The European Commission published on 7 July 2025 Nature Credit Roadmap, i.e. a set of measures aimed at creating a valuable, certified market rewarding pro-biodiversity activities such as wetland protection, river restoration, forest management, species protection, etc. The idea of the so-called 'nature credit' will work similarly to carbon credits, but this time they will be aimed at restoring ecosystems.
The aim of this project is to secure private funding – from companies, investors, local governments and citizens – alongside the EU budget, which, according to the Commission, has a funding gap of around €37 billion per year for nature conservation purposes.
'Nature credits': step-by-step schedule
The European Commission is consciously building a mechanism to bridge the funding gap for nature conservation. Instead of relying solely on public funds, the roadmap shows how private funds—from companies, funds, and citizens—can support real action for nature.
Thanks to the multi-stage approach, with pilots, consultations and legislative assessment, the roadmap aims to minimize the risks known from the carbon offset market (greenwashing, lack of additionality, lack of durability). If successful, 'nature credits' will become a new standard in European ESG and a complementary element for the EU's climate and environmental policy.
And what does the Commission's planned roadmap for the coming years look like? As follows:
'Nature credits' a CBAM
As we know, the ETS and CBAM are the main emission reduction tools in the EU, introducing taxation, caps, and tariffs on imports. Nature credits, on the other hand, are a complementary element aimed at financing nature-based activities that strengthen ecosystem resilience (e.g., water retention, CO₂ storage, biodiversity) – although they do not directly compensate for emissions.
In the context of the flexibility adopted in the 2040 plan , the EU intends to allow up to 3% emission reductions through the purchase of international carbon credits – but with high quality standards and from 2036.
CBAM will continue to operate from 2026 on imported goods – nature credits will not directly affect its functioning, but they can constitute a positive offer from the EU: not only to “penalize” emissions, but also to “reward” nature.
Why is it important?
There are many benefits to be mentioned here in connection with the proposed introduction of 'nature credits', but also their challenges. We have taken the liberty of collecting them in one place.
➕ Benefits:
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Companies :
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Strengthening ESG image, partnerships, access to new funds.
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Compensation for operational risks – e.g. water, raw materials, climate.
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New financial instrument in the sustainable development portfolio.
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Farmers and foresters :
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Income from ecosystems – wetlands, woodlands, species.
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Greater financial stability, modern agriculture.
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Local communities and citizens :
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Improving the quality of the environment – air, water, recreational areas.
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New jobs and participation in nature projects.
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⚠️ Threats:
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Risk of “greenwashing” and low quality of projects – the EC places emphasis on reliable certificates.
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Coordination with the EU budget is essential – so as not to replace public subsidies with private finance.
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The possibility that investments will go where they are easiest, not where they are most ecologically needed – priority maps and monitoring are necessary.
Realistic Impact Assessment
'Nature credits' can become a complementary tool to the current EU policy, but they will not replace the ETS or CBAM climate program. However, they fit into the growing trend of green financing. This is not a market pathology, but a response to the gaps in the implementation and financing of biodiversity.
If the roadmap is implemented, the first, reliable initiatives will be created by 2027. This in turn may inspire other countries and organizations to shape similar environmental projects, building a balance between environmental protection and economic development.
What are our recommendations?
Primarily:
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Follow the schedule and pilot projects. Projects are being accepted until September 2025, and consultations and standard definitions are planned for 2026.
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Get involved as an agri-forestry-environmental sector entity or an ESG investor. This could present a unique opportunity to participate in early-stage market development.
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Be critical: pay attention to the quality of credits, certifications and monitor actual environmental performance.