An initiative to generate biodiversity credits across more than 300,000 hectares in Uganda and Zambia has been speaking with authorities about creating enabling policy, Carbon Pulse has learned.

The Biocredit Investment Operations (BIO) programme is halfway through its three-year scheme, supported by the UK government’s environmental department, to fund nature restoration. It is seeking to launch more pilots in other countries.

One pilot in northeastern Zambia is looking to generate biodiversity credits initially from about 45,000 ha in a core area, before expanding up to approximately 300,000 ha, said Simon Morgan, chief biodiversity officer and co-founder of ValueNature.

The several connected protected areas are comprised of wetlands, lakes, grasslands, and woodlands. Once famed for its large herds, poaching pressures have led to significant wildlife declines, according to the BIO annual report.

“The project will roll out in phases, so we imagine that initially we will start detecting impacts within the core operating area of the project, and, as the project progresses, will see this roll out to the entire area,” Morgan told Carbon Pulse.

Pilot area in North-eastern Zambia, 2022. Credit: Shem Compion

Near Hoima, Uganda another pilot is targeting restoring 12,500 ha, generating biodiversity credits stacked with carbon credits, said Pauline Nantongo Kalunda, executive director of non-profit Environmental Conservation Trust of Uganda (Ecotrust).

The area has lost its dense tropical forests, which are crucial for the survival of species of chimpanzees.

The two initiatives are trialling different biodiversity credit methodologies to avoid putting all their eggs in one basket, said Paul Steele, chief economist at BIO-partner International Institute for Environment and Development (IIED).

The Zambian pilot is in discussions with CreditNature about using its methodology, in collaboration with Biometrio.Earth, while the Ugandan initiative is applying Plan Vivo’s framework with engagement from Pivotal.

In July, CreditNature and ValueNature announced they would pool their expertise to streamline their credit products by collaborating on nature uplift methodology.

Pilot area in North-eastern Zambia, 2022. Credit: Shem Compion

BIO received just over £525,000 ($686,000) from the UK government-funded Darwin Initiative spread over three years.

“We’ve applied for another Darwin grant to do work in Kenya, Tanzania, Malaysia, and Nepal … slightly larger projects in line with the increased funds available,” said Steele.

Darwin Initiative Extra grants range from £800,000 to £5 million for initiatives that can demonstrate the potential to scale.

GOVERNMENT CONTACT

A key part of the BIO piloting work has been speaking with the government in Uganda to create a supportive environment for biodiversity credits, said Steele.

Policy is needed to avoid scenarios such as those in Zimbabwe last year for carbon, where the government suggested at one point it would take half of all carbon credit sales, he said.

“The national framework dialogue is underway. In the case of Uganda, it’s been with its National Environmental Management Authority.”

A piapic bird in the Ugandan pilot, 2023. Credit: Ecotrust

The BIO affiliate hopes to agree on legal, tenure, and benefit-sharing issues with the authorities, he said, adding that transparency early on with authorities around how locals would benefit from the credits will help to increase trust.

DEMAND

Demand has been a key obstacle for scaling the nascent voluntary biodiversity credit markets, although several transactions have taken place over the last few months from projects in South America and the UK.

The BIO pilot managers have been reaching out to potential buyers. In Uganda, Ecotrust has carbon credit buyers who are already interested in the biodiversity side of the project. European buyers have expressed interest in Zambia, said Steele.

However, finding buyers before nature improvements have been shown remains a challenge, he said.

In May, a report said the biodiversity credit market was an opportunity to scale investments in Africa that could be sustainable in the long term.

By Thomas Cox – t.cox@carbon-pulse.com

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