Habitat Banks

Innovation for ecosystem conservation

What are Habitat Banks?

Habitat Banks are an innovative model for environmental investments and compensations, proven successful in conserving ecosystems in other countries. These areas, whether privately or publicly owned, are managed for their significant natural value. In return for their protection and sustainable management, the Banks enable third parties to meet their environmental obligations and compensate for impacts related to development.

This model not only promotes conservation but also ensures advanced investments with quantifiable outcomes through a payment-for-results scheme. Additionally, it allows for the allocation of voluntary resources from individuals and businesses by issuing biodiversity credits, driving innovative projects in a growing market.

How do they work?

1. Preservation and restoration areas are pre-established.

● Guarantee of technical and legal compliance.

● Definition of the number of available credits.

● Design of management plans/protocols.

● Contractual agreements to secure long-term sustainability.

● Registration, reporting, and monitoring to the Ministry of Environment and Sustainable Development (MADS).

2. Companies that are required to compensate buy credits.

● Execution of a usufruct agreement.

● Presentation and promotion of the mechanism to local and regional players.

● A contract is established between the company and the Habitat Bank for the necessary credits.

● The compensation plan is designed.

● Payments are made when specific environmental milestones are achieved.

● Preservation and restoration actions are implemented.

● Compliance is expedited, minimizing the risk of extra costs or extended timelines for the client.

What Do Habitat Banks Offer?

A credit represents the technical, legal, and financial management required to achieve effective compensation over a 30-year period.

What Is Included?

● Land Management
● Plan Formulation
● Baseline Data Collection
● Landowner Incentive
● Activity Implementation
● 30-Year Monitoring
● Supervision
● Reporting to Environmental Authority
● Trust Fund Management
● Usufruct Management
● Sustainability Fund
● External Auditing
● Contractual Management

The closure of each obligation will last as determined by the compensation and/or investment plan, and the respective approval from the environmental authority.

A credit may only be sold once.

Habitat Bank Guarantees

1. Technical

● Defined management plan.

● Monitoring and oversight plan with biodiversity impact indicators.

● External audit.

2. Financial

● Funds are managed via a trust.

● Sustainability fund to ensure long-term maintenance resources.

3. Legal

● Habitat Bank registered with the MADS (Ministry of Environment and Sustainable Development).

● Area is secured through a usufruct agreement with the landowners.

● Operational contract for the area designated as a Habitat Bank.

Benefits of Habitat Banks

Contribution

● Attract private investment to stimulate exceptional conservation projects.

● Consolidate environmental compensations to create meaningful impacts.

● Diversify and democratize the management of biodiversity, focusing on achieving results.

● Accelerate and ensure compliance with environmental obligations.

● Stimulate the rural economy, leading to local development.

● Safeguard the most well-preserved ecosystems and support succession processes in those that are more degraded.

● Create knowledge on methodologies for the propagation of native species.

Impact on the Regions

● Creates new business opportunities in regions with challenging conditions.

● Generates new employment opportunities for local residents.

● Develops new skills and knowledge in workforce involved in the project.

● Encourages education and environmental conservation of ecosystem resources in the regions.

Discover Our Habitat Banks

EXPLORE HABITAT BANKS
LA LOPE
EXPLORE BANK
MATA DE LATA
EXPLORE BANK
YERRECUY (ASOCASAN)
EXPLORE BANK
LIBORINA
EXPLORE BANK
EL GLOBO
EXPLORE BANK
AGUADULCE
EXPLORE BANK
MESA DE SAN PEDRO
EXPLORE BANK
EL AMPARO
EXPLORE BANK
EL META
EXPLORE BANK

Applicable Environmental Regulations

The Ministry of Environment and Sustainable Development (MADS) recently issued an administrative act that regulates habitat banks. This act outlines the scope of application, the conditions for establishing habitat banks, and the requirements for registration. The resolution considers these banks a mechanism for fulfilling obligations related to environmental compensations and the mandatory 1% investment, as well as other conservation initiatives that can be implemented through actions focused on the preservation, restoration, and sustainable use of ecosystems and their biodiversity, following a performance-based payment model. To create habitat banks, compliance with the principles of additionality, complementarity, sustainability, permanence, performance-based payment, and knowledge management is required.
Resolution adopting the update to the Manual on Environmental Compensation for the Biotic Component in Terrestrial Ecosystems for projects, works, or activities subject to environmental licensing, temporary or permanent removal from a national or regional forest reserve, and single-use forest utilization permits. Implementation of the compensation plan must begin no later than six (6) months after the impact or effect of the project, construction work, or activity subject to an environmental license or single-use forest utilization permit occurs. In the case of temporary or permanent exclusion from forest reserves, implementation shall begin upon the entry into force of the administrative act approving the compensation plan.
This Decree aims to promote more appropriate water management by requiring all projects that involve the use of water drawn directly from natural sources—and that are subject to obtaining an environmental license—to allocate 1% of the total investment in such projects to the recovery, conservation, preservation, and monitoring of the watershed that feeds the respective water source. Mechanisms for implementing these investments include Habitat Banks, as well as others such as payments for environmental services, conservation agreements, and the implementation of conservation initiatives.