Biodiversity and ecosystem services loss is a major global issue of increasing significance to the public, politicians and businesses. A key contributory solution, as advocated by the UN Convention of Biological Diversity and Millenium Ecosystem Assessment is to change the way people and businesses behave towards the environment through introducing economic incentives for biodiversity and ecosystem services (EIBs). These EIBs begin to reflect the true value of the environment, and are now being adopted worldwide with significant implications for businesses.
This is the second article in a series of four with the overall objective of exploring the literature relevant to the extent to which the development of economic incentives for biodiversity is likely to be an opportunity or risk for extractive and water companies over the next five to10 years.
The first article began the investigation by outlining the links between business and biodiversity. This second article explains what economic incentives for biodiversity are and provides examples from the literature that helps demonstrate how important they are becoming. Subsequent articles will indicate some of the associated implications of climate change, and highlight what strategies companies can adopt to best deal with environmental and biodiversity issues and the development of EIBs.Business Law Review