Brussels (Brussels Morning Newspaper) – The European Union plans to establish regulations for “nature credits” that compensate farmers and foresters for ecosystem conservation. This initiative aims to enhance the economic viability of such practices, according to the European Commission announced on Monday.
The EU is exploring options to boost funding for environmental protection without overburdening public budgets already strained by other priorities such as defense. It currently allocates large subsidies to farmers through its Common Agricultural Policy and estimates a 37-billion-euro annual funding gap to safeguard biodiversity.
How will nature credits support EU environmental goals?
This year, the Commission will establish an expert group comprising governments, farmers, local communities, and scientists to develop methodologies for “nature credits.” Additionally, they plan to fund a pilot project for these credits by 2027, according to the statement.
On Monday, the Commission acknowledged the “challenges and opportunities’ identified in the carbon credit markets.
This approach allows companies or countries to purchase credits issued by farmers, foresters, and other land managers who conserve nature through actions like planting trees, restoring wetlands, or adopting regenerative agriculture practices.
The expert group will evaluate how to certify nature credits and manage a market for them before determining if this should be incorporated into EU law.
“This is not about turning nature into a commodity, but about recognising and rewarding actions that restore and sustain nature,”
EU environment commissioner Jessika Roswall said.
The concept reflects a more mature ‘carbon credits’ market, where projects that cut CO2 emissions sell credits to companies aiming to support climate change efforts. However, the market has been hampered by recent scandals involving projects that issued credits but did not achieve the claimed climate benefits.
How does the 2040 climate target affect this plan?
Furthermore, Last week, the European Commission proposed a new binding climate target for the EU: a 90% net reduction in greenhouse gas emissions by 2040 relative to 1990 levels.
This target is an important advancement in the EU’s ongoing journey toward climate neutrality in 2050 and follows the existing target for 2030 of at least a 55% reduction. For the first time, the proposal would allow EU member states to include international carbon credits as part of their climate target.
