Biodiversity crediting
Project overview and key outcomes
The Biodiversity Credit Development Project explored how biodiversity uplift could be measured, validated and monetised within the UK’s evolving nature markets. Over the course of the project, the team:
- Developed a proposal for a scientifically rigorous biodiversity crediting methodology, aligning with best practices in biodiversity monitoring
- Conducted pilot studies to test the feasibility of biodiversity credit quantification using the proposed framework
- Worked with the UK Land Carbon Registry to explore crediting mechanisms
- Hosted a public consultation, receiving feedback from landowners, project developers and ecologists
- Collated the project outcomes and learnings to create a learning toolkit for those wishing to further develop or engage in nature finance mechanisms in the UK
Current project status
The proposed framework for biodiversity quantification was presented to the Woodland Carbon Code and Peatland Code executive boards at the end of February 2025. Although the boards were in support of developing biodiversity crediting within the standards, the decision was to pursue further funding to continue the research and development of this programme, instead of launching a biodiversity crediting framework in 2025. This project provides the foundation for further research.
To wrap up the first phase of the project, all relevant outputs and lessons have been collated and presented on this page. The aim is that the lessons from this project can be shared with the wider nature markets community to foster growth and collaboration in this burgeoning market.
Next steps
Although the framework is still in development, the project created robust scaffolding for future work in biodiversity quantification within the Peatland Code and Woodland Carbon Code.
Areas of future research for this project are highlighted in the guidance document below. Future funding will focus on data aggregation, methodology refinement, biodiversity uplift modelling and strengthening verification protocols, ensuring that biodiversity credits evolve into a fully functional, widely accepted tool within UK environmental finance.
Learning package
- Biodiversity quantification approach (Woodland Carbon Code methodology document)
- Biodiversity quantification approach (Peatland Code methodology document)
- Public consultation summary and feedback report
- Biodiversity metrics white paper
- Biodiversity methodology guidance document
- Independent validation report
- Learning toolkit to understand biodiversity metrics
- Measuring biodiversity from principles to practice webinar (March 2024)
- Biodiversity monitoring for a greener future knowledge sharing session (September 2024)
Funders
This project is supported by NatureScot in collaboration with the Scottish Government and in partnership with the National Lottery Heritage Fund, through the Facility for Investment Ready Nature in Scotland.
