13.3.2.2 Biodiversity offsets

Similar to wetland banking and habitat banking, biodiversity offsets constitutes a mechanism that is based on the 'like-for-like' compensation concept. It can be applied in the case of a loss of nature areas because of land conversion, e.g. for residual purposes, or other types of damage caused by economic development.

A biodiversity offset is a piece of land that is set aside from development to maintain its biodiversity values and thereby to offset the effects of development on biodiversity values elsewhere. Biodiversity offsets are best applied near to where the development takes place. They are intended to compensate for unavoidable, residual impacts to biodiversity caused by the development project, where avoidance, mitigation, and restoration activities are insufficient to protect the resident biodiversity. Ultimately, the goal of biodiversity offsets is 'no net loss', and if possible a net gain (see Figure 13.3). Biodiversity offsets thus constitutes an instrument to balance the impacts of development activities with the conservation of biodiversity.1

Biodiversity offsets have to be differentiated between 'regulatory biodiversity offsets' and 'voluntary biodiversity offsets'. The regulated biodiversity offsets are driven by the need to comply with governmental regulations or legislation.2Both categories will be elaborated on in the following sections of this chapter.