In a significant push to bridge the global biodiversity funding gap, the European Commission officially launched the “Friends of Credits for Nature and Biodiversity” initiative at the 17th Conference of the Parties (COP 17) to the Convention on Biological Diversity (CBD) in Yerevan, Armenia.
The high-level event, co-hosted by the European Union, France, and Peru, marks a pivot toward innovative financing mechanisms designed to marry environmental preservation with private sector investment. Nature credits, the centerpiece of this initiative, are financial instruments that allow investors to fund the protection, restoration, and maintenance of ecosystems. In return, land managers—such as farmers and foresters—are rewarded for providing measurable, verified benefits to nature.
European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, emphasized that the initiative is intended to build international consensus on the credibility and scalability of these instruments.
“The Friends of Credits for Nature and Biodiversity will provide a platform for governments to cooperate internationally to foster credible investment that protects and preserves nature,” said Commissioner Roswall. “This is an opportunity for our businesses and nature: Nature credits will boost biodiversity and preserve habitats while generating revenue for those who work to protect nature and for investors.”
The coalition has seen rapid uptake, reflecting a growing global recognition that public budgets alone are insufficient to meet the ambitious targets set by the Kunming-Montreal Global Biodiversity Framework (GBF). Beyond the founding members—the EU, France, and Peru—the initiative has already attracted participation from a diverse array of nations including Finland, Luxembourg, the Netherlands, Portugal, Spain, Australia, Botswana, Canada, Chile, Indonesia, Japan, and New Zealand.
The initiative is designed to be inclusive, welcoming not just sovereign states but also key international organizations such as the Biodiversity Credit Alliance (BCA), the International Advisory Panel on Biodiversity Credits (IAPB), and the OECD. These bodies provide the technical and policy framework necessary to ensure that nature credits function with high integrity, avoiding the “greenwashing” pitfalls that have hindered other environmental markets.
The launch follows the July 2025 adoption of the “EU Roadmap towards Nature Credits,” which outlines the path for rigorous research, stakeholder consultation, and the deployment of pilot projects to test the viability of these markets. By making nature-positive actions more visible and investable, the EU hopes to mobilize the private finance sector to address the massive shortfall in conservation funding.
The EU’s commitment to biodiversity remains extensive, with an annual average of €1 billion directed toward international nature protection. Notable examples include the NaturAfrica initiative, which has mobilized €1.4 billion to support biodiversity conservation across the African continent. However, officials recognize that state-led funding must be complemented by market mechanisms to achieve global goals by 2030.
The work of this new “Friends” group will extend well beyond the conclusion of COP 17. The coalition is already planning to hold a side-event at the upcoming UNFCCC COP 31 on November 18, highlighting the inextricable link between nature conservation and climate change mitigation. As the initiative moves forward, member governments are expected to formalize their cooperation through a Joint Statement, cementing a collective commitment to creating a reliable, transparent, and effective global market for biodiversity credits.
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