The European Commission has announced a new initiative to develop a nature credits market aimed at promoting sustainable agriculture and ecosystem restoration while unlocking private investments to close Europe’s significant biodiversity funding gap.
The “Roadmap towards Nature Credits” outlines plans to establish a system in which land managers—such as farmers and foresters—can generate and sell credits for nature-positive actions, similar to carbon credits but focused on restoring biodiversity and protecting natural ecosystems.
Nature credits will represent measurable activities like supporting pollinators, restoring degraded habitats, or improving soil and water quality, which collectively help safeguard ecosystems.
These credits can be purchased by companies aiming to meet their environmental and sustainability goals, providing a revenue stream for land managers who adopt sustainable practices.
This market-driven approach is designed to reward conservation actions and support reinvestment into land management strategies that promote long-term ecological balance.
According to the European Commission, biodiversity loss and climate change pose severe risks to food production and environmental resilience in Europe.
Yet, a major financing gap—estimated at €37 billion annually—hampers efforts to transition toward nature-positive practices.
The nature credits market is intended to bridge this funding gap by channeling private capital toward on-the-ground conservation work, thereby supporting the EU’s wider goals of climate adaptation, biodiversity protection, and sustainable food security.
European Commission President Ursula von der Leyen emphasized the financial value of nature, stating, “We have to put nature on the balance sheet.
That’s exactly what nature credits do.” She added that a well-designed system would allow private investors to support nature, while providing income to farmers and landowners who carry out essential ecological work.
The roadmap outlines several key next steps, including the development of reliable standards, transparent certification processes, and methodologies to ensure the credibility and effectiveness of nature credits.
A dedicated expert group, including representatives from EU member states, environmental stakeholders, and technical specialists, will be established to co-design these elements.
A pilot phase will run from 2025 to 2027, with initial results expected by 2026, after which the Commission will assess future strategies for scaling the market.
Jessika Roswall, EU Commissioner for Environment, Water Resilience, and a Competitive Circular Economy, noted that the initiative could transform conservation into an economic opportunity.
“Nature credits have the potential to attract essential private investment, while also rewarding those who are the custodians of our land and seas,” she said.
“Our goal is clear: working hand in hand with nature and turning this into an opportunity for a resilient and competitive economy.”