“Nature credits are an opportunity to engage those who have so far stood aside — local and regional governments, investors, and industry — in the protection of biodiversity. If regions are given the tools and trust, they can become active players in achieving the EU’s climate and environmental goals.” With these words, Rastislav Trnka, President of the Košice Self-governing Region, presented his opinion Designing nature credits: A framework to promote biodiversity and ecosystem services during the ENVE Commission meeting at the European Committee of the Regions (CoR).
In his opinion, the rapporteur recognises biodiversity loss and ecosystem degradation as urgent global challenges that demand innovative, decentralised, and multi-level governance approaches. He emphasises the essential role of local and regional authorities (LRAs) as key actors in implementing nature credit schemes, particularly in regions facing significant environmental pressures.
Trnka calls for the creation of regional coordination platforms and the development of harmonised methodologies, technical standards, and mechanisms for best practice exchange to ensure high-quality implementation. He also advocates for dedicated capacity-building support to empower LRAs to set up nature credit funds, coordinate projects, and act as intermediaries between investors and implementing partners. The rapporteur reaffirmed the CoR’s readiness to contribute its expertise and networks to the EU’s evolving policy on nature credits as part of the broader green transition
The opinion further proposes integrating nature credits into the Corporate Sustainability Reporting Directive (CSRD), thereby creating incentives for businesses with high environmental impacts. It supports public-private partnerships, including pilot projects with buy-back guarantees, to mobilise biodiversity investments and develop replicable models across EU regions. Trnka also recommends prioritising nature credit pilot initiatives in environmentally burdened and economically disadvantaged areas, aiming to generate green jobs and enhance quality of life.
About Nature Credits
The European Union is advancing market-based solutions to address climate change, biodiversity loss, and ecosystem degradation. Among these, nature credits have emerged as a promising mechanism to stimulate investment in ecosystem restoration. By offering financial incentives for actions such as habitat rehabilitation, water retention, and species conservation, nature credits can help bridge environmental ambition with economic opportunity.
Following the ambitious conservation targets set at COP15 in 2022, the European Commission launched three pilot nature credit projects in 2024—in France, Estonia, and the Peruvian Amazon—during COP16. While current EU regulations mainly cover mandatory emission allowances and Environmental, Social, and Governance (ESG) reporting, voluntary mechanisms like carbon and nature credits remain largely unregulated.
A well-defined legal and financial framework is essential to guarantee the credibility, transparency, and efficiency of nature credit markets while avoiding price distortions and regional inequalities. Unlike emission allowances, which are centrally managed, nature credits can be regionalised, allowing local and regional governments and businesses to benefit directly from the capital they generate. A decentralised governance model could strengthen local economies and align with the EU’s broader environmental and cohesion policy objectives.
