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A new future for biodiversity funding: Mishcon Purpose advises on novel sustainable tourism pilot in Formentera

Posted on 19 November 2024

Mishcon Purpose has closely collaborated with the Nature & People Foundation (Foundation), Evertree Partners, Conservation Collective and others, on an international, multi-partner* sustainable tourism project in Formentera. The eight month "Living Formentera" pilot studied how biodiversity supports the financial, ecological and social capital of tourist destinations, and is key to preserving Formentera as a leading sustainable tourism spot. Coordinated by Evertree Partners, the project pilots the application of the Foundation's innovative urban biodiversity standard (UBS) in solving environmental and social challenges through the promotion of biodiversity. As climate change and tourism pressures rise, Living Formentera demonstrates how island economies can embrace resilience through ecological stewardship. 

Mishcon Purpose was instructed by the Foundation to advise on the legal, governance and sustainable impact aspects of the Living Formentera pilot. We have also supported the international stakeholder engagement and development the multi-capital sustainable tourism index model, and served as a close collaborator and project partner.  

The first phase of the project has now come to a close, having delivered a number of significant reports: a proposed biodiversity and sustainable tourism strategy for Formentera (Living Formentera Report); the Multi-Capital Sustainable Tourism Index; International Stakeholder Report; and Local Stakeholder Report. The project partners are now establishing a stakeholder review of their findings and consultation on the UBS, ahead of officially launching the Living Formentera Report and investment proposals for the island early next year. 

Publication of the project and the associated reports are now live and can be accessed here

Urban Biodiversity Standard  

The World Economic Forum ranked "biodiversity loss and ecosystem collapse" as the third most severe global risk over the next 10 years in its 2024 Global Risk Report. The UBS's main goal is to address this global challenge by aligning investment in biodiversity with social needs. It has been developed to be the first global standard that provides rules to measure urban biodiversity and ecosystem services. Mishcon Purpose has worked closely with the Foundation, advising on both the development and consultation process of the UBS.  

The UBS methodology includes metrics to rank species of tree, according to their ecosystem service provision (e.g. their ability to sequester carbon, reduce under canopy air temperature, absorb NO2). Urban areas can apply this methodology to address their particular environmental and social needs by planting specific plant species. It is envisaged that biodiversity credits will be issued to re-greening projects which increase vegetation cover and/or deliver ecosystem services. For example, in a city which suffers with high PM2.5 air pollution, a project would be credited for re-greening with cherry plum tree, or black pines, which have high PM2.5 absorption abilities.  

As recent discussions at COP16 circled the topic of biodiversity restoration, the desperate need for investment in biodiversity, and the development of the biodiversity credit market, the UBS aims to provide a solution to mobilising financial resources to address the global biodiversity crisis, whilst maintaining its absolute principles of integrity and transparency.   

The UBS is currently under consultation amongst relevant scientific experts, representatives from the biodiversity credits community, regional governments, and policy makers. The Living Formentera pilot is a key step in its development.   

Living Formentera Pilot  

Living Formentera has piloted the UBS in Formentera, a mediterranean biodiversity hotspot which relies heavily on tourism to support its economy. 

A multidisciplinary team from the University of Seville, Evertree Partners and CESYT conducted the pilot by: 

  1. Mapping the existing biodiversity on the island  
  2. Quantifying the ecosystem services provided by the existing vegetation 
  3. Designing restoration projects which establish specific species of vegetation to address the environmental and social challenges facing Formentera 
  4. Identifying restoration sites in which to establish restoration projects 

Ibiza & Formentera Preservation was instrumental in developing local stakeholder engagement. 

The Multi-Capital Sustainable Tourism Index 

Mishcon Purpose was commissioned by the Foundation to develop a Multi-Capital Sustainable Tourism Index (Index). The Index presents a novel framework for understanding and measuring sustainability in small island tourism, aiming to inform policy makers and stakeholders of the critical relationships between tourism and local capital. Evaluating tourism's impact across four key capitals: financial, social, ecological, and intangible assets, the Index measures the impact of biodiversity investments on Formentera’s ecosystem and tourism sector.  

By highlighting areas such as community well-being, natural capital, governance, and tourism infrastructure, the Index proposes metrics that small islands, like Formentera, can use to track and manage tourism sustainably. The Index recognises the profound reliance of island tourism on healthy ecosystems, whilst also recognising that small islands like Formentera face unique sustainability pressures, such as limited resources, heavy seasonal tourism, and vulnerability to climate impacts. The application of the Index in Living Formentera illustrates the potential for biodiversity investments to enhance the sustainability of both the island and its tourism sector, and indicates the need to protect the natural environment in order to preserve tourism-dependent economic stability, which relies on it. The Index is currently at the exploratory phase, and is intended to be trialled in further projects.  

Get in touch 

If you are interested and would like to be kept abreast of developments regarding Living Formentera or the UBS, or would like to speak to Mishcon Purpose on the development of biodiversity investment or natural capital solutions, please contact Alex Rhodes, head of Mishcon Purpose. 

*Project partners, collaborators and sponsors include: the Nature & People Foundation, Balearia, Conservation Collective, Mishcon de Reya LLP, Ibiza and Formentera Preservation, Evertree, Consell Insular de Formentera, and Prism the Gift Fund.  

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