Habitat exchanges: How do they work?

Creating conservation incentives that work for people, wildlife and the economy

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With hundreds of species proposed for listing under the Endangered Species Act, our nation's system of protecting at-risk wildlife has not kept pace with the need to feed and fuel America's growth. We need new conservation tools – tools that protect wildlife and allow our economy to flourish.

Private landowners and industry are essential allies in balancing environmental and economic needs. This is particularly true considering that 75 percent of all land in the United States is privately held. Reversing declines in species will require setting up vast habitat ranges across multiple states at an unprecedented scale and pace.

The basics

In a habitat exchange, landowners such as farmers and ranchers create, maintain and improve habitat on their property and earn credits for their efforts. Landowners sell these credits to industry to compensate for development, such as roads, transmission lines and wind turbines, that impact species and habitat.

An independent habitat exchange administrator monitors and verifies credit transactions and reports on progress to ensure species protection. Every credit sale makes species and habitat better off.

Habitat Exchanges were developed for multiple species including the monarch butterfly, greater sage-grouse, and several species in the California Central Valley.

How habitats are evaluated

Watch our video to see how the Habitat Quantification Tool works to bring greater certainty and accountability to conservation planning for vulnerable species like the Swainson’s hawk.

Traditional conservation tools focus on acreage, but not enough on the quality of those acres. The Habitat Quantification Tool (HQT) – developed by EDF in conjunction with scientists and technical experts – uses a different approach designed to bring greater confidence to conservation decisions.

The HQT evaluates both quantity and quality of habitat using a unit called "functional acres." Habitat quality is determined using the best available science on a particular species' habitat needs. By using this tool before, during and after a conservation or development project, regulatory agencies can more precisely assess environmental impacts and generate positive outcomes for wildlife.

Resources

Learn more about how the Habitat Quantification Tool works in context:

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