What are nature credits?

Nature credits are typically verified by third-party organisations using established methods and standards to ensure that the environmental benefits are real, positive and permanent. Think of them as a way to buy and sell measurable improvements to nature. It’s the same principle as carbon credits, where reductions in greenhouse gas emissions and carbon removals can be traded, but related to protecting and restoring biodiversity and ecosystems.

That means that a nature credit represents a single measurable unit of nature-positive benefits and often falls within these two main categories:

• Conservation – protecting existing high-value ecosystems such as old forests and sensitive marine areas that are under threat of being destroyed by human impacts.
   
• Restoration – creating, improving and/or building back lost biodiversity, for example by creating new wetlands and designed areas for wild pollinators.

Why do companies buy nature credits?

As more companies begin to measure their impact on biodiversity and recognise the business risks associated with nature loss, the need for financing solutions to address these business challenges grows. Companies can purchase credits to support nature-positive change, balance their environmental impact or fulfil their sustainability goals.