The European Commission has identified an annual shortfall of €37 billion out of the €65 billion in annual funding needed for biodiversity. Private funding will have to make up the shortfall through ‘nature credits’, according to the Commission’s draft ‘roadmap’ for creating a European nature market.
As a “potentially valuable complement to public financing”, ‘nature credits’ should reward positive actions in favour of nature. “Global demand is projected to increase up to USD 180 billion annually by 2050 in the most positive demand projections”, estimated the Commission, which has accelerated its work on this subject in recent weeks (see EUROPE 13631/9, 13633/9).
Inspired by ‘carbon credits’, ‘biodiversity credits’ will have to draw lessons from them. Positive actions for nature must show “biodiversity outcomes clearly attributable to project interventions”. To guarantee a clear framework and avoid green claims, the European Commission wants to link positive actions remunerated via ‘nature credits’ to a certification obtained beforehand.
“A ‘nature credit’ should be a tradable unit issued only after the successful delivery and verification of measurable biodiversity outcomes, translating certificates into quantifiable units that can be registered, pooled, banked, and traded”, warns the European Commission. The methodology used must be “transparent”.
A timetable of actions has been identified to achieve the creation of a European nature credit market. In 2025-2026, “the Commission will carry out an EU-wide assessment of the market potential for ‘nature credits’, including demand projections and investment drivers”. Between 2025 and 2027, a pilot project on ‘nature credits’ will be launched as part of the Competitiveness Coordination Tool, to align public investment with long-term strategic priorities. In mid-2026, a group of experts will present “technical criteria and the outlines of a methodological framework, building on existing EU and international practices”. (Original version in French by Florent Servia)