The UK has launched a pioneering set of nature investment standards designed to strengthen the integrity of green finance and position the country as a global leader in environmental restoration.
Published by the British Standards Institution (BSI), the new Overarching Principles Standard—known as BSI Flex 701—is the first government-backed framework of its kind anywhere in the world. It seeks to provide clear, consistent guidelines for investments in nature-positive projects, such as wetland restoration, improved flood resilience, and water quality enhancement.
The initiative comes amid growing concerns around greenwashing and the need for credible environmental finance. By establishing transparent criteria for what constitutes a ‘high-integrity’ nature investment, the standard intends to give business leaders and investors greater confidence that their funds are contributing to measurable outcomes for biodiversity and climate resilience.
Speaking at the launch, Environment Secretary Steve Reed said: “We need urgent action from across society to address the nature crisis, and businesses have a crucial role to play in that effort. By having clear standards, we can strike a blow to greenwashing and give businesses confidence that their investment is truly helping our natural world recover.”
Scott Steedman, Director-General of Standards at BSI, described the release as a “key milestone” in the development of robust nature markets in the UK. He added that the principles are designed to “provide consistency and rigour for high-integrity UK nature markets that trade in real, measurable environmental benefits.”
The standards are a cornerstone of the UK government’s broader ambition to make the country the world’s green finance capital. According to a report from the Green Finance Institute, failure to account for nature-related risks could reduce global GDP by as much as 6% in the coming decades—highlighting the economic rationale for urgent investment in ecological resilience.
Political leaders across the devolved administrations have endorsed the standard, calling on businesses to adopt it swiftly. Huw Irranca-Davies, Deputy First Minister of Wales, said: “This new standard will help make sure that when people invest in our natural environment, they do so in the right way.”
Scotland’s Cabinet Secretary for Rural Affairs, Mairi Gougeon, echoed the sentiment, calling the framework “an important step in setting out clearly what is required for markets to operate with high integrity.” Meanwhile, Andrew Muir, Northern Ireland’s Minister of Agriculture, underlined the role of nature markets in delivering “much-needed nature restoration at scale.”
In addition to the overarching principles, the BSI has launched consultations on a new Natural Carbon Standard, aimed at enhancing the credibility of nature-based carbon credit schemes. This forms part of the UK’s broader strategy to meet its net-zero targets and halt biodiversity loss by 2030, in line with international commitments under the Kunming-Montreal Global Biodiversity Framework.
The BSI Flex 701 standard is now available for immediate adoption by businesses, investors, and project developers. More information on the standard can be found via the BSI website.
For further context, the UK’s efforts sit within a wider global movement to regulate green finance. For example, [Azerbaijan is preparing to launch a global green investment rulebook at COP29](https://esgnews.com/azerbaijan-to-launch-global-green-investment-rulebook-at-cop29/), underscoring the international momentum behind clearer, enforceable standards in nature-based financing.
