• Biodiversity

Protecting biodiversity requires more than protected areas alone, it requires new economic models that reward people and territories for conserving ecosystems. The Brazilian state of Paraná’s Public Policy on Biodiversity Credits, launched at COP16, was presented as a pioneering subnational initiative that establishes guidelines for the economic valuation of biodiversity conservation, restoration, and protection actions, providing the foundation for an emerging biodiversity credit market.

Creation of Financial Incentives for Biodiversity Conservation 

The Paraná Public Policy on Biodiversity Credits was established by State Secretariat for Sustainable Development (SEDEST) Resolution No. 53, published on October 21, 2024, as a pioneering subnational initiative for the creation of economic mechanisms aimed at the valuation of biodiversity. The policy establishes an economic mechanism intended to encourage actions for the maintenance, preservation, conservation, restoration, recovery and improvement of ecosystems, which contributes to income generation and to the appreciation of initiatives that promote environmental, social and economic benefits. 

The public policy creates economic incentives for owners of Reservas Particulares do Patrimônio Natural (RPPNs) – translated to private natural heritage reserves – and other stakeholders to maintain and restore biodiversity. It seeks to generate new opportunities for the economic valuation of conservation, while strengthening Paraná’s efforts to address biodiversity loss and promote ecosystem protection. 

The pilot project is coordinated by SEDEST and includes seven RPPNs. These privately owned protected areas are recognized as fully protected conservation units and are established specifically for the conservation of biological diversity. Through the allocation of financial resources to biodiversity in these areas, the pilot project offers an opportunity to generate economic incentives that support long-term conservation on private land. 

From Policy to Implementation 

To support the implementation of the pilot project, SEDEST signed a Technical Cooperation Agreement with the Banco Regional de Desenvolvimento do Extremo Sul (BRDE). Under the terms of the agreement, BRDE invests R$ 2 million (two million reais) over two years for the purchase of biodiversity credits. This financial arrangement gives greater financial security to the participating private conservation areas and enables Paraná to innovate in conservation actions, alongside income generation for those who manage and protect ecosystems. 

The pilot project began in 2026, with an expected duration of two years and completion estimated for 2028. Its implementation involves not only the provision of financial resources, but also the technical work of SEDEST and the state environmental agencies, including the Instituto Água e Terra (IAT), in the stages of policy operationalization, monitoring, verification of results and stakeholder engagement. 

Within the scope of the pilot project, technical visits have already been carried out at three of the seven participating RPPNs, with the objective of getting to know the areas, collecting information and supporting the definition of conservation actions. The technical visits to the remaining four RPPNs are being scheduled. 

Development of an Evidence-Based Model 

As biodiversity credits are a relatively new public policy instrument, follow-up and monitoring are essential for the evaluation and improvement of the initiative in Paraná. The pilot project will be followed up and monitored by SEDEST through environmental, social and economic indicators. 

This monitoring aims to ensure that the biodiversity results generated by the pilot project remain aligned with the conservation objectives established by the public policy. The follow-up carried out by SEDEST will also make it possible to assess the effectiveness of the implemented actions, identify practices and strategies that show positive results, strengthen the credibility and transparency of the mechanism, and generate lessons that can inform the improvement of the policy and future biodiversity credit initiatives. 

Linkage of Biodiversity Economic Incentives to Local Action 

By establishing a mechanism that allows conservation results to be associated with the generation of economic value, Paraná seeks to strengthen conservation initiatives and expand incentives for the protection and recovery of biodiversity. 

The Public Policy directly supports biodiversity conservation and, at the same time, creates incentives for the strengthening of environmental management. In this context, economic incentives for biodiversity conservation help bring global conservation objectives closer to actions and decisions taken at the local scale. 

The policy is also aligned with the Estratégia e Plano de Ação Nacional para a Biodiversidade, EPANB (i.e. Brazil’s national biodiversity strategy and action plan) especially with regard to the objectives of reducing biodiversity loss, promoting the sustainable use of natural resources and developing economic instruments for conservation and ecosystem services.  

Why This Matters for COP17 

The Kunming-Montreal Global Biodiversity Framework establishes the need to significantly increase resources for biodiversity, including the mobilization of public and private investment. However, the translation of these global targets into concrete conservation actions requires mechanisms capable of mobilizing resources at the territorial scale and creating economic incentives for biodiversity conservation and restoration actions. 

Paraná’s Public Policy on Biodiversity Credits presents an experience under development on how a subnational government can structure and test economic mechanisms for conservation. Through the implementation of a pilot project, Paraná seeks to assess in practice how biodiversity credits can contribute to generating economic value associated with conservation results and to expanding the financing possibilities for these actions, benefitting both nature and those who protect it. 

As the global community prepares for COP17, Paraná’s experience contributes to the debate on the role of subnational governments in the innovation of economic incentive mechanisms for biodiversity conservation.  

GBF targets addressed: 1, 2, 3, 4, 19, 20. 

Focus areas: Biodiversity finance; Economic incentives; Conservation on private land; Ecosystem restoration; Subnational innovation; Nature-positive investment. 

Read more:

• https://www.sedest.pr.gov.br/Pagina/Creditos-de-Biodiversidade
• https://www.legislacao.pr.gov.br/legislacao/listarAtosAno.do?action=exibir&codAto=341610&indice=1&totalRegistros=84&anoSpan=2025&anoSelecionado=2024&mesSelecionado=0&isPaginado=true
• https://carbon-pulse.com/422483/

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