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 were awarded funding to continue this project. Phase 2 built on previous work. During this phase we:

• Collated and analysed data from intact woodland and peatland sites to assess if this database could be used as an alternative to costly reference site surveys
• Explored a methodology to measure biodiversity uplift using a community similarity index, highlighting the benefits and limitations of this approach
• Suggested an alternative approach to measuring biodiversity that could be used where no reference site is available
• Explored the financial feasibility of incorporating biodiversity into the Woodland Carbon Code (see final report by Ricardo) and produced a tool that projects can use to calculate their financial breakeven point
• Created a roadmap for incorporating biodiversity crediting into the Woodland Carbon and Peatland Codes (outlined in the 'roadmap to completion' document)
• Summarised our findings in a public webinar

The 'roadmap to completion' document highlights the key steps to incorporating the biodiversity methodology into the Woodland Carbon Code and Peatland Code, and further funding has been sought to continue the research and development of this methodology. 

• 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)

• Reference site and biodiversity quantification methods
• Biodiversity reference database
• Metadata for biodiversity reference database
• Interactive map of biodiversity reference database
• Ricardo financial viability report
• Biodiversity financing tool (Woodland Carbon Code)
• Biodiversity financing tool (Peatland Code)
• Measuring biodiversity uplift for voluntary markets webinar - below (March 2026)

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.