EU Unveils 'Nature Credits' To Boost Eco-Incentives

The European Union plans to introduce 'nature credits' as an incentive system for farmers and foresters to safeguard ecosystems. This aims to economically benefit such environmental efforts without additional public spending, and involves developing methodologies and pilot projects for credits by 2027.

The European Union is moving forward with plans to develop 'nature credits' that would incentivize farmers and foresters to protect and maintain ecosystems. The aim is to render these crucial environmental duties more economically viable, announced the European Commission on Monday.

Faced with a financial shortfall in biodiversity funding, and public budgets already stretched by other commitments such as defense, the EU is exploring alternative pathways to bolster funding without additional strain on its fiscal resources. The Commission noted a 37-billion-euro annual deficit in required biodiversity funding as a pressing concern.

Set to be deliberated upon by an expert group comprising of government officials, farmers, scientists, and local community leaders, these 'nature credits' are envisioned as a way for companies or countries to purchase credits from those actively engaged in conservation efforts, such as wetland restoration or regenerative agriculture. The Commission plans to implement a pilot project by 2027.

(With inputs from agencies.)