Sep 26, 2022
Biodiversity on OFP: This is the Plan
Biodiversity and Conservation is a massive topic (estimated around 1.2 billion hectares of land globally) in climate circles, with a lot of open questions looking forward: How can we standardize biodiversity credits? What nomenclature or underlying methodology can accommodate such a wide diversity of value? How can we think of the emergence of a global biodiversity credit market? Interest in the emerging biodiversity market has ranged from the United Nations to the World Economic Forum. The underlying interest in the topic is twofold: First, to create a systematic solution for reversing ecosystem destruction and preserving biodiversity in the coming century. Second, to compensate for environmentally destructive behavior in other areas and industries, by purchasing credits reflecting ecosystem preservation.
On Open Forest, we have a unique opportunity to be at the forefront of this emerging biodiversity credit market as well as whatever evolves beyond such a market (more on this below). However, getting this vertical right is extremely important for both scaling and incentivizing conservation in the coming decades. In simple terms, we need to carefully and comprehensively think through this process now so that biodiversity and conservation can thrive on OFP for the next 50+ years.
Here is a little roadmap for how OFP plans to attack Biodiversity credits:
- Step 1: Start of the OFP Working Group for Biodiversity Credits (2–3 months). The working group will source perspectives from non-governmental organizations, international agencies, government stakeholders, indigenous communities, and existing climate tech builders. The goal of the working group is to come to an agreement on the criteria for issuing a biodiversity credit on OFP, and the different varieties of biodiversity credits therein.
- Step 2: Launch of the Biodiversity Vertical (Q2 2023). After successfully developing the criteria for issuing biodiversity credits on OFP, the OFP team will move to build and implement the biodiversity vertical on the platform. This means that conservation projects can be onboard to OFP, validators are given access to data uploads, and biodiversity credits can be issued to the biodiversity projects uploading data onto the protocol.
- Step 3: Scale up of biodiversity credits on OFP (2023–2030). With a robust and durable biodiversity vertical in the OFP ecosystem, the protocol becomes central to the scaling up of the biodiversity credit market — with fully transparent data and lifecycle information for each project involved. At scale, this market is expected to reach over 500 million dollars in the coming 10 years!
- Step 4: Begin the Transition to the Biodiversity Bank (2030–2035). With a robust and scaling biodiversity credit ecosystem live on OFP, the macro and final move is to ground biodiversity and conservation land as the basis for a new system of value. This is the end game for biodiversity on OFP.
- Step 5: Transition fully to making biodiversity the basis of value (2035+). Making biodiversity the new basis of value revolves around transitioning biodiversity credits from being a financial asset, to being the basis of finance (a store of value — a currency itself). This end game centers around the Greenback Biodiversity Bank (GBB) and a long-term plan to ‘flip the switch’ on how we as humans relate to nature and value. This goal is on a multi-decade to centuries long timeframe, and will largely force a new conversation on how we should relate to our environment on a species level.
The underlying belief of this roadmap is that any credit market is a temporary solution for re-imagining and re-inventing our relationship with nature and the value we derive from it. As projects of all sorts mature on Open Forest, the ultimate goal is to turn them into conservation projects. In this manner, a AR / IFM / AgroForestry / Mangrove project eventually grows into the biodiversity market — and ultimately, the basis of a new type of value. While we are only at the very beginning of this conversation, there is a large need for support, insight, and contributions from biodiversity experts and passionate environmentalists who care about this issue deeply!
To join the OFP Biodiversity Working Group please fill out the form here and we will be in touch!
