Nature Market Explainer
Welcome to the Nature Market Explainer, an interactive introductory guide designed to show how nature-based solutions work in practice across the UK. Using our Uplands and Lowlands landscape models, you can filter through different markets, including Biodiversity, Carbon, and Natural Flood Management, to see how specific on-farm features contribute to these emerging opportunities. Simply click on the highlighted areas to explore how various habitats generate value and learn more about the role that land can play in these markets.
Land managers can be paid to remove carbon dioxide from the atmosphere long-term into soils or vegetation. In the case of peatland, they can be paid for actions that avoid greenhouse gases from being emitted to the atmosphere as a result of its ongoing degradation. Organisations can buy these carbon ‘credits’ to offset greenhouse gas emissions that they are unable to remove from their own activities and supply chains.
In England, Biodiversity Net Gain (BNG) means that developers must, by law, demonstrate how they will achieve a minimum 10% enhancement in biodiversity before their development can proceed. The gain is calculated using a standardised statutory biodiversity metric. BNG can be provided on site, but many choose to do this at other public registered locations in England, although the metric incentivises offsite delivery in the vicinity of the development. To learn more about Biodiversity Net Gain please click here.
In some parts of the UK, land managers are preparing to sell voluntary biodiversity credits to businesses that want to restore biodiversity in ways that they can report. The units can be as small as a 3 x 3 metre land area.
This is the use of natural features to slow the passage of water towards watercourses after heavy rainfall. Public bodies and private businesses pay landowners to reduce flood risk to settlements or built infrastructure. In some cases, NFM may work on its own. In other cases, it is an important supplement to concrete or steel food defences.
Woodland and forestry
Whether planted primarily for environmental reasons or for timber production, this land use is an important carbon store. Woodland and forestry are permanent land use changes. Carbon is held in both the trees above ground as well as in the soils below. It is also possible to manage existing woodlands in ways that increase their biomass and thereby remove more carbon dioxide from the atmosphere. Learn more from The Woodland Carbon Code.
Mixed farm
Use of minimum tillage techniques means that the soil structure is disturbed much less. This reduces the loss to the atmosphere of carbon that is naturally stored in the soil. Alongside actions such as the planting and thickening of hedgerows, farms can generate carbon credits. A farm can create a ‘net-positive’ land holding in which the soil and vegetation remove more carbon dioxide from the atmosphere than the equivalent amount of greenhouse gas is emitted by farming activity. Learn more from the UK Carbon Code of Conduct.
Wetlands
In lowlands and coastal areas, wetlands include features such as fen, rewetted peatland, reedbed and saltmarsh. The restoration of wet habitats can remove carbon dioxide from the atmosphere because of the biological activity that takes place. Wetland may be attractive to organisations looking for carbon credits alongside biodiversity and flood risk reduction (including coastal resilience). Learn more from The Wildfowl & Wetlands Trust.
Biochar
This is a material derived from plant waste, including that produced on farms. A process called pyrolysis converts biomass into a stable, carbon-rich material that does not easily decompose. Biochar can be applied on farms to improve the condition of soil. Biochar production can provide carbon credits. Learn more from the UK Biochar Research Centre.
Woodland
Lowland woodland has the potential to be particularly high in biodiversity value. By connecting groups of trees across landscapes, it is possible to achieve more nature recovery. Woodland along waterways can provide a particularly high level of biodiversity and water quality benefit. To learn more above how native woodlands are important for biodiversity, visit Woodland Trust guidance. See information also provided by the Woodland Water Code.
Chalk streams and rivers
These are rare habitat globally. The majority are in Southern England. The restoration of these streams allows for the reintroduction and protection of species native to the UK, including Atlantic salmon, Sea trout, and otters. Restoring these streams allows landowners to sell relatively high-value Biodiversity Units to property developers. Learn more from the Chalk Stream Strategy.
Wetland
Wetlands serve a critical role in coastal areas, improving the quality of water passing through them to the see, and providing places for fish to reproduce. They are established through the removal of sea defence inland and allowing the tide to naturally flood an area. Learn more about how wetland creation in costal habitats can deliver biodiversity value here.
