Nature is facing a major crisis, with wildlife populations declining by an estimated 70% since 1970 and over a million species threatened. International agreements such as the Nairobi-Montreal Framework from COP15 call on states to mobilise tens of billions of dollars a year for nature conservation. But public funding is often not enough. In response to this need, a new, rapidly evolving market mechanism has emerged: natural credits (nature/biodiversity credits).

Definition and basic principle of operation

Natural credits are voluntary certificates, which serve to finance the protection and restoration of natural ecosystems. They represent concrete positive ecological results that are achieved beyond the scope of normal development or mandatory measures. These results may include a restored area of forest, wetland, coral reef or other habitat.

Similar to carbon credits, the goal of nature credits is to increase funding for biodiversity protection from the private sector and incentivize investment in restoring natural capital. Credits “price-value” plants, animals, or entire habitats and enable the tradability of these valuable ecosystem outputs.

The main principle is payment for a positive environmental outcome. Buyers (companies or individuals) purchase these credits, thereby supporting project implementers – such as farmers, conservation organizations or local communities. By making this purchase, buyers can formally fulfill their own environmental commitments.

The unit of credit can be defined in different ways. For example, in a project in Colombia, 1 credit means the conservation of 10 m² of forest for 30 years. Nature credits are only issued for results that represent proven "gain" in biodiversity over what would have happened otherwise.

Examples of implementation in the world

Nature credits are applied to a wide range of restoration and conservation projects, from preventing deforestation to protecting marine ecosystems:

1. Colombia – Forest Retreat in the Clouds: Project Mist Forest in the Colombian Andes, it protects hundreds of endangered species and provides ecosystem services (e.g. carbon storage and drinking water supply). Local landowners raise funds by selling biodiversity credits, with each credit representing the protection of 10 m² of forest for 30 years.
2. Zambia – Game Room and Wildlife: One of the first large-scale projects in Africa is being built in the Tondwa reserve. Local communities and the NGO Conserve Global have acquired the rights to manage the area and are selling “nature investment certificates.” One credit in this case corresponds to a ten-year contract to protect 1 hectare of game reserve.
3. Kenya – Seagrass meadows: Communities in Vanga Bay are expanding their existing mangrove project with new biodiversity credits targeting corals and seagrasses (Vanga Seagrass). This project (according to the Plan Vivo Nature standard) shows how to protect sensitive marine ecosystems where separate carbon certificates would not be appropriate. The funds from the sale of credits are used for ocean conservation and local development.
4. United Kingdom – Statutory scheme Biodiversity Net Gain (BNG): From 2024, new developers in England and Wales must provide at least 10 % increase in biodiversity with each construction. If they cannot achieve this on site, they must purchase biodiversity units outside the project or pay a so-called statutory creditsThis mandatory “nature bank” generates hundreds of millions of pounds for wetland restoration, tree planting and the establishment of protected areas, compensating for destroyed habitat by restoring other habitat.
5. Australia – Market Nature Repair Market: In March 2025, Australia launched the first regulated voluntary market for biodiversity credits. The scheme allows projects to earn certificates for actions that protect or restore nature (e.g. restoring local forest communities). Australian credits command a higher price than regular carbon credits because they value the complex biodiversity benefits. In addition, projects can also earn carbon credits (ACCUs) on the same land if they also address emissions reductions.

The examples given show that nature credits cover a wide range of habitats – from marine systems and savannas to rainforests.

Certification and quality guarantee

It is crucial for trust and market functionality quality guaranteeCertification standards verify that projects have actually achieved the declared environmental results.

Key standards and initiatives include:

• Verra – Nature Framework: This respected non-profit organization (known for its carbon certification) has developed the Nature Framework standard (launching in October 2024) for verifying biodiversity outcomes. Verra emphasizes that these are “positive investments in nature” that may not be used to correct their own environmental damage (i.e. they are not offset). Projects certified under this framework contribute to mobilizing $200 billion per year in biodiversity financing by 2030.
• Plan Vivo – PV Nature: This standard (launched in 2023) verifies the quality of biodiversity projects in development. It has already registered pilot projects such as Vanga Seagrass, and allows for the issuance of "biodiversity certificates" for local ecosystem diversity, including social aspects.
• Global Biodiversity Standard (CI): Developed by Conservation International (CI) in partnership with WWF and IUCN, it awards “biodiversity certificates” to sites that have demonstrated an increase in biodiversity from their baseline. While the TGBS does not create tradable credits, it provides independent validation of the quality of projects, making them easier to finance.
• Biodiversity Credit Alliance (BCA): The BCA has developed general principles and definitions for biodiversity credits, seeking a unified global framework.

Verification typically involves monitoring environmental indicators and independent audits over several years. It is also important to ensure the long-term durability of the measures and avoid double counting of credits.

Importance for ecosystem services and development

Nature credits directly support global biodiversity conservation. In addition to the obvious effect – protected and restored sites – the projects also bring other important benefits (so-called ecosystem services):

1. Climate protection: For example, carbon sequestration in phytomass.
2. Water mode: Forests store moisture and wetlands filter water.
3. Disaster risk reduction: Mangroves dampen storms, protecting the soil from erosion.

Investing in the maintenance of ecosystem services often benefits local communities and indigenous peoples, who then take care of the long-term maintenance of the services (e.g. sustainable fishing methods). In projects like the one in Kenya, the sale of credits also funds education, healthcare and infrastructure restoration for local communities.

Buyers may not be direct users of a particular ecosystem service (such as water or pollination) but are motivated by a broader environmental commitment. The market for nature credits also forces companies and governments to view ecosystems as assets, not just costs.

Current initiatives and warnings (2025)

By 2025, attention is on the rise for nature credits. For example, in July 2025, the European Commission presented the so-called "Roadmap towards Nature Credits", which aims to create a common European framework for a transparent market in nature credits. The plan stresses the need for strict rules to ensure that private investments "complement" public budgets.

Despite the enthusiasm, caution is needed. Scientific discussions warn against mechanically transferring the logic of carbon markets to nature, because habitats are complex and the results depend on the local context.

Experts warn that without transparent regulation and participation of all stakeholders, including indigenous communities, there may be "greenwashing" or unfair compensation for damages. Nature credits should always be only complement and should not undermine the obligations of states or the principle of the mitigation hierarchy ("avoid first").

In 2025, the importance of nature credits is growing, especially due to global conservation goals and the urgent need for private investment in eco-assets. If implemented transparently and responsibly, they can significantly contribute to climate stabilization, biodiversity maintenance, and the preservation of life-giving ecosystem services for future generations. JRi