What is Mitigation Banking?
Mitigation banking is a system of credits and debits devised to ensure that ecological loss, especially to wetlands and streams resulting from various development works, is compensated for by the restoration and preservation of wetlands, natural habitats, streams, etc. in other areas so that there is no net loss to the environment.
What about Species Credits?
Creating or preserving habitat for certain protected and endangered species allows for the generation of species credits. Much like wetland and stream credits, companies impacting the habitat of these species must mitigate that impact, and purchasing credits is often the most practical and cost-effective way to do that.
What is the demand for credits?
The national market for stream and wetland credits has experienced significant growth since 2000, with U.S. Army Corps of Engineers approval of new mitigation banks and credit releases increasing substantially following favorable regulatory changes and release of the 208 Mitigation Rule (2008 Rule).
The carbon market has both compliance and voluntary segments. The largest compliance market in the U.S. in California. On the voluntary side, public companies have found that improving their carbon footprint has a significant, positive impact on their stock performance because many large funds have investment criteria requiring a percentage of their portfolios to be “green.”
