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EU charts path for biodiversity credit market alongside carbon efforts

The European Commission has released a strategic blueprint to guide the development of a framework for nature and biodiversity credits across the European Union. This initiative will run in parallel with existing carbon market policies but is designed to integrate with them by drawing on similar standards and verification systems.

EU charts path for biodiversity credit market alongside carbon efforts_visual 1Doñana Wetlands in Spain are one of Europe’s most valuable and threatened biodiversity hotspots, home to the endangered Iberian lynx and a crucial refuge for migratory birds. AI generated picture.

At its core, the roadmap aims to mobilise both public and private investment to restore ecosystems, protect endangered species, and strengthen biodiversity throughout the bloc. Urban sprawl, intensive agriculture, pollution, and environmental degradation have left many natural habitats across Europe in decline. The Commission noted that current public funding falls far short of the €65 billion needed annually to meet biodiversity investment targets.

As part of its broader nature finance strategy, the EU has committed to allocating 10% of its budget to biodiversity initiatives by 2027 and to doubling its external biodiversity funding to €7 billion. However, the Commission stressed that combining public and private resources will be essential to reach scale and effectiveness.

Drawing inspiration from carbon markets, the EU plans to use the Carbon Removals and Farming Framework (CRCF) as a starting point for building a certification system for biodiversity credits. This includes developing tailored methodologies and verification tools by next year. Borrowing knowledge from carbon markets can facilitate initial progress and policy coherence and minimise administrative burdens, the Commission communication stated.

Read more: Microsoft deepens forest carbon commitment in new multi-million credit deal

Yet the framework acknowledges that biodiversity credits differ significantly from carbon credits. Nature outcomes can be harder to measure and verify, and biodiversity value is often highly site-specific. ‘They [biodiversity credits] can apply to interventions and areas non-linked or with limited additional carbon sequestration potential but high biodiversity value, such as supporting pollinators or restoring dry ecosystems’, the document explained.

Eve Tamme, a consultant in carbon removal markets, highlighted the challenge of establishing biodiversity metrics comparable to the universally recognised tonne of CO2 standard. ‘Nature markets don’t have the equivalent of 1 tonne CO2 that is the foundation of carbon markets—a tonne is a tonne’, she said. She also emphasised the importance of avoiding redundant certification layers. ‘Europe should have one environmental certification scheme under which different types of activities can be quantified and certified, and credits issued.’

Stakeholders have until 30 September to respond to the Commission’s proposals. Applications for a new expert group focused on nature-based credits will be accepted until 10 September 2025.

Read more: From the ground up to space: seeing DGB’s impact in Uganda

Restoring nature goes beyond carbon—it’s about valuing ecosystems for the biodiversity they sustain and the long-term resilience they offer. As the EU charts a new course for nature credits, businesses have a growing opportunity to contribute to measurable ecological restoration. By partnering with DGB, you can support high-impact biodiversity projects that align with emerging frameworks while advancing your sustainability goals. Want to be part of the solution? Discover how your contribution can help regenerate nature where it matters most.

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