The table below summarises the main pros and cons of each Ecosystem Market as well as giving a brief overview. See the individual web pages for further information.
| Funding stream | Requirements and restrictions | Pros | Cons | Further info |
|---|---|---|---|---|
| Biodiversity Net Gain | Upfront costs for land management and ecological baselining Habitats must be legally secured for at least 30 years Monitoring, management, and reporting for 30-year period. Sites must be registered on NE national sites register Certain bundling and stacking restrictions | Funding secured for 30 years = sustainable funding source. Additional units can be sold after 30 years. Likely high demand, and initial low supply = seller’s market. There is no regulatory restraint on unit pricing. Key funding stream for the LCR LNRS. Can be stacked with nutrient credits. | Ties up land use for 30 years. Unestablished- some uncertainty of costs and returns. Can’t be stacked with carbon units. Enforcement possible. | For LCR-specific advice see: MEAS website or Defra website Biodiversity net gain UK Gov website. Refer to BNG market page for more detail. |
| Woodland Carbon Code (WCC) | Landowners and successors commit to a permanent woodland. Initial tree planting gives ‘Pending Issuance Units’, which, can be verified and converted into ‘Woodland Carbon Units’ when the trees reach year 10. Regular monitoring Units must be registered with the UK Land Carbon Registry. WCC carbon units are currently sold as a bundle of associated ecosystem services. | WCC is a fully accredited and independently verified carbon standard and market. All projects are listed in the UK Land Carbon Registry and recorded on the HIS Market Carbon Meta-Registry. | Commits land to woodland use in perpetuity (including any successors of the land title) Can’t be stacked with BNG units. | Understand habitat carbon capture at Carbon Storage and Sequestration by Habitat 2021 – NERR094 See Home – UK Woodland Carbon Code or the Carbon markets page |
| Peatland Code (PC) | Voluntary standard that allows owners of degraded peatlands to restore these using funds from ‘carbon units’ sold to private buyers. Units are currently sold as a bundle, in which other associated ecosystem services are included. | Peatland habitats hold the largest carbon stores of all UK habitats. When in healthy condition they can sequester carbon indefinitely. PC is a fully accredited and independently verified carbon standard and market. All projects are listed in the UK Land Carbon Registry and recorded on the HIS Market Carbon Meta-Registry. | Can’t be stacked with BNG units. Likely to be tied in perpetuity or very long term – limits land use. | See the Carbon markets page , or the Peatland Code | IUCN UK Peatland Programme Further information on peatland as carbon stores. |
| Natural flood management (NFM) | Close working with the Environment Agency and Regional Flood and Coastal Committee. River-related flood risk is normally location-specific, so revenue opportunities will be based on the convergence of interests by specific beneficiaries e.g. insurers, local authorities, transport infrastructure providers, water utilities. | NFM is currently attracting grant funding and many RFCCs are looking to use this and other nature-based solutions. | See the Wyre catchment NFM project case study NFM is currently attracting grant funding and many RFCCs are looking to use this and other nature-based solutions. |
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| Nutrient Neutrality credits | Nutrient credit market developed around specific regions of concern- not a mandatory regulation. Currently, the Liverpool City Region is not in a nutrient neutrality zone. Credits can be stacked with biodiversity units. | Can be stacked with biodiversity units. | No requirement within the LCR currently. | Nutrient Neutrality Generic Methodology – NECR459 https://www.push.gov.uk/wp-content/uploads/2022/04/Nutrient-Neutrality-a-summary-guide-March-2022.pdf |
| Air Quality No credit system as yet | Currently no air quality offsetting market in the UK. The pollution must occur in close proximity to a protected site. | N/A | N/A | Liverpool City Region Combined Authority Air Quality Action Plan |
| Green Social Prescribing No credit system as yet | Markets currently in development- watch this space. | Could be incorporated within the design of many environmental projects Could combine a wide range of ES benefits and meet the multiple needs and wants of nature, the environment and people. Attractive to local authorities | No mandatory requirement as yet. | Health and well-being | The Mersey Forest |