Lowland peat
Converting low-grade or less productive agricultural land into wildflower meadows prevents soil loss and creates a habitat for rare species to re-emerge. This increase in biodiversity, translates directly into more saleable Biodiversity Units.
Species rich grassland/meadows
Converting intensive arable land into a traditional wildflower meadow is one of the fastest ways to generate Biodiversity Units. The biodiversity ‘baseline’ (starting point) for a ploughed field is low.
Dunes
Dunes protect inland coastal areas from disruption from storms while also providing habitat for relatively rare flora and fauna. Removal of invasive species and restoration of dunes creates a significant increase in biodiversity. Due to the rarity of this habitat, Biodiversity Units can be particularly sought after by property developers in coastal areas. To learn more about dunes and how they relate to Biodiversity Net Gain, see the Dynamic Dunescapes project.
Bund/Ditches
In flat lowland areas, the creation of small bunds (linear earth mounds) or ditches on farmland can reduce the risk of flooding in a nearby settlement or property. Often, groups of land managers will need to work together to deliver the appropriate level of risk reduction.
Learn more from the Natural Flood Management Manual.
Floodplains
Some farmland can be managed in ways that allow for more seasonal inundation of from rivers and streams when they become full. This increases the water storage capacity of the landscape. Farmers will expect remuneration for this as it affects their capacity to produce food and requires careful management. Learn more in a Guide from Scotland’s Rural College.
Woodland
In lowland and coastal landscapes, tree planting in strategic locations can slow the passage of rainwater into water courses and towards settlements and built infrastructure. In certain river catchments, landowners can work together to plant trees in locations that will make a measurable difference in reducing flood risk. They can then sell the flood risk reduction service to groups of public bodies and private businesses that are at risk. Learn more from the Natural Flood Management Manual.
Peatland
Peat is the UK’s largest natural store of carbon at the land surface. Actions such as blocking of old drainage ditches and reshaping of damaged peat surfaces help to restore peatland. They stop it drying out and eroding. Alongside many other benefits, restoration of peatland is greenhouse gas emissions avoidance. Learn more from the Peatland Code.
Mixed farm
Carbon credits can be generated by considering the whole of a farm property and not just individual features such as woodland or soils. A farm can create a ‘net-positive’ land holding in which soils, wetland and vegetation remove more carbon dioxide from the atmosphere than the equivalent amount of greenhouse gas is emitted by farming activity. Learn more from the UK Carbon Code of Conduct.
Woodland and forestry
Whether planted primarily for environmental reasons or for timber production, this land use is an important carbon store. Woodland and forestry are permanent land use changes. Carbon is held in both the trees above ground as well as in the soils in which they grow. Following planting and validation with the Woodland Carbon Code and during the early years of growth, carbon credits can be sold as ‘Pending Issuance Units’. As the trees mature, the carbon stock can be measured, verified, and converted to ‘Woodland Carbon Units’. If the trees are converted into timber, this can provide an additionallong-term store of carbon. Learn more from the Woodland Carbon Code.
Woodland
Upland mixed deciduous woodland provides important habitat for birds and other animals. By reducing the movement of livestock and allowing trees to naturally regenerate it may be possible to create Biodiversity Units for sale. To learn more visit the Forestry Commission’s Guide to Upland Woodland.
River
Biodiversity can be improved through actions such as the restoration of natural curves in the river channel and the removal of man-made barriers to the passage of fishes. The reintroduction of native vegetation along the banks (or riparian buffers) prevents soil erosion and runoff and improves water quality. These actions combined create a ‘premium’ Biodiversity Unit because these habitats are increasingly rare.
Peat/species rich grassland
Transitioning from monoculture grass into a mix of native wildflowers and herbs establishes a ‘premium’ habitat that attracts insect pollinators and birds. This increased diversity in habitat type creates a Biodiversity Unit that a farmer or landowner can sell to a developer required to achieve Biodiversity Net Gain. The Nature Friendly Farming Network provides further information.
