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This equivalence can involve the same kind
of habitat or species (like-for-like) or different kinds of
habitats and species of equal or higher importance or
value.
offsets can focus on protecting habitats at risk of loss
or degradation (i.e. risk aversion offsets) or restoring
previously damaged or destroyed habitats. The example
in Figure 7.1 shows how a habitat can be subject
to ongoing measurable losses due to cumulative impacts,
which can be extrapolated to an anticipated
baseline rate of loss. If a development project protects
a larger proportion of equivalent habitat than it
destroys, it can provide an ‘offset benefit’ by reducing
the rate of loss in comparison to the baseline.
Restoration may provide an additional more tangible
benefit, leading to a no net loss situation.
(see definition in Box 7.5 above). offsets
on their own involve actions that arise from (but
do not always occur in) a sequential logic: planning
of a project or activity; identification of likely residual
damage; biodiversity offset for residual damage.
Banking allows these actions to take place without
prior connection – and thus in any order. The biodiversity
credit can be made before the scale of the debit
has been assessed and be stored until it is needed to
compensate for a project causing damage.
Banking gives rise to credits that were not created in
response to specific (occurred, happening or planned)
debits and are thus influenced by past and future conditions
(e.g. demand for compensation). Biodiversity banking
therefore offers features of supply and demand over
time, including speculation and discounting of values.
Biodiversity banks have the
that have managed to mobilise private funds.
Banks and trusts are keen to invest and support this
type of activity, especially when markets that allow for
credit trading are also created. The financial sector has
seen the opportunities for further business creation
and development of another ‘green’ investment product
that can be targeted to this niche market. however,
many banking and offset schemes are expensive
and can entail high up-front and long-term investment.
The involvement of public or financial stakeholders is
sometimes needed to provide support for complicated
and large scale projects.
TEEB FoR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 7: PAGE 12