Bogotá, November 26, 2024. Terrasos, a leading company in sustainability and environmental management, actively participated in COP16, held in the city of Cali. As a panelist in over 29 events within the blue and green zones of the Conference of the Parties on Biodiversity, Terrasos reaffirmed its commitment to biodiversity conservation and shared its expertise in applying innovative solutions for financing and sustainably managing ecosystems. The company emphasized the importance of private investment and new financial mechanisms to address the environmental crisis.

Climate change, biodiversity loss, and ecosystem degradation have underscored that protecting nature is not only an environmental responsibility but also an economic and social necessity. Within this context, COP16 marked a significant milestone, highlighting that biodiversity must be part of every conversation. The private sector, governments, and local communities united around a common goal: protecting biodiversity to ensure the planet's health and the well-being of future generations.

During its participation in various events, the Terrasos team addressed topics such as how innovative financing mechanisms like biodiversity credits can help close the investment gap needed for ecosystem conservation and restoration. Mariana Sarmiento, CEO of Terrasos, highlighted the importance of agreements reached at COP16. While significant steps have been taken, challenges remain, particularly in implementing policies and allocating resources.

Biodiversity Credits: A Mechanism for Conservation

One of the central topics of COP16 was the use of biodiversity credits, an innovative financial mechanism enabling companies, governments, and other stakeholders to finance long-term conservation and restoration projects. Known as Tebu or “Terrasos Biodiversity Units”, this tool was created and developed by Terrasos in partnership with BID Lab and Fundación Santo Domingo, with the support of the Ministry of Environment and Sustainable Development. This platform combines biodiversity credits with blockchain technology, creating a tangible impact on biodiversity by protecting ecosystems and addressing issues such as biodiversity loss and climate change.

As an example of best practices in using these credits, Terrasos highlighted the model of habitat banks in Colombia. These are not financial institutions but territories that generate environmental benefits through conservation and restoration actions. In these banks, biodiversity "quotas" are commercialized under a "pay-for-results" principle, ensuring measurable and verifiable conservation efforts. These projects are also supported by the Ministry of Environment and Sustainable Development, providing a robust and transparent legal framework.

Lessons Learned and the Role of Local Communities

Colombia's experience with habitat banks offers valuable lessons on structuring biodiversity markets to deliver long-term results. According to Terrasos, biodiversity credits should not solely rely on private sector willingness but be driven by clear public policies that include tax incentives and preferential financing mechanisms.

Furthermore, these projects must go beyond an economic perspective by incorporating the voices and knowledge of local communities, especially those that have historically served as biodiversity custodians. Environmental education, active participation of Indigenous and Afro-descendant communities, and strengthening their management capacities are crucial to ensuring that biodiversity projects are inclusive, effective, and sustainable.

Principles for the Biodiversity Credits Market: A Sustainable Future

In line with the progress discussed at COP16, the International Advisory Panel on Biodiversity Credits (IAPB), of which Terrasos is a member, presented a series of principles and recommendations for creating a robust and effective biodiversity market. Key recommendations include:

• Focusing biodiversity credits on directly affected ecosystems.
• Supporting biodiversity credits with public policies to ensure scalability and effectiveness.
• Aligning biodiversity credit projects with the rights of Indigenous, Afro-descendant, and other local communities.
• Establishing minimum prices and costs to ensure biodiversity projects are economically viable and sustainable in the long term.
• Guaranteeing access to biodiversity credit markets with greater transparency and training to manage natural resources effectively.

 

COP16: Progress and Remaining Challenges

The Conference of the Parties on the Convention on Biological Diversity in Colombia made it clear that while progress in biodiversity protection is encouraging, significant challenges remain. As Mariana Sarmiento stated, "We saw a private sector that is learning and understanding that biodiversity is relevant, essential, and a fundamental element. We also observed a financial sector interested in participating in these processes but still searching for the path forward." The real test, however, will be governments' ability to reach agreements that operationalize the global biodiversity framework and ensure the mobilization of necessary resources for conservation.

While the advances at COP16 are a step in the right direction, Terrasos calls for urgent action. The financing gap to protect biodiversity is $700 billion annually—a figure that requires a firm and collaborative commitment from governments, the private sector, and communities to overcome.

Terrasos reaffirms its commitment to biodiversity conservation and the implementation of innovative solutions to protect ecosystems. The company will continue working alongside communities, governments, and private actors to develop projects that not only safeguard nature but also generate positive impacts on local and global economies.

For more information, contact Giovanni Fonseca Duffó at [email protected].