Voluntary vs. compliance regimes for the implementation of biodiversity offsets

Abstract

The discussion about voluntary vs. mandatory offsets has risen to particular attention with the planned No Net Loss initiative of the EU and the envisaged introduction of a mandatory compensation scheme at EU level. However, biodiversity offsets are far more complex than this distinction of two types of biodiversity offsets implies. Consequently, the aim of this study was to develop a refined typology with regard to the voluntariness of biodiversity offsets. To this end, four consecutive steps have been applied: 1. Deduction of an impressionistic classification of types, 2. Derivation (and reduction) of relevant attributes/criteria for voluntariness from the theory, 3. Substruction of the underlying attribute space and combinations of attributes and 4. Transformation (rectification) of the impressionistic types and analysis of meaningful correlations. As a result, a typology with seven types has been built: 1. Regulatory offsets: required by law and enforced 2. Conditional offsets: required by financial institutions (e.g. International Finance Corporation) 3. Enabled offsets: fostered by governments and NGOs through pilot schemes, guidance etc. 4. Sectoral offsets: take part in a voluntary self-commitment of a sector (e.g. mining) 5. Corporate offsets: resulting from a voluntary self-commitment of a corporation 6. Local offsets: single offsets, that are most likely developed at local level in a consensual process 7. Altruistic offsets: truly voluntary offsets that are driven by the altruistic motivation to make a positive impact The state of the scientific knowledge and the practical evidence explored throughout this study encourage the analysis (and use of) of the various forms of voluntary biodiversity offsets, in particular with regard to the evaluation of their outcome in terms of effectiveness and efficiency. This can help to contribute to an informed debate about biodiversity offsets and how they can be delivered in practice.