October 2010: The UN Development Programme (UNDP) and Price Waterhouse Coopers (PwC) launched a report, entitled “Habitat Banking in Latin America and the Caribbean: A feasibility assessment,” on the sidelines of the 10th meeting of the Conference of the Parties (COP 10) to the Convention on Biological Diversity (CBD), in Nagoya, Japan. The report argues that habitat banking, an emerging global market entailing the sale of credits for protecting biodiversity, is feasible in Latin America and the Caribbean.

The report assesses the opportunities, risks and barriers for countries in using habitat banking approaches to supplement traditional conservation strategies. The report is based on interviews and consultations with representatives from government, civil society, academia and the private sector in eight countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Panama and Peru.

The report indicates that habitat banking schemes have great potential for protecting biodiversity and reducing rural poverty in Latin American and Caribbean, if coupled with the required legislative and institutional reforms to support environment enforcement and scientific analysis. It estimates that habitat banking already accounts for a US$3 billion market in the United States. Under habitat banking initiatives, degraded land is restored and protected, allowing its owner to sell credits to companies or developers. The report notes the potential of Latin American and Caribbean countries to foster economic growth while protecting biodiversity. [The Report]