The UK’s largest nature charities, including Wildlife Trusts, RSPB, Woodland Trust and National Trust have come together and have released a set of guidelines on ‘nature markets.’ These guidelines show a system that has been recently developed, which will enable companies to buy carbon credits and use these credits as payment to offset their impact, rather than using greenwashing.

Greenwashing consists of a company providing false claims that their business is having a positive impact on the environment, therefore this development made by the charities, offers an excellent alternative to these companies, whilst simultaneously benefitting the environment. The charities have decided that businesses will be able to buy carbon credits, biodiversity units, nutrient credits and natural flood management payments. These will all go towards paving the way for companies to offset their impact, whilst still being able to continue their business as normal.

Alongside these principles, the Government continues its work for the environment and after having published its Nature Markest Framework in May of this year, the Government has continued its commitment to nature through working with the British Standards Institute with the aim of developing standards for green financing. The Government recently made their overall goal clear, which consists of growing annual private investment in nature by the minimum of £500 million by 2027.

The charities have stated that their main focus for these guidelines is to provide help for science-based investments who are looking to support very high integrity natural capital markets in the UK. So far, the charities have worked with Finance Earth and Federated Hermes, who is a global leader in responsible investment management, and who have agreed to manage the UK Nature Impact Fund. This is a project which is supported by the Government and aims to stimulate institutional investment on a large scale. These investments will be provided to high quality nature restoration projects around the UK. This investment is a significant and necessary one and is very well placed in the UK Nature Impact Fund who have agreed to adopt the Nature Market Principles and ensure they are put into effect across all their project in the UK nature markets.

The chairman of Finance Earth, James Alexander, said, “These principles have been co-developed as a stop-gap to influence market practice today and to contribute to the much-needed emerging Government policy and regulation. The Nature Markets Principles have been informed by a range of credible UK and international sources, as well as the practical delivery experience of the UK’s leading nature charities whose aim is to support the development and long-term operation of high integrity, high quality and high impact UK markets for nature restoration and enhancement. Enshrined in the principles are the need for projects to be science-based, transparent and verifiable, ideally in perpetuity and benefiting local communities as well as society more broadly.”

The director of landscape recovery at The Wildlife Trusts, Dr Rob Stoneman, commented, “Nature-based credit schemes present a real opportunity to restore nature and create regeneration and prosperity in the countryside – if done in the right way. Buyers must stand up to scrutiny and truly contribute to nature’s recovery in the UK, while benefiting local communities. We welcome the business community and others working in this space to join us in upholding these principles.”

The director of income and conservation investment at the RSPB, Rebecca Munro, added, “We are in the middle of a nature and climate crisis, but we know that businesses want to have a greater role in being part of the solution. Well-regulated nature markets could be one way that we help grow business investment in restoring nature and responding to climate change, all whilst benefiting local communities.”