Daily Current Affairs : 5-January-2024
In the ever-growing global effort to safeguard biodiversity, a new financial mechanism has gained traction – bio-credits. This innovative approach is seen as a key player in achieving the targets set forth in the Kunming-Montreal Global Biodiversity Framework (KMGBF) adopted in 2022.
Understanding Bio-Credits
Bio-credits are financial instruments designed to provide crucial support for the objectives outlined in the KMGBF. Drawing inspiration from the concept of carbon credits, bio-credits operate on a similar principle. The core idea is to generate funds earmarked for biodiversity protection and restoration by trading credits. The funds generated through the sale of these bio-credits are then funnelled into conservation projects, creating a sustainable financial ecosystem for biodiversity preservation.
Organizations at the Helm
At the heart of the bio-credit movement is the Biodiversity Credit Alliance, launched during COP15 of the Convention on Biological Diversity (CBD) in 2022. This alliance is spearheading efforts to promote the use of bio-credits, serving as a catalyst for their widespread adoption. Additionally, other initiatives, such as the Ocean Conservation Commitments, have emerged to further bolster the utilization of bio-credits. These collaborative endeavors signify a collective commitment to exploring innovative financial solutions for the pressing challenges of biodiversity loss.
Benefits and Challenges
Benefits:
- Financial injection for biodiversity conservation
- Restoration of ecosystems
- Incentivizing sustainable practices
Challenges:
- Ensuring transparency in credit trading
- Balancing economic interests with ecological integrity
- Establishing standardized methodologies for credit generation
Important Points:
- Bio-Credits Overview:
- Financial instruments aligned with Kunming-Montreal Global Biodiversity Framework (KMGBF)
- Similar to carbon credits, generating funds for biodiversity protection and restoration
- Organizations Driving Bio-Credit Adoption:
- Biodiversity Credit Alliance launched in COP15 of CBD (2022)
- Ocean Conservation Commitments and similar initiatives promoting bio-credit utilization
- Bio-Credit Benefits:
- Financial injection for biodiversity conservation
- Restoration of ecosystems
- Incentivizing sustainable practices
- Bio-Credit Challenges:
- Ensuring transparency in credit trading
- Balancing economic interests with ecological integrity
- Establishing standardized methodologies for credit generation
Why In News
There is a surging momentum behind the concept of biodiversity credits or bio-credits, proposed as a financial mechanism to support the targets outlined in the Kunming-Montreal Global Biodiversity Framework (KMGBF) adopted in 2022. This innovative approach seeks to incentivize conservation efforts and sustainable practices by assigning economic value to biodiversity, fostering a harmonious balance between ecological preservation and economic development.
MCQs about Bio-Credits
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What is the primary purpose of bio-credits?
A. Generating funds for space exploration
B. Supporting targets in the Kunming-Montreal Global Biodiversity Framework
C. Enhancing digital technology research
D. Funding medical research initiatives
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Which organization was launched during COP15 of the Convention on Biological Diversity to promote bio-credits?
A. World Health Organization (WHO)
B. Biodiversity Credit Alliance
C. Greenpeace
D. International Monetary Fund (IMF)
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What are some benefits of bio-credits?
A. Promoting deforestation
B. Financial injection for biodiversity conservation
C. Encouraging pollution
D. Supporting overfishing practices
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What challenges are associated with the implementation of bio-credits?
A. Ensuring transparency in credit trading
B. Ignoring economic interests for ecological integrity
C. Avoiding standardized methodologies for credit generation
D. Encouraging unsustainable practices
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