Biodiversity crediting

The first phase of the biodiversity crediting project explored how biodiversity uplift could be measured, validated and monetised within the UK’s evolving nature markets. 

During the project, the team: 

• Developed a proposal for a scientifically rigorous biodiversity crediting methodology, aligning with best practices in biodiversity monitoring
• Conducted pilot studies to test the feasibility of biodiversity credit quantification using the proposed framework
• Worked with the UK Land Carbon Registry to explore crediting mechanisms
• Hosted a public consultation, receiving feedback from landowners, project developers and ecologists
• Collated the project outcomes and learnings to create a learning toolkit for those wishing to further develop or engage in nature finance mechanisms in the UK

The proposed framework for biodiversity quantification was presented to the Woodland Carbon Code and Peatland Code executive boards at the end of February 2025. 

Although the boards were in support of developing biodiversity crediting within the standards, they decided to look for funding to continue the research and development of this methodology.

The Peatland and Woodland Carbon Code teams have been awarded funding to continue this project. Phase 2 will build on previous work. We will:

• Collate and analyse data from pristine or restored woodland and peatland sites
• Refine and develop metrics, creating community similarity indices for some species groups, helping us to understand how community structures are changing and improving
• Use this data to calculate the biodiversity uplift of a project
• Review the costs and potential income from monitoring biodiversity uplift
• Create a roadmap for incorporating biodiversity crediting into the Woodland Carbon and Peatland Codes
• Provide template documents and improve the process to validate and verify biodiversity projects

While we continue to develop biodiversity metrics, projects can trial measuring their biodiversity baseline using the metrics developed in phase 1.

• Biodiversity quantification approach (Woodland Carbon Code methodology document)
• Biodiversity quantification approach (Peatland Code methodology document)
• Public consultation summary and feedback report
• Biodiversity metrics white paper
• Biodiversity methodology guidance document
• Independent validation report
• Learning toolkit to understand biodiversity metrics
• Measuring biodiversity from principles to practice webinar (March 2024)
• Biodiversity monitoring for a greener future knowledge sharing session (September 2024)
• Biodiversity accounting and the Woodland Carbon and Peatland Codes webinar - below (March 2025)

Both phases of this project are supported by NatureScot in collaboration with the Scottish Government and in partnership with the National Lottery Heritage Fund, through the Facility for Investment Ready Nature in Scotland.