Ecosystem Restoration Code: engagement paper

Engagement paper for the Scottish Government-NatureScot partnership project to develop an Ecosystem Restoration Code (ERC) for Scotland. The paper summarises key evidence on the operation and scope of potential nature / biodiversity markets in Scotland.


Footnotes

1 Landholdings in scope of the SG June Agricultural Census only.

2 The Scottish Approach to Service Design (SAtSD) - gov.scot

3 Scottish Forum on Natural Capital (SFNC)

4 Scotland's National Strategy for Economic Transformation - gov.scot

5 Natural Capital Market Framework - gov.scot

6 Scottish Biodiversity Strategy to 2045 - gov.scot

7 Biodiversity: delivery plan 2024 to 2030 - gov.scot

8 Investing in nature: a plan to support investment in biodiversity and climate adaptation in Scotland - gov.scot

9 Home - UK Woodland Carbon Code

10 Peatland Code | IUCN UK Peatland Programme

11 CivTech is the SG’s public sector focussed innovation accelerator: CivTech Scotland

12 Home - CreditNature

13 Convention on Biological Diversity - Background to the ecosystem approach

14 Home | Convention on Biological Diversity

15 CBD Ecosystem approach principles

16 Protected areas | NatureScot

17 Scottish Biodiversity Strategy to 2045 - gov.scot

18 Convention Text

19 Natural Asset Recovery Investment Analytics (NARIA): NARIA - CreditNature

20 State of voluntary biodiversity credit markets - Pollination | Climate Change Investment & Advisory Firm

21 BSI Flex 702 v1.0:2024-10 | 31 Oct 2024 | BSI Knowledge

22 IAPB Framework

23 Definition adapted from that used in the IAPB Framework

24 Nature Investment Programme | BSI

25 BSI Flex 701 v2.0 Nature Markets – Overarching Principles | BSI

26 BSI Flex 702 Supply of Biodiversity Benefits Specification | BSI

27 Principles for Responsible Investment in Natural Capital - gov.scot

28 Natural Capital Market Framework - gov.scot

29 1.6 Additionality - UK Woodland Carbon Code

30 Peatland Code V2.1 Web Final Jan 25.pdf

31 BSI Flex 702 Supply of Biodiversity Benefits Specification | BSI

32 IAPB Framework

33 Investing in nature: Developing ecosystem service markets for peatland restoration - ScienceDirect

34 Restoration and repair of Earth's damaged ecosystems

35 Biodiversity credits: Learning lessons from other approaches to incentivise conservation

36 Stacking and Bundling in Biodiversity Credit Markets — Environmental Policy Innovation Center

37 Stacking and bundling with nature credits – working paper (internal advice to SG and NatureScot)

38 Ten years of the compensatory mitigation rule: Reflections on progress and opportunities

39 A technological biodiversity monitoring toolkit for biocredits (wiley.com)

40 Natural Capital Market Framework - gov.scot

41 This is landholdings in scope of the SG June Agricultural Census only: Results from the Scottish Agricultural Census: June 2024 - gov.scot

42 Natural Asset Recovery Investment Analytics (NARIA): NARIA - CreditNature

43 CreditNature achieves accreditation from Accounting for Nature

44 Defined as powerful indirect interactions that can control entire ecosystems: Trophic Cascades Across Diverse Plant Ecosystems | Learn Science at Scitable and What is a Trophic Cascade? - ScienceDirect

45 Results from the Scottish Agricultural Census: June 2024 - gov.scot

46 Land reform - gov.scot

47 Natural Capital Market Framework - gov.scot

48 Unharvested Conservation Headlands for Wildlife

49 Ecological Focus Areas

50 Natural capital - market framework: engagement paper - gov.scot

51 IAPB Framework

52 State of voluntary biodiversity credit markets - Pollination | Climate Change Investment & Advisory Firm

53 Kunming-Montreal Global Biodiversity Framework

54 The Taskforce on Nature-related Financial Disclosures

55 The Science Based Targets Network (SBTN) - Science Based Targets Initiative

56 IAPB Framework

57 Biodiversity Credit Alliance (BCA) - Demand-side sources and motivation for biodiversity credits

58 World Economic Forum (WEF) - Biodiversity credits: Demand analysis and market outlook

59 CSRD could be relevant to EU headquartered corporates / FIs with a footprint (operations, value chains) in Scotland: Corporate sustainability reporting - European Commission

60 Although to note that the European Commission has recently proposed delayed corporate climate reporting rules by two years and reducing the scope of its application (increasing the eligibility threshold from 250 to 1000 employees): UPDATE – EU Commission proposes delaying corporate climate reporting rules by two years « Carbon Pulse

61 State of voluntary biodiversity credit markets - Pollination | Climate Change Investment & Advisory Firm

62 For example there are already over 100 distinct methodologies for calculating biodiversity credits, resulting in significant variation in how biodiversity outcomes are measured and reported: Woodland and Peatland Biodiversity Code Guidance Document_20240117.pdf

63 IAPB Framework

64 Biodiversity net gain - GOV.UK

65 Nuveen natural capital (Q1 2024 paper): Investing in biodiversity

66 Environment Bank | The biodiversity experts | BNG Habitat Bank specialists

67 Implementing statutory biodiversity net gain - NAO report

68 Biodiversity net gain - POST

69 IAPB Framework

70 The ‘Payment for Ecosystem Services’ approach - relevance to climate change

71 Nuveen natural capital (Q1 2024 paper): Investing in biodiversity

72 State of voluntary biodiversity credit markets - Pollination | Climate Change Investment & Advisory Firm

73 World Economic Forum (WEF) - Biodiversity credits: Demand analysis and market outlook

74 Bloomberg NEF Biodiversity Finance Factbook - Biodiversity COP 16 edition

75 World Economic Forum (WEF) - Biodiversity credits: Demand analysis and market outlook

76 Ibid

77 Nuveen natural capital (Q1 2024 paper): Investing in biodiversity

78 Biodiversity Credit Alliance (BCA) - Demand-side sources and motivation for biodiversity credits

79 Securing a green recovery on a path to net zero: climate change plan 2018–2032 - update - gov.scot

80 Knepp Wildland Carbon Project - Arup

81 Natural Capital Market Framework - gov.scot

82 Agricultural Reform Route Map

83 Sustainable and regenerative farming - next steps: statement - gov.scot

84 Scotland's National Strategy for Economic Transformation - gov.scot

85 Understanding the local economic impacts of natural capital investment - gov.scot

86 Natural capital: economic benefits assessment - gov.scot

87 Principles for Responsible Investment in Natural Capital - gov.scot

88 Natural Capital Market Framework - gov.scot

89 Delivering Community Benefits from Land

90 BSI Flex 701 v2.0 Nature Markets – Overarching Principles | BSI

91 Environment Bank presentation at Loch Lomond and the Trossachs National Park Authority (LLTNPA) Green Finance event, Park HQ Balloch, 23 January 2025.

92 An influential biodiversity market may not direct investment towards habitats of national importance

93 This would not mean that public expenditure on land use and NbS would be reduced – rather that available budgets could go further via blending with private finance.

94 Peatland Code Consultations | IUCN UK Peatland Programme

95 Fight the crises and invest in nature today

96 Scottish Government consultations - Citizen Space

97 A technological biodiversity monitoring toolkit for biocredits

98 SBS outcome wording has been abridged to save space. Please refer to the SBS for full wording of the outcomes: Scottish Biodiversity Strategy to 2045 - gov.scot

99 Peatland restoration and potential emissions savings on agricultural land: an evidence assessment

Contact

Email: PINC@gov.scot

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