Bridging the Climate–Biodiversity Nexus: Lessons for EU Nature Credits

The Climate–Biodiversity Nexus report, prepared for the European Commission, explores how market mechanisms can mobilise biodiversity finance while maintaining integrity. Its findings fed into the development of the EU Nature Credits Roadmap, helping to shape thinking on how these emerging markets should evolve.

Drawing on this work, here are some reflections on what will make biodiversity credit markets both credible and impactful:

• Complement, don’t replace systemic change. Credits are no silver bullet. Subsidy reform and strong public finance remain essential foundations.

• Integrity is everything. High-integrity design requires clear additionality, robust biodiversity outcome measurement, and strong safeguards for Indigenous Peoples and Local Communities.

• Align climate and biodiversity markets. The voluntary carbon market needs stronger biodiversity rules; biodiversity credit markets should embed integrity principles from the outset.

• Government must lead. Clear policies, pilots, and consistent rules are needed to de-risk investment and stimulate private sector demand.

• Reward nature’s stewards fairly. Credits should incentivise nature-positive action and ensure equitable benefits, not just provide a mechanism for offsetting.

This work was shaped by a diverse Expert Group, including the World Economic Forum, Biodiversity Credit Alliance, Fauna & Flora, and the Advisory Panel on Biodiversity Credits, among others.

It was a pleasure to collaborate with ICF and Perspectives Climate Group on this important project.