EU calls on businesses to join new expert group on nature credits
European Commission eyes market as way to help close green funding gap
The European Commission is preparing to tap businesses as part of its efforts to develop an EU market for nature credits.
Details of the group were outlined today (Monday) as part of a strategy that describes nature-related credits as a tool to help “bridge the significant financing gap” jeopardising Europe’s ability to meet its environmental commitments.
It follows last year’s recommendation, from an expert group including representatives from Tata Power, Siemens Energy Africa and the Luxembourg Stock Exchange, that the Commission should throw its weight behind biodiversity credits.
That report, initiated by then-commissioner for international partnerships Jutta Urpilainen, focused on how to channel sustainable finance to low-income economies.
It said there was a “need to establish methodologies for internationally-recognised biodiversity units, set up pricing mechanisms and adopt regulatory and integrity safeguards” as well as “policy measures, such as setting mandatory disclosure targets and establishing compliance markets”.
Today, the Commission said it will launch a call for expressions of interest to join a new expert group in coming months, drawing representatives from business, finance and civil society.
Building on an upcoming evaluation of supply and demand across Europe, the group will explore criteria and methodologies for developing a nature credit markets.
In 2027, its focus will shift to governance frameworks and proposing next steps.
The Commission acknowledged in its roadmap that nature credits “face many of the same challenges as other systems relying on [green] certification”.
But it argued that the EU is “well-positioned to lead in this field, thanks to its comprehensive regulatory framework, that ensures consumer protection, corporate accountability, and transparency in nature-positive investments”.
The UN and the World Economic Forum are also ramping up their activities in the area, with the latter co-authoring high-level principles for the biodiversity credit market in May.