Nature markets

Carbon sequestration, biodiversity conservation and water management are just three ways nature markets can benefit farmers, landowners and land managers financially while contributing to the UK’s net zero target. Learn about market opportunities, potential benefits and the challenges of entering a scheme.

Overview

Nature markets offer potential opportunities for farmers, landowners and land managers to benefit from sustainable land use while contributing to the UK’s net zero target by 2050.  

These markets provide financial incentives for practices such as carbon sequestration, biodiversity conservation and water management.  

As climate change increases the frequency of extreme weather events, nature markets may help enhance land resilience, unlock new income streams and support long-term environmental sustainability.

However, in order to truly know your gains, you will need to know your starting point and measure your current net carbon position. This is what we are trialling through the Environment Baselining Pilot and hope to see rolled out more widely.  

When considering involvement in any scheme you need to consider how any changes will impact on your existing businesses. 

Read on to find out more.

What are nature markets? 

A nature market is a mechanism in which investment into nature is funded through the sale of units of ecosystems services. Such services include carbon sequestration, biodiversity, water quality improvement and flood mitigation.  

Nature markets available

A range of nature markets are emerging across the UK, including carbon markets for carbon sequestration, biodiversity markets such as Biodiversity Net Gain schemes, and water-related markets covering Nutrient Neutrality schemes, water quality improvements and flood management.

How to engage and access 

The experts, organisations and market providers to speak to. We also highlight legal requirements, long-term commitments and market risks. 

Scheme options 

We look at three types of scheme and whether they can be combined. 

Frequently asked questions

FAQs for farmers and landowners about carbon markets.

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