We have been working hard to create a way to assess the biodiversity impacts of nature-based carbon projects, and are excited to release the Biodiversity Attention Score on our platform!
It is important to note that for now this is a first step, and that the score should be seen as an early version of a more comprehensive biodiversity impact assessment. We are hoping to attach more layers to the score in the near future. Explorer users of the dashboard will see the data available in the broader geospatial data AlliedOffsets offers on NBS projects.
Countries with a high percentage of 'high attention' biodiversity issuances
The biodiversity attention (BAS) score is created with two components. First, as touched on in our previous blog, we developed a classification of restoration methodologies. This metric showed whether these methodologies had any biodiversity requirements for the projects. Second, following the focus on project design, we developed an AI-powered tool to review the individual project design documents (PDDs).
Collected by AlliedOffsets, these PDDs are written by project developers and situate a more general methodology in a specific geographical, ecological, and social context. Studying these documents reveals the priorities of project developers, including plans for biodiversity. Using a natural language processing tool, we developed a metric that shows whether a PDD mentions certain key biodiversity phrases. This is based on more commonly used biodiversity mention approaches, and simplified for the specific situation of PDDs.
Together with the methodology metric for restoration projects, this ‘mention’ metric informs the final biodiversity attention score. The BAS is ‘high’ for a project if it has positive values for either of the metrics, and ‘low’ if it doesn’t. In case the project only has values for one of the metrics, that value is taken as decisive. The biodiversity score covers most of the market’s nature-based issuances: it covers 78% of all issued credits from NBS projects. We will include the remaining PDDs in the near future, so our score will soon cover all nature-based credits on the market.
Having touched on the attention to biodiversity in ‘restoration’ projects in our previous blog, the inclusion of the mention metric now allows for the assessment of ‘conservation’ projects as well. (For an overview of this distinction between nature-based project types, see our previous blog and our biodiversity attention score methodology). 83% of ‘conservation’ carbon credits have been issued in projects for which AO has been able to generate a biodiversity attention score. For those conservation issuances, 88% are in projects with a high biodiversity attention score.
One example of how the ‘mention metric’ classifies projects as ‘high attention’ to biodiversity is the Floresta Verde REDD+ project (VCS1953). The project design document shows a study of biodiversity effects with and without the project, complete with assessment of individual species occurrences. This kind of project design is thoughtful, and incorporates the biodiversity angle into design in practice. Our hypothesis is that this increases the chances of biodiversity-positive outcomes.
The biodiversity attention score can be used, albeit preliminarily, to identify parts of the market that are performing well and others that are not. For example, it can be seen that many of the ‘high biodiversity attention’ credits are generated in the United States (mostly through restoration projects linked to the cap-and-trade system in California, see our previous blog), with over 240 million cumulative issuances.
The score can also be looked at to compare buyers of carbon credits. When looking at the biggest nature-based carbon credit buyers, there are clear differences between buyers relating to their carbon credit preferences. Whereas Shell, Eni, EasyJet and Volkswagen purchase a high percentage of credits with a high BAS, this percentage is much lower for Delta, Primax Colombia and Chevron.
We will soon develop a tool to track prices and other information for a representative set of projects with a high biodiversity attention score, and develop more detailed market insights. The score is still evolving, so stay tuned for more updates soon!