Building the foundations of a market for biodiversity credits

With UK Partnering for Accelerated Climate Transitions (UK-PACT) support, the Malaysian startup Nature Based Solutions (NBS), formerly Rimba, worked with the State’s 'Green Financing Taskforce' to develop a framework that would allow private sector funding to be channelled into forest protection and conservation activities. NBS conducted workshops with the Taskforce to identify opportunities, address gaps, and design pathways for sustainable financing of nature-based solutions projects in the state. The project also included a networking component that held consultations with the private sector to better understand their expectations and to bridge the gap between the stewards of the land and financing requirements. A key outcome was the establishment of 30,000ha of the Kenyir forest catchment as a designated green financing pilot site. Through its networking component, the NBS secured private investment to fund the pilot. The first tranche of funding is expected to be released for the Kenyir State Park pilot site and will be enacted through a payment-for-performance scheme linked to the ecosystem services outcomes certified under Verra’s Verified Carbon Standard (VCS) and Climate, Community & Biodiversity (CCB) standards.