Biodiversity Credits to Fund Land-Use Change on the Table

There is no universal solution to financing land-use change in Aotearoa, according to new research, but new devices like biodiversity credits show promise, as do more traditional solutions like philanthropy and impact investing.

A market for biodiversity credits is one financing option that could be instrumental in helping New Zealand farmers fund land-use change to meet environmental targets, according to a new study.

The Options for Rural Investment project was carried out by Perrin Ag and GHA Chartered Accountants and Management Consultants as part of the Government’s Our Land and Water National Science Challenge.

The year-long study evaluated 17 different funding models to support land-use change and saw researchers run a series of workshops with farmers, industry leaders and experts to understand the obstacles to land-use change and financing solutions that could overcome them. Funding models assessed by the research team ranged from traditional debt financing and private investment to creating a market for biodiversity credits.