Voluntary nature values market

Nature values market creates an economic incentive for nature protection and restoration. This is based on the idea that the ecosystem services produced by nature – clean air, water resources and biodiversity – have a financial value which the markets can identify and set a price on.

The State’s role is to create a reliable framework for the nature values market: establish criteria for the nature values to be produced, create a verification system for them, and enable the registration and permanence of the units. 

Through harmonised regulation and open data, the State can offer an environment to market operators where the risk of greenwashing is as small as possible. To minimise the risk of greenwashing, the Ministry of the Environment offers support for making nature-related claims by commissioning a process to produce a guide that illustrates the rules for this and practical examples of what the companies can say in their communication.

The development of the nature values market is regulated by EU law and international agreements, including the Kunming-Montreal Global Biodiversity Framework. The Ministry of the Environment develops the nature values market together with the private sector. 

Generation of natural values

The nature values are measured as hectares of sites with nature value. Hectares of sites with nature values are units that measure the increase in nature values in the area e.g. through restoration measures.

At present, hectares of sites with nature value can be used in voluntary ecological compensation under the Nature Conservation Act. Through ecological compensation, adverse impacts on biodiversity caused by human action in a certain area are offset by enhancing biodiversity in another area.

The Nature Conservation Act lays down detailed provisions on the procedures for generating nature values and on the criteria for voluntary ecological compensation. Besides offsetting the deterioration caused, in a well-functioning market the generation and sale of nature values would also include the measures to improve nature values for other purposes, such as demonstrating the environmental responsibility of a company

How can hectares of nature value be used for nature actions?

Hectares of nature value can be bought from the voluntary nature values market and used to make nature-related claims in the marketing of companies, products and services. A nature-related claim can be, for example, that the company has financed the restoration of 100 hectares of aapa mires.

According to chapter 11 of the Nature Conservation Act, hectares of nature value that are verified by the authorities can be generated. The calculation of the hectares of nature value is based on the additionality achieved by means of the offset measures, i.e. the difference between the state reached through the measures and the preceding state. Additionality is calculated on the basis of the best available scientific knowledge.

• Read more about the impacts of restoration measures in different habitat types | boostbiodeversityoffsets.fi
• Voluntary ecological compensation

The permanence of the nature values to be generated in accordance with the Nature Conservation Act is ensured by a decision by a public authority issued with the landowner’s consent that prohibits the destruction and deterioration of the site where the measures to enhance nature values have been implemented.

EU support to increase private financing

Finland participates in an analysis and development project of the EU that aims to find ways to increase private financing for biodiversity in the Member States. Finland’s participation in the project takes place under the EU Technical Support Instrument (TSI), which aims to improve the efficiency of the Member States’ administrations, build new skills and increase awareness of new topics and trends in the administration. The support under this project is used to explore the current situation of financing used for promoting biodiversity in Finland and the need for financing to meet Finland’s international and national biodiversity commitments. The project will also identify financial instruments and operating models that are suitable for Finland and through which especially private financing could be significantly increased.

• Read more at the European Commission website