Value calculations

Calculating the planetary value of the ecosystem issuing a biodiversity credit

Not every ecosystem is created equal. If we apply biogeochemistry science to look at the planet as an organism, some ecosystems are organs (a liver or a kidney), some ecosystems are muscle, skin, or bones (Boston, 2008). Our planet has crossed 6 of 9 planetary boundaries (Richardson et al. 2023), and urgent triage is needed for some ecosystems ahead of others. The resources represented by biodiversity credits must be directed in order of planetary importance. Especially in the context of unequal access to scientific resources and advocacy for IP and LC guarding critical biozones.

For example, biodiversity hotspots contain a high level of endemic species and have undergone greater than 30% destruction which makes them incredibly high-value for immediate protection (Kareiva and Kareiva 2017).

To create a standardized metric of ecosystem value from the perspective of all species on the planet, we utilized 12 reputable public classification schemas. BCPs must list their classification under these schemas in the Baseline ecosystem categorization.

Under the VBC unit issued by this methodology, BCPs must segment their crediting area by ecosystem, then normalize the credits issued for each ecosystem to Platinum, Gold, Silver, or Bronze based on the following Ecosystem value normalization table.

Table 2. Comparison of VBCs issued with normalized Ecosystem value

Type	Unit	Description
	Platinum 1 hectare 60 days	VBCs issued from the highest density, highest-threat locations, ie priority hotspots, critically endangered ecosystems. This is the highest value VBC in terms of the number of species being preserved.
	Gold 1 hectare 60 days	VBCs issued from high-density locations, endangered species, recognized hotspots. This is a high-priority location that may not have as much urgency as the platinum areas but is still very rich in terms of the species being protected.
	Silver 1 hectare 60 days	VBCs issued from vulnerable areas but with lower biodiversity. Silver areas may still be pristine, but they are areas that naturally have fewer species living there due to the particular landscape. Silver areas can have significance because of their proximity (within 50 kilometers) to other higher-value biodiversity areas.
	Bronze 1 hectare 60 days	VBCs issued from all other areas. May be of lower concern or lower density of biodiversity. Preservation adds value in terms of biodiversity load, but does not represent planetary ecosystem targets.

Note that the relative monetary value of different value credits will be determined by the market demand for each type of credit and with market standardization, represent publicly recognized priority for preservation.

Ecosystem value normalizations

Please note, this ecosystem normalization table is acknowledged to be incomplete. Even the most respected organizations (IUCN, National Geographic, Biodiversity hotspots, WWF and UNEP among others) have incompletely characterized datasets. This methodology will not attempt to give a complete ecosystem value calculation and will instead utilize external resources to provide this ranking, acknowledging that future versions will have updated categorizations based on wider public review.

Table 3. Ecosystem value for VBCs

Category Source	Platinum	Gold	Silver	Bronze
Biodiversity hotspots	Inside a biodiversity hotspot	Within 50 km of a recognized hotspot	Within 100 km of a recognized hotspot	All other locations
CBD National targets	Deforestation region 2020 - 2030	Deforestation region 2030 - 2050	Within 50km from gold region	No intrinsic ranking
Holdridge Life Zones	Complexity Index ≥270	Complexity Index ≥90 and ≤ 270	Complexity Index ≥45 and ≤ 90	Any other value
Irrecoverable carbon and irreplaceable biodiversity	High biodiversity, any carbon ranking	Medium biodiversity, any carbon ranking	Low biodiversity - high carbon	Any other ranking
IUCN Global Ecosystem Typology	50% probability of collapse within 50 years	20% probability of ecosystem collapse in within 50 years	10% probability of ecosystem collapse within 100 years	Any other probability
IUCN protected areas	Categories Ia, Ib	Category II	Category III, IV, and V	Any other category
IUCN Red List of Ecosystems	Critically endangered	Endangered	Vulnerable or Near threatened	No intrinisic ranking
IUCN Red LIst (of threatened species) - national level	>1 species naturally occurs in project area and is Extinct in the wild (reintroduction) or Critically endangered	>1 species naturally occurs in project area and is Endangered	>1 species naturally occurs in project area and is Vulnerable	No intrinisic ranking
Ramsar Wetland Classification	Ramsar Category I	Ramsar Category II	Ramsar Category III	No intrinsic ranking
Terrestrial Ecoregions of the World	Global 200 Ecoregions	Within 50km of a Global 200 Ecoregion	Within 100km of a Global 200 Ecoregion	All other locations
UNEP Forest Biodiversity Intactness Index	100% intact forest ecosystem with minimal human disturbance	75% intact forest ecosystem with moderate human disturbance	50% intact forest ecosystem with high human disturbance	All other values
World Heritage List UNESCO	Natural assets	Mixed assets	Cultural assets	All other locations
WWF for Nature Ecoregions	35 global priority places	Within 50km of a global priority place	Within 100km of a global priority place	All other locations

To date, many of the accepted ecosystem classification schemas are incomplete, or periodically updated. Given this limitation, within two competing rates, projects can select the ecosystem value that best serves their project, but must provide justification for their selection in the project scenario when two competing ranks are available.

An example value calculation for Colombia is provided in Appendix C .