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Green Finance Observatory @greenfinanceobs.bsky.social · Jul 7

In this sense, we understand the politics of biodiversity markets to be like that of carbon offsetting, namely to protect vested interests and the status quo for a few more years, but at the risk of threatening our own survival. 3/3
Our brief greenfinanceobservatory.org/wp-content/u...

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Green Finance Observatory @greenfinanceobs.bsky.social · Jul 7

We note that privatising conservation policies will weaken them by introducing a profitability requirement.
We understand the main objective to be diverting the conversation away from the need to curb biodiversity destruction in EU, as doing so would hurt short-term growth and competitiveness. 2/3

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Green Finance Observatory @greenfinanceobs.bsky.social · Jul 7

EU’s roadmap for #naturecredits confirms the fears we expressed about the leaked version. We understand that #naturecredits will most likely be used as international compliance offsets. 1/3
eur-lex.europa.eu/legal-conten...

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Green Finance Observatory @greenfinanceobs.bsky.social · Jun 4

Will this be financed via redirecting existing harmful subsidies or via offset/credits schemes, as part of the forthcoming EU nature credits? 3/3

Green Finance Observatory @greenfinanceobs.bsky.social · Jun 4

To what extent will this be instrumentalised to allow for more water pollution in the future linked to EU's reindustrialisation strategy and refusal to abandon its anachronic growth maximisation paradigm? 2/3

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Green Finance Observatory @greenfinanceobs.bsky.social · Jun 4

Today's EU session on creating a water smart economy leaves me with open questions; while I support the goal to increase water reuse, including through recovering phosphorus and nitrogen in water, I wonder: 1/3

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Green Finance Observatory @greenfinanceobs.bsky.social · Jun 2

We hope that references in the draft to “water resilience” and restoring “our natural water cycle” do not indicate a willingness to include water pollution offsetting within nature credits. 3/3
See our brief here greenfinanceobservatory.org/wp-content/u...

greenfinanceobservatory.org

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Green Finance Observatory @greenfinanceobs.bsky.social · Jun 2

which is not compatible with the public good nature of most ecosystems and would be a self-defeating strategy.
We understand the reference to a mitigation hierarchy to indicate that nature credits will come after – and thus legitimise – biodiversity offsetting. 2/3

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Green Finance Observatory @greenfinanceobs.bsky.social · Jun 2

EU's draft roadmap on #NatureCredits raises serious concerns and questions. We find that EU’s €37bn biodiversity funding gap could be closed entirely by redirecting existing subsidies to harmful activities, and doesn't require “making nature investable,” 1/3

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Green Finance Observatory @greenfinanceobs.bsky.social · May 26

the inadequate safeguards against conflicts of interest, the lack of legal liability in case of project failure contradict the claim that the credits will have high integrity. See our brief 4/4 greenfinanceobservatory.org/wp-content/u...

greenfinanceobservatory.org

Green Finance Observatory @greenfinanceobs.bsky.social · May 26

We find that the allowance for offsetting, for the ex-ante sale of credits, for secondary market trading, the very weak definition of additionality, the lack of minimum duration of the projects, 3/4

greenfinanceobservatory.org

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Green Finance Observatory @greenfinanceobs.bsky.social · May 26

We find that while the report includes many well-meaning boilerplate statements, many critical concerns remain unaddressed and several features contradict the high integrity claims. 2/4

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Green Finance Observatory @greenfinanceobs.bsky.social · May 26

IAPB/UN/WEF published a week ago their revised and updated high integrity principles to guide the biodiversity credits market. 1/4

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

As for the inclusion in the Common Agricultural Policy, the political goal is arguably to try and have farmers trade unions onboard by promising them hypothetical future revenues, in order to divert their attention from the fact that nature credits will require a LOT of land. 11/11

Green Finance Observatory @greenfinanceobs.bsky.social · May 21

Allowing nature credits to meet EU mandatory restoration targets would thus create compliance biodiversity offsets, thereby contradicting EU Commission's claim to not cover offsets. 10/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

any nature positive/restoration action is measured together with destruction, potentially hiding our failure to curb destruction, and making such actions de facto offsets. 9/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

If credits are allowed to be used to meet mandatory restoration targets within the Nature Restoration Regulation, then you have de facto compliance demand; as the EU biodiversity strategy operates under a Net Gain Principle, 8/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

"as well, they could help frame results-based biodiversity finance in the context of the Nature Restoration Regulation and the Common Agricultural Policy, as well as the certification of biodiversity co-benefits within carbon removals and carbon framing schemes." 7/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

=> Inclusion in the EU hashtag#taxonomy will likely have a less marginal impact, yet as the taxonomy is a voluntary quality label, again it does not seem enough to really scale. Now pay attention, the next sentence is the one that matters: 6/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

"Credits could be used to provide evidence of impact proposed to investors wishing to commit to hashtag#biodiversity conservation, under the green claims directive, the EU taxonomy regulation, and the EU Sustainability Reporting Standards." 5/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

=> The first 2 proposed business cases are likely local uses that go against the principle of fungible tradable credits, These are also all likely marginal uses that won't contribute much to creating a fully fledged market. 4/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

He added that the EU has already identified a number of business cases for nature credits, including investing in nature-related risk reduction, protecting ecosystem services that are critical to corporate operations, improving companies’ sust reporting, and offering nature-positive products." 3/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

DG ENVI "reiterated that the EU market will not cover offsets aimed at compensating for impacts on biodiversity, but only credits or certificates representing positive contributions to nature and ecosystem maintenance. (...) 2/11

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Green Finance Observatory @greenfinanceobs.bsky.social · May 21

EU to launch roadmap for building hashtag#nature markets by year end, still claims that credits won't be used for hashtag#offsetting, despite providing details that suggest the opposite. 1/11
carbon-pulse.com/398453/?utm_...

EU to launch roadmap for building nature markets by year-end « Carbon Pulse

carbon-pulse.com

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Green Finance Observatory @greenfinanceobs.bsky.social · May 20

Note also how what is NOT insured is the environmental outcome of the restoration project. Are such insurance products helping to address the biodiversity crisis, or helping companies with harmful activities continue their business as usual in exchange for claiming to #offset their destruction? 2/2

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