Biodiversity credits are increasingly being promoted as an innovative tool for closing the biodiversity finance gap. A growing number of providers are offering biodiversity credits, either linked to carbon credits or as a new asset class in their own right. However, there are also warnings that they could become a double-edged sword for conservation and distract governments from their financial responsibilities agreed in the Global Biodiversity Framework. Biodiversity credits differ from other environmental policy instruments in that they offer a non-offsetting way of financing conservation and restoration activities. Well-designed credit schemes can therefore make a significant contribution to real net biodiversity gains. But to realize their full potential, biodiversity credits need to be based on a common methodology, broaden their focus to include marine areas, and respect the rights of local and Indigenous communities. Benefit sharing and embedding in regulatory approaches will be critical to their success.

No net loss approaches to environmental policy claim that policy should maintain aggregate levels of natural capital. Substitutability between natural assets allows losses in some assets to be compensated for by gains in others while maintaining overall levels of natural capital. This paper argues that significant goods that matter to people’s well-being will be lost through a policy of no net loss. The concepts of natural capital and ecosystem services that underpin the no net loss approach to environmental policy cannot capture important dimensions of value that are central to human well-being.

Biodiversity offsetting involves the balancing of biodiversity loss in one place (and at one time) by an equivalent biodiversity gain elsewhere (an outcome referred to as No Net Loss). The conservation science literature has chiefly addressed the extent to which biodiversity offsets can serve as a conservation tool, focusing on the technical challenges of its implementation. However, offsetting has more profound implications than this technical approach suggests. In this paper we introduce the concept of policy frames, and use it to identify four ways in which non-human nature and its conservation are reframed by offsetting. Firstly, offsetting reframes nature in terms of isolated biodiversity units that can be simply defined, measured and exchanged across time and space to achieve equivalence between ecological losses and gains. Secondly, it reframes biodiversity as lacking locational specificity, ignoring broader dimensions of place and deepening a nature–culture and nature–society divide. Thirdly, it reframes conservation as an exchange of credits implying that the value of non-human nature can be set by price. Fourthly, it ties conservation to land development and economic growth, foreshadowing and bypassing an oppositional position. We conclude that by presenting offsetting as a technical issue, the problem of biodiversity loss due to development is depoliticized. As a result the possibility of opposing and challenging environmental destruction is foreclosed, and a dystopian future of continued biodiversity loss is presented as the only alternative.

Climate change is a global environmental problem which has been addressed primarily at the multilateral level. However, national, supranational, and even subnational action on the issue has also sprung up. At the subnational level, California (United States) and Acre (Brazil) offer an interesting example of how domestic policies may be linked in order to address climate change. Based on a memorandum of understanding concluded in 2010, these two states have been working towards the possible linkage of their respective climate change policies, in essence providing a pathway for using emissions offset credits that are generated in Acre through reductions of forest-based emissions in the Californian cap-and-trade programme. Taking into account that this is an ongoing process, this commentary provides a general overview of the issue from the perspective of international law.

Biodiversity offsets are an increasingly popular yet controversial tool in conservation. Their popularity lies in their potential to meet the objectives of biodiversity conservation and of economic development in tandem; the controversy lies in the need to accept ecological losses in return for uncertain gains. The offsetting approach is being widely adopted, even though its methodologies and the overriding conceptual framework are still under development. This review of biodiversity offsetting evaluates implementation to date and synthesizes outstanding theoretical and practical problems. We begin by outlining the criteria that make biodiversity offsets unique and then explore the suite of conceptual challenges arising from these criteria and indicate potential design solutions. We find that biodiversity offset schemes have been inconsistent in meeting conservation objectives because of the challenge of ensuring full compliance and effective monitoring and because of conceptual flaws in the approach itself. Evidence to support this conclusion comes primarily from developed countries, although offsets are increasingly being implemented in the developing world. We are at a critical stage: biodiversity offsets risk becoming responses to immediate development and conservation needs without an overriding conceptual framework to provide guidance and evaluation criteria. We clarify the meaning of the term biodiversity offset and propose a framework that integrates the consideration of theoretical and practical challenges in the offset process. We also propose a research agenda for specific topics around metrics, baselines and uncertainty.