Generation of natural values

The generation of natural values has seven stages, three of which are related to drawing up the offset plan and the last one to their utilisation.

A landowner can generate natural values in two ways, either by implementing offset measures or by the avoided loss offset, which means conserving permanently a site representing a threatened habitat type that is representative in terms of its natural state. Stages 2 and 3 do not apply to the avoided loss offset, but the Centre for Economic Development, Transport and the Environment gives a statement on the natural values to be generated and their quality directly.

1. Identification of habitat types in land areas

The generation of natural values starts by identifying the habitat types where the status needs to be improved in the land area. Natural values can also be generated by improving a habitat of a rare species. Mostly this would concern e.g. a species subject to special conservation measures or a species of European Union interest referred to in the Nature Conservation Act, excluding game animal species. 

2. Assessment of the status of the habitat types

The status of the identified habitat types and habitats is assessed on a ten-step scale from 0 to 1, where 1 represents a site that is in its natural state or a state comparable to this and 0 is a site that has lost its natural state. The assessment of the natural state is based on the key characteristics of the habitat type concerned. Read more in section 2 of the Decree of the Ministry of the Environment on Voluntary Ecological Compensation.

The best additionality can be achieved by improving deteriorated sites that still have enough characteristics of the habitat type (or habitat of a species) left.

The status of the habitat type and habitat is expressed as hectares of natural value, i.e. as an equation of the surface area and the quality of the site [natural value hectare (nvh) = surface area x site status (0-1)].

3. Drawing up a plan on the necessary measures and improvement in the status set as the target

The party planning to generate natural values draws up or commissions the drawing up of an offset plan that indicates:

  • information on the site to be used in offsetting (offset site), its natural values and their status prior to the offset measures;
  • information on the natural values to be improved, the desired status and the offset measures to implement the improvement of natural values;
  • timeframe for the performance of the offset measures;
  • information on the monitoring of the implementation of the offset measures;
  • assessment of the risks relating to the implementation of the offset measures and a plan for preparing for them and for alternative implementation methods;
  • information on the practical implementer of the fundamental measures and the implementer’s qualification for the role.

The key content of the offset plan are the offset measures by which the estimated status of the habitat type (habitat of a species) is to be improved towards the natural state. These measures are specific to the habitat type in question. An offset measure may involve e.g. blocking the ditches of a drained mire that will restore the hydrological balance of the mire towards a more natural one and enable the rehabilitation of flora and fauna typical of the habitat type.

Example of offset measures for different kinds of habitat types are available in a report published by the Finnish Environment Institute.

Avoided loss offset takes place by conserving permanently a site representing a threatened habitat type that is representative in terms of its natural state.

4. Application to the Centre for Economic Development, Transport and the Environment on a statement to be given

A statement is requested from the Centre for Economic Development, Transport and the Environment before implementing the measures.

The purpose of this is to verify the initial status of the site and that, as the authority sees it, the plan is in compliance with the available scientific knowledge of the benefit to be achieved with the planned measures. The natural values to be generated are defined qualitatively as hectares of natural value of the habitat type in question. The Centre for Economic Development, Transport and the Environment may ask the applicant to supplement the plan if there are any shortcomings, such as unidentified risks.

The same plan may include the generation of natural values for more than one habitat type and species if it concerns a single integrated area, independent of property boundaries. It is also possible for more than one landowner to file a joint application concerning several properties. In this case one of the applicants represents all landowners, with their consent.

The Centre for Economic Development, Transport and the Environment provides notification of the statement on the offset plan to the municipality and regional council where the site is located so that they are aware of the offset plan when making land use plans.
In the case of avoided loss offsets, the Centre of the Economic Development and the Environment gives a statement on the natural values to be generated and their quality that will be verified later on.

5. Implementation of measures according to the plan 

The landowner can implement the offset measures included in the plan after having received the statement of the Centre for Economic Development, Transport and the Environment. Any changes during the implementation must be recorded.

6. Application to the Centre for Economic Development, Transport and the Environment concerning natural values to be generated and their quality

When the measures have been implemented, the landowner can apply for a statement from the Centre for Economic Development, Transport and the Environment concerning the quantity and quality of the natural values generated by the offset measures. This statement verifies how many hectares of each natural value the measures have generated. With respect to avoided loss offsets, this statement is given on the basis of the offset plan. 

Read more in section 4 of the Decree of the Ministry of the Environment on Voluntary Ecological Compensation.

On the application of the landowner, the reference number, natural values to be generated (habitat type / species), number of natural value hectares and municipality where they are located are entered to the publicly available register. Personal data or identification data of properties are not published in the register. A landowner can request the data to be removed from the register.

7. Selling natural values

A landowner can sell the natural values generated at the set price to a party wishing to use them for offsetting deterioration. A landowner can also decide not to use the site for offsetting until a contract has been concluded on passing them on to be used for offsetting. The owner of natural values may change several times before they are used.

When the natural values to be generated are used for offsetting deterioration, the Centre for Economic Development, Transport and the Environment makes a decision on the prohibition of destruction and deterioration concerning the offset site, and information on the use of the natural value hectares used for the offsetting is entered to the register. If the offsets that have been generated exceed what is needed to offset the deterioration, the landowner can sell the remaining natural value hectares for offsetting deterioration elsewhere.