Conservation banking is a market-based approach to environmental conservation that allows developers to offset their impact on ecosystems. By purchasing credits from a conservation bank, developers can fund the protection or restoration of habitats, ensuring that biodiversity is maintained even as development occurs. These credits are generated by conserving land or restoring ecosystems that provide valuable environmental services. Conservation banks are typically established in areas where endangered species or critical habitats are at risk. They are regulated by government agencies, ensuring that the conservation efforts meet specific ecological standards. This system encourages collaboration between developers and conservationists, promoting sustainable land use while protecting natural resources.