The European Commission has unveiled its “Roadmap towards Nature Credits,” an initiative designed to foster a new market for nature credits. This scheme aims to enable farmers and foresters to secure funding for activities that protect and preserve biodiversity and ecosystems by facilitating private capital flows from companies and investors.
Nature credits are conceptually similar to carbon credits, which represent efforts to reduce and sequester a specified amount of carbon emissions. Nature credits would signify activities that protect and restore biodiversity and ecosystems, focusing on nature-centric outcomes based on specific metrics and indicators.
The Commission highlights that biodiversity loss and climate change pose significant threats to agriculture, yet substantial gaps exist in funding sustainable practices. This includes an estimated €37 billion annual biodiversity funding gap in Europe. Nature credits could be sold to companies aiming to meet sustainability targets, with proceeds directed back to land managers to reward sustainable practices and enable reinvestment.
The initiative seeks to establish a reliable nature credit market to boost investment certainty in nature-positive actions, such as supporting pollinators or restoring dry ecosystems. This could drive the adoption of sustainable agricultural models and secure long-term food security in the EU.
European Commission President Ursula von der Leyen stated: “We have to put nature on the balance sheet. That’s exactly what nature credits do. When well-designed, they will provide an efficient, market-driven instrument that encourages 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.”
The Commission aims to develop clear standards and reliable certification for nature-positive actions to make nature credits effective and trustworthy, while avoiding administrative burdens for providers. A dedicated expert group comprising member states, stakeholders, and technical experts will be formed to co-develop certification methodologies and governance principles, with initial results anticipated in 2026. A pilot project on nature credits is set to launch from 2025 to 2027, after which further steps for market development and scaling will be considered.
Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy, commented: “Nature credits have the potential to attract essential private investment, while also rewarding those who are the custodians of our land and seas, including farmers, foresters and local communities. Our goal is clear: working hand in hand with nature and turning this into an opportunity for a resilient and competitive economy.”
The EU Commission’s nature credits roadmap can be accessed [here](https://environment.ec.europa.eu/publications/roadmap-towards-nature-credits_en).