A metric for tradable biodiversity credits linked to the Living Planet Index and global species conservation

TL;DR

This paper introduces a simple, science-based biodiversity metric linked to the Living Planet Index, facilitating better conservation investment decisions and addressing extinction-related issues in biodiversity accounting.

Contribution

It proposes a new local biodiversity metric based on species abundance changes, mathematically linked to the Living Planet Index, with an improved formula to handle extinctions.

Findings

The metric quantifies changes in species survival probabilities.

Trade in the metric could optimize conservation resource allocation.

Barriers to adoption of the metric are low.

Abstract

Difficulties identifying appropriate biodiversity impact metrics remain a major barrier to inclusion of biodiversity considerations in environmentally responsible investment. We propose and analyse a simple science-based local metric: the sum of proportional changes in local species abundances relative to their global species abundances, with a correction for species close to extinction. As we show, this metric quantifies changes in the mean long-term global survival probability of species. It links mathematically to a widely cited global biodiversity indicator, the Living Planet Index, for which we propose an improved formula that directly addresses the known problem of singularities caused by extinctions. We show that, in an ideal market, trade in our metric would lead to near-optimal allocation of resources to species conservation. We further show that the metric is closely related to several other metrics and indices already in use. Barriers to adoption are therefore low. Used in conjunction with metrics addressing ecosystem functioning and services, potential areas of application include biodiversity related financial disclosures and voluntary or legislated no net biodiversity loss policies.