Cali, 25 October 2024 - Climate project expert and consultant South Pole today at the Convention on Biological Diversity's COP16 launched Alto de Ventanas, one of Colombia's first habitat banks dedicated exclusively on restoration-based activities.
The project was registered with Colombian Ministry of Environment's habitat banking scheme in October 2024, marking a milestone for biodiversity financing in Colombia. While previous habitat banks have combined preservation and restoration efforts, Alto de Ventanas focuses exclusively on restoration - a critical move in achieving biodiversity net-gains. The project enhances habitats for unique and threatened species across 168 hectares through native tree planting and assisted natural regeneration, while also boosting the resilience of Andean ecosystems known for their ability to sequester carbon, regulate water, reduce soil erosion, and mitigate landslides. Alto de Ventanas is implemented in partnership with Colombian NGO, Corporación Salvamontes.
Habitat banking is a biodiversity conservation finance mechanism increasingly used around the world, and has been regulated in Colombia since 2017. By mitigating and avoiding biodiversity loss through land restoration, they generate biodiversity gains that are represented as biodiversity credits. Companies and people can purchase these credits to make meaningful investments in nature, aligning their actions to restore and prevent biodiversity loss, strengthen ecosystem resilience and climate action.
Carolina Jaramillo, Regional Director of Certificates, Latin America, at South Pole, said: "Colombia currently has 18 habitat banks, most of which mix preservation and restoration actions. Alto de Ventanas marks a major milestone as it is dedicated exclusively to habitat restoration. Restoration activities are essential for reversing environmental damage, strengthening ecosystems, and ensuring long-term sustainability. The idea is to leave the natural environment in a measurably better state than when you found it."
Carolina added: "In line with market transparency, Alto de Ventanas undertakes rigorous biodiversity assessments, risk management, and transparent fund management, all centred on ensuring investments are directly linked to measurable habitat restoration. South Pole is proud to lead this effort in such a vital biodiversity hotspot."
Alto de Ventanas operates under the Habitat Banking framework established by the Colombian government as a mechanism for mandatory and voluntary investments in biodiversity. As a pay-for-results scheme, credits or units are sold after impact and management milestones have been met, ensuring a high-integrity, performance-based model. Each credit sold finances project implementation, and sales are directly linked to the funding required for activities. Compliance reports must be submitted periodically to the Colombian Ministry of Environment to ensure that activities related to measuring net biodiversity gains are carried out.
Steve Edwards, Global Director of Biodiversity at South Pole said: "Habitat banks are becoming crucial for meeting global biodiversity goals. By driving nature-positive investments, as well as enabling regulatory compliance, they play a key role in fulfilling the Global Biodiversity Framework (GBF) commitments, which will be at the centre of negotiations here in Cali."
Steve added: "Companies are also increasingly recognising that investing in nature not only boosts their reputation among stakeholders, consumers and employees, but also helps them comply with stricter environmental regulations, secure long-term business resilience and enhance financial stability through sustainable investments. Alto de Ventanas is market ready and its progress will be one to watch."
Alto de Ventanas aims to support both voluntary and compliance biodiversity markets, with high-impact sectors like mining, infrastructure, and oil and gas driving demand. Although still in its early stages compared to the carbon market, the biodiversity market has immense growth potential. As trading frameworks for biodiversity outcomes develop, the market is expected to expand substantially, playing a pivotal role in sustainable development. The World Economic Forum estimates that global demand for biodiversity credits could reach $7 billion by 2030 and a staggering $180 billion in 2050 annually to help meet global biodiversity goals.
Sebastián Vieira, Executive Director at Salvamontes explained: "Alto de Ventanas is built to last, and that is because of its commitment to transparency and accountability from the start and how it incorporates local knowledge. By focusing on measurable outcomes, we can strengthen the legitimacy and impact of Colombian biodiversity projects—setting an example the rest of the world can follow."
Over the next 20 years, Alto de Ventanas Habitat Bank will play a pivotal role in financing biodiversity conservation in Colombia, helping the country preserve its nature-focused legacy while contributing to the global biodiversity market. It offers an innovative and effective approach to driving meaningful biodiversity action.
ENDS
media@southpole.com
georgia@browningenvironmental.com
Image Credit: Salvamontes.org
South Pole partners with the Colombian NGO Salvamontes for the development of the Alto de Ventanas project, where the proposed activities and methodologies align with National Government biodiversity frameworks. The project was registered with Colombian Ministry of Environment's habitat banking scheme in October 2024. Additionally, South Pole manages the sale of biodiversity credits to secure funding for the project's operations, which are implemented on the ground by Salvamontes.
Every six months for 20 years, compliance reports must be submitted to the Colombian Ministry of Environment to assess whether the activities associated with measuring net biodiversity gains are being carried out and to allow the registration to be maintained.
Credits will be sold as management and impact milestones defined by the project are reached, aimed at generating biodiversity gains. They are sold based on the restoration of 10m2 within the habitat bank. Impact milestones include, amongst others, a decrease in the cover of introduced grasses and invasive species and an increase in tree cover within the intervention area, as well as a change in the structure, composition, and functional diversity of the fauna, towards a greater similarity with species of more advanced successional stages or typical of forests in a good state of conservation.
Alto de Ventanas was selected for its irreplaceability, high levels of endemism, and exceptional biodiversity. This makes it a critical area for conservation efforts, particularly within the Regional Integrated Management District, which bears its name.
In Colombia, habitat banks are a conservation financing mechanism that allows companies and people to invest in conservation activities such as preservation and restoration. Although there is a differentiation between biodiversity credits and mandatory offsets, habitat banks are an efficient mechanism for financing from both markets. These banks are regulated by Colombian environmental legislation and adhere to specific design and implementation guidelines. Habitat banks enable multiple companies to contribute to the same area, operating under a pay-for-performance model, where investments are made once the agreed-upon impact milestones are achieved.
This mechanism is traded in the market through "biodiversity quotas," allowing transactions between parties investing in biodiversity. These quotas represent biodiversity units equivalent to hectares within the project area and are key to structuring and maintaining conservation efforts.
Habitat banks offer a hybrid model, accommodating both voluntary and mandatory investments from the public and private sectors. While Colombian regulations do not explicitly use the term "biodiversity credits" as seen globally (a financial mechanism enabling private investment in nature conservation aligned with the COP15 biodiversity framework), they function the same.
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Since 2006, South Pole has been a trusted partner and advisor to governments, public sector organisations, and leading businesses on their decarbonisation journeys. South Pole serves over 1,000 clients across the world, and its global team of experts has helped many Fortune 500 businesses implement comprehensive strategies that help build resilience and turn climate action into long-term business opportunities.
In line with its mission to deliver true climate impact for all, South Pole has used the power of markets to help channel climate finance to over 850 projects in more than 50 countries across the globe. To date, these projects have helped reduce over 200 million metric tonnes of CO2 emissions, accelerated low-carbon transformations across several sectors, and provided measurable benefits to communities vulnerable to climate change.
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The Habitat Bank scheme provides an efficient mechanism for voluntary nature investments, and for businesses needing to compensate for residual environmental impacts; contributing to the conservation of the incredible diversity of wildlife that inhabits the region.
