Environment and Sustainability Institute

ESI Incubator Project

The ESI Incubator Project offers underpinning administrative, logistical, physical space, external liaison and financial support to an interdisciplinary team based at the ESI to explore multiple opportunities for research and impact around an important emerging theme. The programme will nurture the establishment of the interdisciplinary team coming together through meetings, events and workshops to tackle an ambitious environmental challenge. The theme for this year's pilot project will be 'Implementing and Regulating Nature Markets.’

Implementing and Regulating Nature Markets

Led by Dr Tiago De Melo Cartaxo
Senior Lecturer in Environmental Law
Associate Director for External Engagement

Using the definitions determined by the late Government's Nature Markets Framework:

Nature markets are understood as a policy framework for scaling up private investment in nature recovery and sustainable farming. It includes mechanisms for private investment in nature through the sale of units of ecosystem services, which are delivered by nature restoration projects or improvements to land or coastal management. Nature markets can be voluntary - markets in which buyers purchase units of an ecosystem service voluntarily, for example to meet corporate net zero targets - or compliance nature markets - markets where buyers purchase units of an ecosystem service in order to meet regulatory requirements, for example to deliver biodiversity net gain. Biodiversity Net Gain (BNG) is an example of a way to contribute to the recovery of nature while developing land. It makes sure that habitats for wildlife are left in a measurably better state than they were before the development. In England, BNG is now mandatory under Schedule 7A of the Town and Country Planning Act 1990 (as inserted by Schedule 14 of the Environment Act 2021). Developers must deliver a BNG of 10% in their projects. This means that a development will result in more or better-quality natural habitat than there was before the development. Informed research regarding the verification, legislative and regulatory frameworks to support these activities still needs to be developed. This project, which is planned to run from January to July 2025, intends to conduct research exactly in that area of implementation and regulation of the markets, through doctrinal work, and collaborative meetings and workshops.

Nature Markets Policy Paper

This policy paper analyses the UK Nature Markets Framework, designed to attract private investment for nature recovery, aiming for £1 billion annually by 2030. It identifies significant challenges, including the complexity of biodiversity valuation, potential market failures in existing schemes like Biodiversity Net Gain, and a lack of robust regulatory oversight. The paper recommends establishing a centralised, independent regulator, developing unified, science-based metrics with mandatory third-party verification, and introducing regulation for corporate biodiversity impact disclosure. These measures are crucial to ensure markets deliver genuine ecological benefits and foster public trust, addressing current limitations. Download the publication: UK Nature Markets Framework policy paper.

Project team