Nature markets are becoming an increasing area of interest as businesses look to manage nature-related risks, strengthen resilience and create long-term value. As carbon markets regain momentum – with interest renewed by agreement of the Article 6 mechanisms under the UNFCCC (UN Framework Convention on Climate Change) and the approach of 2030 net-zero commitments – organisations are also turning their attention to nature as a source of resilience, value creation and environmental impact.

Interest in nature markets has been driven by:

  • growing scrutiny of the effectiveness and governance of carbon markets;
  • a better understanding of organisational dependencies on nature, particularly through supply chains;
  • the emergence of mandatory nature markets in certain sectors; and
  • recognition that nature restoration and conservation can deliver multiple benefits, including carbon capture / storage, resilience and improved ecosystem services.

Mandatory nature markets, such as biodiversity net gain (BNG) in England, have helped bring biodiversity and habitat issues into boardroom discussions. They have created a new asset class and supported the growth of adjacent industries, from habitat banking and data to ecology, legal and brokerage services. They have also created frameworks and governance principles for measurable, durable habitat improvements. As a result, organisations outside of mandatory schemes are increasingly exploring voluntary nature markets as they consider how to meet broader sustainability goals.

This article explores why voluntary nature markets are gaining attention, what businesses can learn from England's mandatory markets and how those lessons can guide organisations entering emerging environmental markets.

Why voluntary nature markets are attracting attention

Biodiversity loss, water use and ecosystem health are being considered together as organisations assess nature-related impacts, dependencies, risks and opportunities across global supply chains. This matters particularly for businesses with large operational footprints or reliance on natural resources, including those operating in real estate and construction, fashion, food and drink, advanced manufacturing and technology. Frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) are also helping organisations assess, disclose and manage nature-related issues, providing structured guidance.

This broader focus is increasing interest in voluntary carbon and nature markets as companies pursue sustainability, resilience and growth while responding to expectations from employees, customers, communities, investors and lenders. Nature as an asset class is evolving and organisations are embracing opportunities, with funding for nature restoration and conservation typically involving:

  • committing to habitat gains beyond statutory or policy minimums;
  • investing in habitat banks or businesses providing services to the sector; or
  • funding nature-based projects that improve water quality or reduce flood risk, either by financing all or part of a project or by purchasing certificates or credits.

Projects may be localised to an organisation's operational footprint, tailored to a specific impact or dependency identified through assessment and disclosure, or aligned with broader corporate Environmental Social Governance (ESG) commitments.

In some sectors, carbon-credit procurement is becoming a higher priority as standards and wider reforms develop and companies seek to meet net-zero targets. The carbon offtake market is growing rapidly, with agreements increasingly structured as emission reduction purchase agreements (ERPAs), often on a forward-purchase basis: a buyer commits to purchasing credits expected to be generated and delivered over future periods, giving the project developer greater revenue certainty or access to upfront finance rather than relying solely on spot purchases of already-issued credits. This reflects demand for high-integrity, well-managed projects with robust governance and durable outcomes. Measurement remains central: the Verified Carbon Standard (VCS), administered by Verra, is one mechanism for measuring, validating and verifying project outcomes.

Contractual detail matters for investors in these projects, including eligibility and quality criteria, delivery schedules, pricing, issuance and retirement arrangements, and remedies for delayed, under-delivered or substandard credits. We explore the current market standards and key considerations to managing carbon credit procurement with confidence in our follow-on article on the practical and legal considerations for businesses entering into these markets.

Carbon-focused projects may also deliver biodiversity gains, and nature-based carbon projects can provide a bridge between carbon and nature markets: reforestation, peatland restoration and mangrove protection inherently offer co-benefits alongside carbon outcomes, including habitat restoration, species support, water and soil protection, and improved resilience. The quality and durability of those co-benefits depend on project design and delivery, and buyers are increasingly looking beyond tonnage to quality, governance and wider biodiversity and community benefits.

Demonstrable co-benefits can therefore be a key market differentiator. Nature can also be easier for stakeholders to see and understand than carbon alone: a restored habitat or newly created woodland makes environmental action tangible. Nature is more complex than carbon to measure, but frameworks and standards are evolving and corporate and private-capital interest is growing.

What can voluntary nature markets learn from England's mandatory markets?

England’s mandatory markets have given developers practical experience of nutrient neutrality and BNG. In catchments affected by high nutrient levels, housebuilders have secured nutrient-offset credits from landowners – typically farmers – who change land management to reduce nutrient leaching into rivers.

