Voluntary biodiversity credits: A review of concepts and a perspective on their application in European production forests

Forestlands suitable for timber production also have a significant role supporting biodiversity. Here, we synthesized the current state of knowledge on voluntary biodiversity credits as a market-based mechanism designed to incentivize conservation and restoration efforts in production forests. We compared these mechanisms with features common to carbon credits and assessed their consistency and alignment with existing European Union policies. Attributes particular to production forests, including well-defined tenure rights and the common use of forest management plans, poise them for the implementation of biodiversity credits. Among EU policies, the Taxonomy Regulation for Sustainable Activities and the Directive on Corporate Sustainability Reporting lay a framework that supports emerging biodiversity credit markets, and the EU Restoration Law provides a pathway for adoption across European production forests. Converging ecological opportunities, and policy and financial frameworks, may unlock voluntary biodiversity credits in production forests as a scalable pathway for private capital to support biodiversity conservation and restoration in Europe.