The European Commission has launched a ‘Roadmap towards Nature Credits’ to incentivize private investment into protecting and preserving nature. These credits are an investment into nature-positive actions by a citizen, a public entity, a company, or a financial institution.
Nature-positive actions can take a variety of forms including restoring wetlands or extending forest areas in the EU. They can be evaluated and certified by an independent organization which will provide credibility to investors who choose to sponsor action. The goal of the ‘Nature Credit Roadmap’ is to create standards and certifications for nature positive actions.
As stated by the World Economic Forum more than 50% of global GDP depends on nature and its ecosystem services. In the EU two thirds of added economic value depends on nature.
Nature credits will serve as an additional source of financing for nature positive actions and will complement existing public funding for biodiversity. In addition to robust governance, the Roadmap will draw on existing standards to avoid greenwashing.
The EU Commission will establish a new expert group to foster a bottom-up approach to ensure coordinated and inclusive development of a reliable nature credits market. The goal is to involve concerned stakeholders. A call for expressions of interest in joining this expert group has been launched and will remain open until Sep, 10, 2025.
The commission has also invited scientists, businesses, governments, civil society, and all other interested parties to help shape this initiative with feedback. This call for feedback will remain open until September 30 2025.
Currently the EU is piloting nature credit initiatives in Estonia, France, and Peru. In addition the EU is working with international partners such as the International Advisory Panel on Biodiversity Credits, the Biodiversity Credit Alliance, the World Economic Forum.
An estimated €65 billion is needed annually for biodiversity investment. The EU has committed to allocating 10% of its budget to biodiversity by 2026-2027. In addition it intends to double its external biodiversity spending to €7 billion.
“We have to put nature on the balance sheet. That’s exactly what nature credits do,” said EU President Ursula Von Der Leyen. “When well-designed, they will provide an efficient, market-driven instrument that encourage the private sector to invest and innovate. With investment and innovation, we generate revenue for those who work to protect nature, including our farmers, our landowners, our foresters.”
