Voluntary biodiversity credits or certificates represent a positive and permanent contribution to the environment, offering 100% traceability and verifiability. Terrasos, a company specialising in the structuring and operation of environmental investments, promotes this mechanism. Mariana Sarmiento, Terrasos' CEO, explains how they work.

What does Terrasos do?

Terrasos was established in 2013 and is a Colombian company with a focus on the structuring and operation of environmental investments. Our consolidation process was initiated when we took decisive action to develop solutions that ensure that private sector investments in biodiversity generate tangible and sustained results in the relevant territories.

The work is concentrated on four core areas: environmental compensation and investments, impact analysis, development of intervention strategies, and information management.

We are the leading organization in Colombia in terms of the number of Habitat Banks that we manage. Furthermore, we are at the forefront of the discussion on voluntary biodiversity credits in Latin America.

How are you doing today and what are your indicators?

Terrasos is a well-established and respected organization in the environmental consulting and mandatory offsets sector. We have developed over 30,000 hectares of environmental offsets using a comprehensive approach that integrates technical, financial, and legal considerations. Additionally, we have registered and are actively managing 2,500 hectares of Habitat Banks across four departments, with a minimum duration of 30 years. Furthermore, we oversee the management of 4,000 hectares under conservation agreements.

What is the ultimate goal?

Our objective is to become the industry standard for exceptional projects and biodiversity financing strategies on a global scale, with a particular focus on Colombia and Latin America.

What are your medium-term goals?

The goal is to consolidate 5,000 hectares under management in Habitat Banks and 4,000 hectares under conservation agreements in Bajo Cauca Antioqueño. The objective is to generate the financial sustainability of these conservation strategies for 30 years, leveraging US$50 million from the private sector.

Additionally, we aim to assist local communities and organizations in developing their own financing models for biodiversity conservation, with a minimum target of 10,000 hectares. Another objective is to establish Terrasos as a leading organization in biodiversity, with a financially sustainable business model and a leading role in the development and expansion of the Voluntary Biodiversity Credits (VCB) market.

What are Voluntary Biodiversity Credits?

Voluntary Biodiversity Credits or Certificates represent a positive and permanent contribution to biodiversity. They are 100% traceable and verifiable, and operate under the principle of payment by results, thereby contributing to the protection of biodiversity in highly degraded ecosystems.

It enables individuals and companies to achieve their sustainability goals in this area. They are designed to address the loss of species, threats, and permanent habitat destruction that have accumulated over time.

Each biodiversity credit represents a spatial unit of a conserved and restored ecosystem. The credits are backed by technical, financial, and legal guarantees that secure their value and the biodiversity they represent for a minimum of 30 years.

Colombia has a competitive advantage in this area, with regulations and mechanisms in place to channel voluntary investments in biodiversity, including the Habitat Banks.

Who are they aimed at?

To large, small and medium-sized companies, as well as individuals who are seeking to offset and make voluntary contributions to biodiversity.

Voluntary Biodiversity Credits provide a straightforward and cost-effective way for individuals and businesses of all sizes to support the preservation, restoration, and protection of biodiversity.

The mechanism is also designed to assist organizations, communities, and individuals who are responsible for conserving biodiversity. It provides a means for these parties to ensure the financial sustainability of their conservation efforts. Our objective is to sell $1 million in voluntary biodiversity credits by 2025.

What is their operational model, and what advantages do they offer to their holders?

Voluntary biodiversity credits represent a commitment to biodiversity protection. They are new products in existing markets that aim to leverage investment, ensuring that this investment reaches the intended territory, generates an impact, and can be sustained over time.

This mechanism allows the market to remain unified while reducing transaction costs and directing investment toward strategic initiatives with high impact.

In the context of mandatory offsets, hectares are the unit of measurement. In the voluntary context, meters are used instead. For example, 10 square meters of voluntary biodiversity credit can be purchased for 30 years through Terrasos e-commerce.