This article is the introduction to the special issue entitled “SI: Biodiversity offsets as market based instruments (MBIs)?”

Based on contributions to the special issue, it shows that ‘biodiversity offset’ mechanisms, rather than grouped under a unified category of MBI, are actually better analyzed as diverse and dynamic policy arrangements in terms of policy discourses, coalitions and actors, rules of the games and resources.

Building on new institutional economics (transaction costs), it disentangles economic characteristics of these schemes and distinguishes these between market governance, hierarchy, and hybrid governance.

It provides evidence that most offsetting schemes are actually hybrid institutional arrangements (bilateral contracts) with few features of markets.

It contends that State influence, law and regulations are a critical element to take into account in the biodiversity offset policy debate.