A Brazilian startup released on Wednesday the first version of its biodiversity credit methodology for endangered species, predominantly focused on plants, after implementing a two-month trial on a small private land area.

Pale Blue Dot Environmental’s (PBD-E) technical manager, Cezar Neubert Goncalves, told Carbon Pulse the company is waiting to receive some contributions before submitting the document to scientific journals, hoping to get a peer review at year-end.

Under the methodology, a biodiversity credit, defined as a species-specific credit, is dubbed a ‘Brazilian Biodiversity Credit’ (Credito Brasileiro de Biodiversidade, CREDIBBIO).

A unit represents one ‘individual’ of the endangered species, and multiple credits can be issued for an area if there are different species at risk of extinction, Goncalves said.

Endangered species are selected based on the Brazilian Official List of Threatened Species, an inventory that encompasses more than 3,000 species.

The amount of credits generated by each project depends on the number of individuals and the estimated conservation costs calculated on an annual basis.

“Identifying individual plants can be challenging,” the methodology said.

“[For plants,] herbaceous or shrubby species often present difficulties in defining individuals because of their common vegetative reproduction.”

In this context, the methodology distinguishes genets and ramets, with the former consisting of a group of interconnected ramets that share the same genetic makeup.

“In terms of conserving biodiversity, it is ideal to conserve as many genetic individuals (genets) as possible, but depending on the circumstances or the species, conserving individual cloned organisms (ramets) can also be important.”

Under the methodology, project achievements must be verified by an independent third-party.

ANIMALS

The company said the methodology can also be adapted for animal species.

However, according to Goncalves, focusing on plants can allow property owners to treat them as a financial asset, as plants in a specific area may be considered their property under Brazilian law.

Landowners can therefore receive payment on the condition that they adopt measures to protect the plants and prevent any damage.

“Due to legal considerations in Brazil, CREDIBBIO was predominantly designed for plant species but can be adapted for animal species under specific conditions,” the methodology said.

The CREDIBBIO initiative was developed considering the Brazilian context, but it can be adapted for use in other countries.

PRICES

PBD-E piloted the methodology in a rural property of 43 hectares in Bahia, Brazil, where scientists monitored 91 individuals of Cattleya tenuis, an endangered orchid species, through satellite images and field surveys.

The company said it expects to generate the first biodiversity credits within the next three months for a total value of $20,020 per year, with an estimated value of $220 per credit.

“To determine the most suitable values to price biodiversity credits, we conducted a survey seeking information on criteria that could be used, and assessed commodity values through interviews,” the document said.

Source: PBD-E methodology

“[PBD-E uses] parameters that are easily understandable for community members in rural areas, as well as companies and individuals working in agribusiness.”

Currently, processes for determining the value of each biodiversity credit in the world vary widely from project to project, with credits under the UK’s biodiversity net gain (BNG) legislation reaching up to £30,000 ($38,000) each.

Conversely, credits under the UK government-linked voluntary scheme developed by nature tech company Earthly stand at approximately £50 per unit, though the firm said pricing could vary slightly.

Credits generated by Colombia-based Terrasos are currently listed on the Regen Marketplace at around $25, with prices being associated with the management and stewardship costs in the habitat bank El Globo, the company’s CEO and founder Mariana Sarmiento said.

By Giada Ferraglioni – giada@carbon-pulse.com

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