Prospects for integration of carbon and biodiversity credits: an Australian case study review

According to current global trends, there is little prospect of achieving either the IPCC’s target reduction of carbon emissions needed to hold temperature increases to both 1.5 and 2.0 degrees or the UN’s Sustainable Development Goal’s target of preserving 30% of the world’s biodiversity by 2030. Given the interrelationship between economic growth, rising carbon emissions and loss of biodiversity, conflicts are arising in simultaneously achieving the associated environmental goals. This study therefore proposes an innovative way to integrate programs which symbiotically meet interlocking threats of global degradation of natural capital and climate change. Using Australia as a case study, we demonstrate how a joint carbon and biodiversity credit/offset scheme could maximise the returns from both and avoid negative outcomes from their separation. We highlight studies which show that Australia has particular nature-based advantages which would allow the application of a joint carbon/biodiversity (JCB) credit/offset scheme to marginal agricultural lands even at low carbon offset prices. We further argue that such an integration of the two streams would deliver a number of advantages in terms of progressing environmental goals both in the Australian context and globally. It is further argued firstly that the integration of carbon and biodiversity schemes could do much to refocus attention on the global extent of biodiversity loss, which has generally been attracting a secondary priority to that of curbing of carbon emissions. Secondly, it is pointed out that such a linkage can provide a more attractive means for corporations which seek to voluntarily widen their environmental credentials.