Peat
Acting as a ‘sponge’, this habitat holds water after heavy rainfall. Restored peatland is much more effective at this. It can hold back water that would otherwise travel more rapidly downhill towards settlements or built infrastructure. This can be calculated in detail. See the guidance from the IUCN UK Peatland Programme.
Woodland
Trees and other vegetation intercepts rainfall. Woodland can retain water and slow its passage towards streams and rivers. This can be calculated in detail. Learn more from the Natural Flood Management Manual.
Bunds/Ditches
These are small, strategic earth-banks that catch water run-off. They don’t stop the water flow all together. Instead, they hold water after heavy rainfall and release it slowly, thereby reducing peak river flow downstream. Learn more from the Natural Flood Management Manual.
1. Woodland and forestry
Whether planted primarily for environmental reasons or for timber production, this land use is an important carbon store. Woodland and forestry are permanent land use changes. Carbon is held in both the trees above ground as well as in the soils below. It is also possible to manage existing woodlands in ways that increase their biomass and thereby remove more carbon dioxide from the atmosphere. Learn more from The Woodland Carbon Code.
2. Mixed farm
Use of minimum tillage techniques means that the soil structure is disturbed much less. This reduces the loss to the atmosphere of carbon that is naturally stored in the soil. Alongside actions such as the planting and thickening of hedgerows, farms can generate carbon credits. A farm can create a ‘net-positive’ land holding in which the soil and vegetation remove more carbon dioxide from the atmosphere than the equivalent amount of greenhouse gas is emitted by farming activity. Learn more from the UK Carbon Code of Conduct.
3. Wetlands
In lowlands and coastal areas, wetlands include features such as fen, rewetted peatland, reedbed and saltmarsh. The restoration of wet habitats can remove carbon dioxide from the atmosphere because of the biological activity that takes place. Wetland may be attractive to organisations looking for carbon credits alongside biodiversity and flood risk reduction (including coastal resilience). Learn more from The Wildfowl & Wetlands Trust.
4. Biochar
This is a material derived from plant waste, including that produced on farms. A process called pyrolysis converts biomass into a stable, carbon-rich material that does not easily decompose. Biochar can be applied on farms to improve the condition of soil. Biochar production can provide carbon credits. Learn more from the UK Biochar Research Centre.
1. Woodland
Lowland woodland has the potential to be particularly high in biodiversity value. By connecting groups of trees across landscapes, it is possible to achieve more nature recovery. Woodland along waterways can provide a particularly high level of biodiversity and water quality benefit. To learn more above how native woodlands are important for biodiversity, visit Woodland Trust guidance. See information also provided by the Woodland Water Code.
2. Chalk streams and rivers
These are rare habitat globally. The majority are in Southern England. The restoration of these streams allows for the reintroduction and protection of species native to the UK, including Atlantic salmon, Sea trout, and otters. Restoring these streams allows landowners to sell relatively high-value Biodiversity Units to property developers. Learn more from the Chalk Stream Strategy.
3. Wetland
Wetlands serve a critical role in coastal areas, improving the quality of water passing through them to the see, and providing places for fish to reproduce. They are established through the removal of sea defence inland and allowing the tide to naturally flood an area. Learn more about how wetland creation in costal habitats can deliver biodiversity value here.
4. Lowland peat
Converting low-grade or less productive agricultural land into wildflower meadows prevents soil loss and creates a habitat for rare species to re-emerge. This increase in biodiversity, translates directly into more saleable Biodiversity Units.
5. Species rich grassland/meadows
Converting intensive arable land into a traditional wildflower meadow is one of the fastest ways to generate Biodiversity Units. The biodiversity ‘baseline’ (starting point) for a ploughed field is low.
6. Dunes
Dunes protect inland coastal areas from disruption from storms while also providing habitat for relatively rare flora and fauna. Removal of invasive species and restoration of dunes creates a significant increase in biodiversity. Due to the rarity of this habitat, Biodiversity Units can be particularly sought after by property developers in coastal areas. To learn more about dunes and how they relate to Biodiversity Net Gain, see the Dynamic Dunescapes project.
