The British Standards Institution (BSI) has launched the first version of an overarching principles standard for UK nature markets, the first in a suite of nature investment standards being developed with funding for the Department for Environmental, Food & Rural Affairs (DEFRA).
The standard – BSI Flex 701 Nature Markets – is now open for consultation, and is designed to enable the development of a set of principles and a common definition of nature investments, outlining requirements for the design and operation of high-integrity nature schemes, and processes to generate, trade and store nature units.
The standard is intended for use by all nature market participants, especially those involved in creating and trading nature units. As a foundational element in BSI’s Nature Investment Standards Programme, BSI said the principles “provide an essential reference point for further planned standards that address specific aspects of the market”, including biodiversity and natural carbon.
“Nature-based solutions have a central role to play in reaching net zero and meeting global environmental challenges. BSI is delighted to be publishing these overarching principles, which are designed to act as a key enabler of investment in nature markets,” Scott Steedman, director-general of standards at BSI, said.
“The specification is designed to bring clarity and consistency to the market by establishing a standardised approach for investments that can boost confidence in the integrity of nature markets. These newly agreed principles offer an essential foundation to help to guard against greenwashing, encourage investment into an important, emerging market and ultimately accelerate progress towards a sustainable world.”
The BSI Flex standard follows last year’s launch of the Nature Investment Standards Programme, in support of the UK government’s Green Finance Strategy and Nature Markets Framework to boost market confidence and increase private sector investment in nature recovery and nature-friendly farming.
As a BSI Flex, the principles are being developed iteratively so they can be refined over time as nature markets evolve and alongside emerging government policy. BSI said it welcomes comments and feedback on the first version, which forms the basis for further review, discussion and improvement.
Green finance minister, Lord Benyon, added: “Nature markets will play a crucial role in mobilising private finance for nature recovery. A strong policy framework will boost investor confidence in nature markets, creating the foundation for these markets to grow.
“As a government we have set out the next steps to close the nature funding gap in England and the creation of the Overarching Principles Standard is another important step towards meeting our goal to grow annual private investment flows for nature to more than £1bn per year by 2030.”
