Voluntary natural capital markets are a fast growing and promising commercial prospect for farmers and those interested in investing in and financing environmental change. Although the development of these markets has its ups and downs, EFG is here to help navigate through the noise and guide farmers and buyers to ensure high-integrity transactions on fair terms for all.
Soil Carbon
Soil is an incredible store of carbon and is one of the most immediate opportunities to help us meet our net zero targets. For farmers, changing farm practice can support on the journey to net zero as well as help reduce production costs. EFG has reviewed several different soil carbon methodologies with the support of an eminent soil scientist and is guiding Members and buyers on how to progress in this space.
The Woodland Carbon Code is a well-established code, trusted in England for trading carbon credits. EFG is working with Zulu Ecosystems to aggregate projects of all sizes to reduce costs and increase the commercial opportunity of planting new woodland. Together, we are also exploring other routes to market. Although the carbon benefit is not realised until the woodland matures, woodland offers a long-term prospect for farmers and buyers alike.
Woodland Carbon
Water
Water is essential for life and our watercourses are frequently overexploited. Farmers can provide multiple services relating to water. Whether that is improving water quality through improved management of watercourses, increasing how much water is held by the land to protect against drought or through offering interventions to reduce the risk of flooding through Natural Flood Management. EFG continues to speak with other leading players in this space to develop new opportunities for farmers.
The necessity to improve the health of the natural world underpins society. Nature markets are nascent but can potentially have an enormous benefit for delivering environmental change. As farm subsidies subside, the government is encouraging nature recovery through private finance. Companies are beginning to measure nature’s impact on their business as well as their business’ impact on nature and it is expected that this exercise will begin to drive delivery of environmental benefit. EFG has worked with Oxbury Bank on an assessment of these markets and how they will develop.
Nature