Today, the European Commission launched a 'Roadmap towards Nature Credits', to incentivise private investments into actions that protect and preserve nature, and reward those who undertake these actions and invest in them.
Nature credits represent an investment into nature-positive actions by a company, a financial institution, a public entity or a citizen, which in return can benefit from cleaner ecosystems, risk reduction, improved reputation and higher social acceptability for its projects. Those nature-positive actions can be valued and certified by an independent organisation, thus providing credibility to investors sponsoring the action through nature credits. The actions supported by nature credits can take different forms; some examples in the EU include restoring wetlands or extending forest areas.
With three quarters of businesses in the euro area depending on nature, nature credits are emerging as an innovative tool that changes the way we value nature, and an asset attracting investors. Nature credits represent an opportunity for both business and nature restoration simultaneously: they will boost biodiversity and preserve habitats while generating revenue for those who work to protect nature and for investors.
They offer new income opportunities for farmers, foresters, fishers, landowners and local communities while helping them restore ecosystems and bolster the resilience of their businesses. The range of potential buyers and investors is wide too, from private companies and financial institutions to small investors and public entities.