BNG requires new developments to leave biodiversity in a measurably better state, currently at least a 10% gain against the pre-development baseline. It operates within the legal framework established by the Environment Act 2021 and is being extended to Nationally Significant Infrastructure Projects (NSIPs) – a change that will take effect from 2 November 2026.

Biodiversity can become a boardroom issue

Mandatory markets have moved biodiversity from a niche planning concern to a board-level strategic issue – and helped establish it as an investable asset class.

Once treated mainly as an environmental or planning matter, biodiversity is now part of senior decision-making; particularly in development, infrastructure, energy and land-based businesses. Investment funds and lenders are increasingly treating nature-related opportunities and risks as relevant to capital allocation.

Organisations within mandatory markets must decide how their activities affect biodiversity, what can be avoided or reduced, how required gains will be delivered and whether delivery should take place on site or through biodiversity units bought in the open market. They must also consider whether those gains will be robust over the long term.

These decisions have moved biodiversity beyond specialist teams into strategy, project delivery and risk management. They have also driven growth in off-site delivery through habitat banks supplying biodiversity units and nutrient-neutrality credits. As BNG extends to NSIPs, this market is likely to grow and develop more bespoke habitat creation.

Clear frameworks help businesses act

England’s mandatory markets show that businesses adapt when expectations are clear and there is a practical route to compliance.

Organisations have developed new approaches, built expertise and incorporated biodiversity into decision-making, while landowners, developers and other participants have adapted to new roles and opportunities.

Although BNG was created for a specific part of the English planning system, it provides a useful blueprint for other sectors. The response will vary across industries, but the underlying lesson is the same: clear expectations and workable frameworks can turn an environmental objective into business action.

Nature needs credible measurement

Carbon is far easier to measure and compare between projects than nature, which is multi-dimensional and influenced by factors such as habitat, location and local conditions.

As biodiversity methodologies and verification systems improve, including through AI and technology more generally, organisations can better assess the outcomes projects are designed to deliver and test how additionality will be demonstrated. This matters because investors and wider stakeholders want to understand how organisations are meeting environmental commitments, managing risks and creating positive impacts.

BNG shows the value of an agreed approach to measuring environmental change. The VCS also illustrates how a recognised standard can support measurement, validation and verification. Voluntary nature markets will not necessarily follow either model, but credible and consistent measurement will be central to their development.

A market needs more than environmental ambition

Interest alone does not create a functioning market. Participants need a clear route to market and confidence that environmental outcomes are real, measurable and deliverable.

BNG combines a defined objective with measurement, registration and routes to deliver gains, while giving landowners and investors visibility over commercial opportunities. As a model, it demonstrates that businesses can adapt to nature-related requirements and provides a blueprint which other sectors and non-compulsory schemes might follow.

As voluntary markets evolve, businesses will scrutinise how benefits are measured, verified and delivered – not only what is promised.

Why confidence matters in voluntary nature markets

Voluntary markets require a credible path from ambition to delivery. Organisations investing in nature-based projects need confidence that claims are supported by evidence and that outcomes can be delivered over time.

Due diligence should test governance, financial security, delivery mechanisms and long-term management. Choosing the right implementation partner is equally important: the partner must be able to manage outcomes, measure impact and address delivery risk. Stakeholders will also expect credible frameworks and recognised standards.

Transparent verification and consistent measurement will support confidence, growth and wider adoption.

How nature markets fit into business strategy

Nature markets are still developing, but organisations are increasingly considering how biodiversity, carbon and natural resources fit together.

The starting point is an organisation’s own impacts and objectives. Any nature-based project should sit within, not apart from, its wider sustainability strategy: it should address a relevant impact, support a clear priority and form part of a credible plan.

BNG in England provides a proven example of biodiversity becoming part of mainstream business decision-making. It also shows that organisations and sectors can change how they operate when they have clear requirements and practical ways to respond.

Voluntary nature markets differ from BNG, but many of the same foundations will matter: clear frameworks, robust due diligence and risk management, credible measurement and confidence that environmental outcomes can be delivered.

As businesses increasingly turn their focus to voluntary carbon and nature markets, the lessons from BNG can help them understand these markets and what's required for growth. Those that engage early in this rapidly evolving area – using clear frameworks, credible measurement and robust governance – will be best placed to manage risk, identify opportunity and participate as these markets mature.

Our Natural Capital team is fully immersed in the developments around sustainability and biodiversity, and works with clients from all sectors to help them navigate the forces shaping their world. Explore our Natural Capital team and expertise, or contact Ben Stansfield or James Stanier to discuss what voluntary nature markets could mean for your organisation. The team advises across BNG, carbon markets and wider nature-related matters.

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