As demand grows for investments that deliver both financial returns and positive environmental impact, biodiversity credits are emerging as a new tool for aligning ecological restoration with market incentives. While years of unsustainable timber farming have seriously harmed the environment, biodiversity credits aim to capture the full spectrum of benefits that healthy ecosystems provide, from species recovery to improved water quality and soil health. Aleksandra Holmlund, CEO of Qarlbo Biodiversity, and Mark McMillan, CEO of 6M Properties and president and CEO of Advance Land and Timber, spoke with IREI about the promise and challenges of biodiversity credits, the methodology for measuring impact and how a pilot project in Merryville, La., is setting a new precedent for timberland investment. The following is a lightly edited and condensed version of the conversation.
What exactly is a biodiversity credit, and how does it differ from carbon credits?
