Colombia-based environmental crediting standard Cercarbono on Friday published the final version of its biodiversity protocol that will underpin crediting of 18 eligible activities across a number of ecosystems, though with a number of significant changes since its initial draft.
The Cercarbono Biodiversity Certification Programme Protocol (CBCP) is the first finalised biodiversity crediting framework to be released by one of the major standards, though with several others such as Verra, Plan Vivo, and Gold Standard at various stages in the process of making their own.
The protocol identifies activities and ecosystem types eligible for crediting, and lays out principles and processes for the creation and issuance of Voluntary Biodiversity Credits (VBCs) to Biodiversity Crediting Projects (BCPs).
“This protocol establishes a certification framework for biodiversity credits with a focus on expeditiously implementing biodiversity projects,” the protocol said.
“Its main goal is to offer precise guidelines on procedures, methodologies, and metrics for incorporating a diverse range of activities related to biodiversity conservation.”
“The protocol maintains a flexible approach that avoids being overly prescriptive or regulatory, aiming to bolster the implementation of biodiversity initiatives and enhance the health and resilience of ecosystems,” it said.
Under the framework, VBCs can be awarded to projects falling under 18 types of conservation and restoration activities across terrestrial, freshwater, wetland, marine, urban, and mixed ecosystems.
Included in the list is achieving formalised OECM status and inclusion of protected areas in the IUCN Green List Standard.
CBCP allows for both area-based and non-area based projects, though a crediting calculation approach has only been developed for the former. Developers of the latter type are being asked to propose approaches to their own projects.
VBCs cannot be used for offsetting purposes.
Source: Cercarbono
CHANGES
Cercarbono released a draft version of the protocol for public consultation in December, and following that process it has made a number of instrumental amendments, without identifying or explaining the changes.
The most important changes, in Carbon Pulse’s view, are as follows:
• The formula used to calculate the number of credits has been split into two versions, one for restoration projects and another for conservation and preservation. The former uses a number reflecting the improvement made in the measurable biodiversity indicators selected for the project that runs from 0 (no change) to 1 (maximum upswing). Conservation projects will be using a conservation factor reflecting the value of conserving a hectare of the land involved in the project. The developer chooses the conservation factor, though it must be approved by an Independent Expert Panel (IEP)
• The time component of the crediting formula has been set to a year, instead of two months as in the previous proposal
• Eradication of alien invasive species has been removed from the list of eligible activities, though it is unclear whether this is permanent
• The protocol still rules out projects incorporating living modified organisms, but no longer specifically excludes exotic species in restoration activities
• All eligible projects must be backed by an approved methodology. In the December draft, it was proposed that area-based projects would not necessarily need a methodology as long as they could prove they were in line with the overall framework. Only projects in their first year, when they will earn so-called innovative VBCs (iVBCs), can go ahead without a methodology, but that must be put in place before they transition into the scheme proper
• Crediting periods have been extended to 10 years from five previously, but projects must update their programme compliance every five years. There is no limit on how many times the crediting period can be renewed
• Projects can still get retroactive crediting for five years before the project starts with Cercarbono if they can document achievements. However, the previous version proposed projects involving Indigenous People and local communities could get 10 years’ worth of retroactive crediting, but this has been removed
• Additionality requirements remain roughly the same, though a provision saying that projects that reinvest at least 80% of credit sales revenue in the project would be put on a ‘general positive list’ has been removed
• Cercarbono will retain 5% of issued credits in a ‘Guarantee Buffer’ in case of post-verification issues such as falsified documents or other problems. These will now be non-refundable, whereas the previous version suggested they be returned to the developer at each crediting period renewal. Another 5% will be held in a separate buffer account in case natural disasters or other events outside the developer’s control reverse the project’s achievements. These credits will, as before, be returned to the developer after a decade.
• CBCP will allow stacking of biodiversity credits on top of carbon credits generated at the same plot of land, but now only if the carbon project is registered with Cercarbono. The previous draft would have allowed this for any registered carbon project. There will still be no bundling of carbon and biodiversity credits
• The Independent Expert Panel will now consist of at least four people, compared to six in the previous version
The Cercarbono standard will issue four types of VBCs – platinum to units from projects in the most valuable spots, and then gold, silver, and bronze as the project’s urgency is seen to decrease.
It has now developed a categorisation system using eight different options for how to classify projects: The IUCN Red List of Eco-system categories; Biodiversity hotspots; Irreplaceable biodiversity and irrecoverable carbon; CBD national targets; IUCN Global Ecosystem Typology; UNEP Forest Biodiversity Intactness Index; Ramsar Wetland Classification; and the World Heritage List from UNESCO.
For example, using the CBD national targets system, a project would receive platinum credits if it is located in a 2020-30 deforestation region; gold credits if it is in a 2030-50 deforestation region; silver credits if it is within 5 kilometres of a deforestation region; and bronze if it is within 20 km of such a region.
“The categorisation of biodiversity credits within the CBCP is a valuable tool for prioritising actions and effectively allocating resources to credits with the greatest impact on biodiversity conservation,” the CBCP said.
“By differentiating between levels of prioritisation, the programme can target support towards critical credits and ensure conservation efforts are directed to where they are most needed.”
It noted that this classification system as well as other elements of the framework will be permanently subject to change and improvements as time passes and experiences are gathered.
SUPPORTING PRINCIPLES
Projects seeking registration with CBCP must go through a process that includes stakeholder consultation and third-party validation, and achievements will be subject to a third-party verification process similar to those in the carbon market before any credits are issued and transferred to the registry, which will be hosted by Cercarbono-partner EcoRegistry.
Among the requirements for approval will be a project’s ability to approve it adheres to CBCP’s basic principles:
It must be nature-oriented and generate positive effects on biodiversity targets; be additional; be aligned with local, regional, national, and international policies and priorities; be aligned with long-term outcomes; prioritise on-the-ground actions; use a community-based approach and equitable benefits distribution; ensure transparency; and – for species and ecosystem-level initiatives – have a landscape approach.
One methodology has so far been put out for public consultation under the Cercarbono framework – an indicator species methodology developed by US-based developer Savimbo in cooperation with Indigenous Peoples and local communities in the Colombian Amazon.
The CBCP entered into effect once Cercarbono published it on Friday.
By Stian Reklev – stian@carbon-pulse.com
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