The European Union is taking an interesting new approach to closing its €37 billion biodiversity funding gap: nature credits. Instead of relying solely on public money or traditional carbon markets, the EU wants to pay farmers and foresters for work that restores nature, like replanting forests or bringing back wetlands. The idea is to support rural communities while making real progress on climate and biodiversity goals. It’s a fresh direction after the ups and downs of carbon credits, with an extra focus on making sure these projects deliver actual results, not just paperwork.
To get this right, the EU is bringing together governments, scientists, farmers, and local groups to set up strict guidelines for how nature credits will work. The first test projects could launch in 2027. There’s a lot riding on transparency and accountability here—everyone agrees the mistakes made with carbon credits can’t be repeated.
If this all comes together, nature credits could bring in new private investment, help the environment, and give a real boost to the people working on the ground.
The Commission will this year form an expert group - including governments, farmers, local communities and scientists - to work on developing methodologies for "nature credits", and fund a pilot project for these credits by 2027, it said. This would let companies or countries buy credits issued by farmers, foresters and other land managers protecting nature by, for example, planting trees, restoring a wetland, or switching to regenerative types of agriculture.
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