About

Role of nature markets

Although the benefits that nature provides are fundamental to human well-being and a healthy planet, the true value of the various goods and services nature provides, and our dependencies on them, are not reflected in conventional market prices. As a result, there is substantial underinvestment in natural capital, and biodiversity and ecosystem services are in serious decline. 

Despite on-going efforts, regulation, public funding, and philanthropy alone are proving insufficient to halt and reverse nature’s decline. Nature markets are emerging as part of the response. Driven by mandatory and voluntary targets to improve the environment, high-integrity nature markets have the potential to increase the funding available for activities that restore and enhance nature. 

The Task Force on Nature Related Financial Disclosures has highlighted the importance of nature for business and finance, and the opportunity to undertake ‘activities that support the protection, regeneration or restoration of habitats and ecosystems, including areas both within and outside the organisation’s direct control’. Participation in nature markets is one way to manage nature risk. 

Nature markets work by allocating resources to high priority nature-based activities, through payments for independently verified environmental outcomes and/or credits for the biodiversity and ecosystem services generated by these activities. 

Nature Markets have a key role to play in the UK to enable investment in nature-based solutions.  The UK Nature Markets Dialogue is being established to address the persistent barriers and gaps to the development of high-integrity environmental markets in the UK.