As human activity increasingly pressures ecosystems, biodiversity offsetting—balancing losses in one area with gains elsewhere—has become a growing tool for conservation, although with significant challenges. A new paper by NINA experts explores how integrating ecosystem accounting can enhance biodiversity offsetting, offering a promising approach to make conservation efforts more effective and transparent.
There is considerable overlap between biodiversity offsetting and ecosystem accounting: these two research fields apply very similar techniques to reach similar goals. Figure credit: Bálint Czúcz/Eva Setsaas NINA.
Biodiversity offsetting has gained traction as a mechanism to achieve "no net loss" of biodiversity. The concept is that negative impacts on biodiversity in one area are balanced by positive actions elsewhere. However, the lack of standardized methodologies to measure these biodiversity changes has hindered the success of offsetting schemes. This is where environmental accounting comes in.
The Need for Standardized Biodiversity Metrics
The System of Environmental - Economic Accounting Ecosystem Accounting (SEEA EA) framework provides a structured, standardized method for measuring ecosystem extent and condition. While this framework is typically associated with national or international reporting, it can also be adapted to smaller, local scales.
By integrating these ecosystem accounts into biodiversity offsetting, policymakers can create a unified, transparent system for comparing biodiversity gains and losses. This could help bridge the gap between different offsetting schemes and harmonize practices across diverse geographical regions, says Bálint Czúcz, Senior Researcher at NINA.
Challenges and Opportunities for "Offsetting-Ready" Ecosystem Accounts
While the potential for ecosystem accounting in offsetting is clear, several challenges remain. The paper identifies three key tasks that must be addressed to make ecosystem accounts more “offsetting-ready”:
- Offsetting-Relevant Condition Variables: Ecosystem accounting must incorporate condition variables that are directly relevant to biodiversity offsetting, such as measures of species richness, habitat quality, and ecosystem functionality. Current implementations of SEEA EA often fall short by focusing on a minimal set of condition variables, which may not be sufficient for offsetting applications.
- Scalable Field Data: Accurate ecosystem accounts require high-resolution data, which can be collected through field surveys or remote sensing. However, many national ecosystem accounts currently rely on aggregated data that is unsuitable for fine-scale offsetting applications. Integrating field-based data at a finer spatial resolution is essential for creating meaningful and actionable accounts.
- Offsetting Currencies: To compare biodiversity losses and gains, offsetting schemes often use "currencies"—units that quantify biodiversity in terms of both quantity and quality. SEEA EA can provide a straightforward way to construct these currencies by combining condition indicators with ecosystem extent. However, this process needs to be refined and standardized to ensure that the resulting currencies are both meaningful and comparable across different projects.
The Need for Pilot Projects
The paper emphasizes the importance of pilot projects to test and refine ecosystem accounts in real-world offsetting contexts. By running pilot studies, researchers and policymakers can fine-tune ecosystem accounting methods and gain valuable insights into how to effectively measure net biodiversity losses and gains, says Czúcz.
These pilot projects are important also for aligning biodiversity offsetting practices with global biodiversity goals. For instance, international frameworks like the Kunming-Montreal Global Biodiversity Framework and the EU Nature Restoration Law both call for quantitative assessments of biodiversity restoration, making it essential to develop reliable accounting tools.
A Path Towards Transformative Change
There is a growing recognition of the need for transparent, standardized methods to track and measure biodiversity gains and losses. The integration of ecosystem accounting into biodiversity offsetting presents a transformative opportunity to harmonize practices and improve policy effectiveness.
To achieve this will require investment and collaboration across scientific communities and policy sectors. However, the potential benefits, including more transparent and accountable biodiversity conservation efforts, are immense, Czúcz concludes.
Read the article here: Czúcz et al. 2025. No net loss accounting: Aligning biodiversity offsets with ecosystem accounts. Ecological Solutions and Evidence
Contact: Bálint Czúcz