Opportunities
Financial products linking biodiversity and ecosystem services to the market are emerging, offering new financial instruments to price previously unvalued natural capital such as:
- • Wetland credits: The total market value of wetland credits was estimated at nearly $290 million as of April 30, 2005
- • Forestry carbon credits: The World Bank estimates that deforested land in the tropics is worth US$200-500 per hectare as pasture and could be worth from US$1,500-10,000 if left intact and absorbing carbon dioxide
- • Species banking: Individual endangered species such as the Red Cockaded Woodpecker in California can command individual credits ranging from US$150,000 – 250,000
With the role of biodiversity in value generation increasingly understood globally, the finance sector will play a key role creating markets for services that have a scarcity value or support policy goals, such as climate regulation. Business for Social Responsibility and UNEP Finance Initiative recently produced valuable overviews on market opportunities in this area.