1. Bund/Ditches
In flat lowland areas, the creation of small bunds (linear earth mounds) or ditches on farmland can reduce the risk of flooding in a nearby settlement or property. Often, groups of land managers will need to work together to deliver the appropriate level of risk reduction.
Learn more from the Natural Flood Management Manual.
2. Floodplains
Some farmland can be managed in ways that allow for more seasonal inundation of from rivers and streams when they become full. This increases the water storage capacity of the landscape. Farmers will expect remuneration for this as it affects their capacity to produce food and requires careful management. Learn more in a Guide from Scotland’s Rural College.
3. Woodland
In lowland and coastal landscapes, tree planting in strategic locations can slow the passage of rainwater into water courses and towards settlements and built infrastructure. In certain river catchments, landowners can work together to plant trees in locations that will make a measurable difference in reducing flood risk. They can then sell the flood risk reduction service to groups of public bodies and private businesses that are at risk. Learn more from the Natural Flood Management Manual.
1. Peatland
Peat is the UK’s largest natural store of carbon at the land surface. Actions such as blocking of old drainage ditches and reshaping of damaged peat surfaces help to restore peatland. They stop it drying out and eroding. Alongside many other benefits, restoration of peatland is greenhouse gas emissions avoidance. Learn more from the Peatland Code.
2. Mixed farm
Carbon credits can be generated by considering the whole of a farm property and not just individual features such as woodland or soils. A farm can create a ‘net-positive’ land holding in which soils, wetland and vegetation remove more carbon dioxide from the atmosphere than the equivalent amount of greenhouse gas is emitted by farming activity. Learn more from the UK Carbon Code of Conduct.
3. Woodland and forestry
Whether planted primarily for environmental reasons or for timber production, this land use is an important carbon store. Woodland and forestry are permanent land use changes. Carbon is held in both the trees above ground as well as in the soils in which they grow. Following planting and validation with the Woodland Carbon Code and during the early years of growth, carbon credits can be sold as ‘Pending Issuance Units’. As the trees mature, the carbon stock can be measured, verified, and converted to ‘Woodland Carbon Units’. If the trees are converted into timber, this can provide an additionallong-term store of carbon. Learn more from the Woodland Carbon Code.
1. Woodland
Upland mixed deciduous woodland provides important habitat for birds and other animals. By reducing the movement of livestock and allowing trees to naturally regenerate it may be possible to create Biodiversity Units for sale. To learn more visit the Forestry Commission’s Guide to Upland Woodland.
2. River
Biodiversity can be improved through actions such as the restoration of natural curves in the river channel and the removal of man-made barriers to the passage of fishes. The reintroduction of native vegetation along the banks (or riparian buffers) prevents soil erosion and runoff and improves water quality. These actions combined create a ‘premium’ Biodiversity Unit because these habitats are increasingly rare.
3. Peat/species rich grassland
Transitioning from monoculture grass into a mix of native wildflowers and herbs establishes a ‘premium’ habitat that attracts insect pollinators and birds. This increased diversity in habitat type creates a Biodiversity Unit that a farmer or landowner can sell to a developer required to achieve Biodiversity Net Gain. The Nature Friendly Farming Network provides further information.
1. Peat
Acting as a ‘sponge’, this habitat holds water after heavy rainfall. Restored peatland is much more effective at this. It can hold back water that would otherwise travel more rapidly downhill towards settlements or built infrastructure. This can be calculated in detail. See the guidance from the IUCN UK Peatland Programme.
2. Woodland
Trees and other vegetation intercepts rainfall. Woodland can retain water and slow its passage towards streams and rivers. This can be calculated in detail. Learn more from the Natural Flood Management Manual.
3. Bunds/Ditches
These are small, strategic earth-banks that catch water run-off. They don’t stop the water flow all together. Instead, they hold water after heavy rainfall and release it slowly, thereby reducing peak river flow downstream. Learn more from the Natural Flood Management Manual.