Priorities For Public Investment Related to Voluntary Biodiversity Credit Markets

Abstract

Nascent voluntary biodiversity credit markets (otherwise known as ‘voluntary nature markets’) operate globally and in Aotearoa New Zealand, promising sustained financial support for conservation initiatives from private investors. Voluntary biodiversity credit markets may operate independently of government, but their risks engage core government concerns, including protecting the public interest in a healthy environment. The optimal role of public investment in this context is contested. We suggest three priority areas for public investment: maintaining core conservation spending; investing in underlying spatial and ecological data; and promulgating and implementing regulatory safeguard mechanisms. Investment in avoiding or mitigating risks in market mechanisms should enjoy the same government attention as efforts to promote such mechanisms. Likewise, addressing the risks should be treated as core public infrastructure for any voluntary biodiversity market.