Habitat Banking

Habitat banking is an environmental strategy that allows developers to offset potential habitat destruction by purchasing credits from conservation projects. When a company plans to build or develop land, it might harm local wildlife habitats. Instead of avoiding development, they can buy credits from a habitat bank—protected or restored areas managed for conservation—to compensate for their impact. This system encourages the preservation and restoration of natural habitats, ensuring biodiversity is maintained while allowing responsible development to proceed. Essentially, habitat banking creates a financial mechanism for balancing economic growth with environmental health.