An Australian investment company has launched what it describes as the first tropical biodiversity credit scheme, Mongabay.com reports.
New Forests, a Sydney-based firm, has established the Malua Wildlife Habitat Conservation Bank in Malaysia as an attempt to raise funds for rainforest conservation.
The “Malua BioBank” will use an investment from a private equity fund to restore and protect 34,000 hectares (80,000 acres) of formerly logged forest.
The area will seve as a buffer between biological-rich forest reserve and oil palm plantations.
The credit scheme will generate “Biodiversity Conservation Certificates”, which wil be sold to bankroll a perpetual conservation trust and produce a return on investment for the Sabah Government and the private equity fund.