residual losses caused by projects BBOP was established in 2004. It is nowa collaboration between some 75 organisations: companies, government agencies, conservation organizations and financial institutions from around the world, as well as some independent experts. The aim of BBOP is to develop shared views and experience of best practice in following the mitigation hierarchy and demonstrating ‘no net loss’ or a ‘net gain’ of biodiversity, including through the use of biodiversity offsets.Over its initial four years, the members of BBOP's Advisory Group developed a set of ten principles and methodologies required to support best practice in voluntary biodiversity offsets. They tested these in a series of pilot projects, whilst opening broader consultation with policy makers and other stakeholder groups. This paper covers two significant, recent developments. The first is a major driver for biodiversity offsets and key aspect of access to finance, namely the IFC's revised Performance Standard 6 (PS6), also adopted as of 1 January 2012 by the 73 financial institutions that are members of the Equator Principles Association. PS6 requires clients receiving project finance to demonstrate no net loss of biodiversity, where feasible, for impacts on ‘natural habitat’, and in the case of impacts on ‘critical habitats’, clients must show a net gain. The second, related, development is the Standard on Biodiversity Offsets, also released in January 2012.This was developed by members of the BBOP Secretariat and Advisory Group. Their aim was to help companies and their auditors and investors determine whether international best practice has been followed in avoiding and minimizing impacts on biodiversity, undertaking restoration, and ultimately offsetting any residual impacts in order to demonstrate no net loss, or preferably a net gain, of biodiversity. The standard presents criteria and indicators that build on theBBOP Principles that define best practice in biodiversity offsets. It is accompanied by guidance notes for assessors and a glossary. It is the product of seven years of experimentation and negotiation among over eighty companies, governments, civil society organizations, research groups and financial institutions from around the world, as well as public consultations. The BBOP Standard complements other standards on carbon, and water, and guidelines on alleviation of poverty and helps companies show they meet safeguards established by the World Bank and the International Finance Corporation. BBOP is conducting a range of training programmes for companies, consultants, investors, conservation experts and government representatives and coordinating a ‘Community of Practice’ to enable anyone - whether a BBOP member or not - to share practical experiences, skills and lessons learned on applying the mitigation hierarchy and achieving no net loss. BBOP also plans to collaborate with more individuals and organisations around the world, continually to refine the Standard based on experience and practice, and to learn from a wide range of experiences with biodiversity offsets in a variety of industry sectors and geographical areas. The BBOP Secretariat (served by Forest Trends and the Wildlife Conservation Society) is looking for organizations willing to try using the Standard and offer feedback on its strengths and weaknesses, so it can be improved in subsequent editions. BBOP is a collaborative programme, and welcomes participation and feedback from any interested organisation. To learn more about the programme and how to get involved please: See:http://bbop.forest-trends.org Contact: bbop@forest-trends.org