Biodiversity and Natural Capital Credit Market Size, Share, Forecast, & Trends Analysis by Type (Biodiversity {Habitat Conservation, Restoration}, Natural Capital {Carbon Sequestration}, Hybrid/Bundled Credits {Ecosystem Service Packages}), and Geography - Global Forecast to 2032

The Biodiversity and Natural Capital Credit Market was valued at $6.0 billion in 2024. This market is expected to reach $37.55 billion by 2032 from an estimated $7.42 billion in 2025, at a CAGR of 26.1% during the forecast period of 2025–2032.

Biodiversity and Natural Capital Credit Market Size & Forecast

The growth of this market is attributed to increasing corporate ESG commitments and net-positive biodiversity goals, government policies and regulations promoting biodiversity protection, growing investor interest in natural capital as an asset class, consumer demand for environmentally responsible products, and international frameworks such as the Kunming-Montreal Global Biodiversity Framework.

Moreover, integration with carbon markets for bundled credits, technological advancements in biodiversity monitoring and verification, expansion into marine and freshwater ecosystems, development of biodiversity credit registries and exchanges, and growth of biodiversity-linked financial instruments are expected to offer growth opportunities for the players operating in this market.

Furthermore, increasing use of technology (remote sensing, eDNA, AI) for verification, growth of blockchain-based solutions for transparency, rise of jurisdictional and landscape approaches, development of biodiversity credit ratings systems, and integration with climate finance and natural climate solutions are major trends in the global biodiversity and natural capital credit market.

However, Lack of standardized metrics and methodologies for measurement, Limited regulatory frameworks in many regions, High transaction costs and market fragmentation, Challenges in ensuring long-term conservation outcomes, and Verification and additionality concerns are expected to hinder the growth of this market.

Key Findings

• By Credit Type: In 2025, the Biodiversity Credits Segment to Dominate the Biodiversity and Natural Capital Credit Market
• By Geography: Europe to Dominate the Biodiversity and Natural Capital Credit Market in 2025

Biodiversity and Natural Capital Credit Market Growth Drivers

Increasing Corporate ESG Commitments and Net-Positive Biodiversity Goals Driving the Biodiversity and Natural Capital Credit Market

As businesses face mounting pressure from stakeholders—investors, regulators, and consumers—to address climate change and environmental degradation, many companies are making more ambitious ESG commitments. These commitments often involve not just reducing carbon emissions but also enhancing biodiversity and protecting natural ecosystems.

One of the ways companies are working to achieve these goals is by investing in biodiversity and natural capital projects. These projects include initiatives focused on restoring ecosystems, protecting endangered species, and maintaining ecosystem services, such as water purification, pollination, and soil fertility. The biodiversity and natural capital credit market provides a platform for companies to purchase credits that represent measurable environmental benefits generated by these types of projects. This market, which is still evolving, is increasingly seen as a valuable tool for companies to offset their environmental impact and contribute positively to global biodiversity.

As the demand for biodiversity and natural capital credits grows, companies are increasingly integrating these assets into their corporate sustainability strategies. The credits allow businesses to demonstrate their environmental stewardship, meet regulatory requirements, and communicate progress on their ESG commitments. Additionally, with an increasing recognition of the economic value of biodiversity and natural capital, more organizations are adopting net-positive biodiversity goals—aiming not just to minimize their harm to the environment but to actively contribute to its restoration and enhancement.

Finally, the growing integration of biodiversity into corporate strategies and the development of the biodiversity and natural capital credit market signal a positive shift toward a more sustainable, nature-positive global economy. This trend is expected to accelerate as more businesses, investors, and governments align ambitious environmental goals that include the preservation and restoration of natural capital.

International Frameworks such as the Kunming-Montreal Global Biodiversity Framework

International frameworks like the Kunming-Montreal Global Biodiversity Framework play a pivotal role in boosting demand for biodiversity and natural capital credits. Adopted in 2022, this framework sets ambitious targets to halt biodiversity loss and restore ecosystems by 2030. It provides a unified approach for countries to address biodiversity challenges, emphasizing conservation, sustainable resource use, and financial support for nature-positive initiatives.

The framework serves as a catalyst for corporations and investors to accelerate their involvement in biodiversity conservation. It encourages nations and businesses to align their activities with global biodiversity goals, using market-based instruments such as biodiversity credits. These credits represent verified environmental actions like habitat restoration or species protection, which companies can purchase to offset negative impacts or support conservation directly.

As the Kunming-Montreal framework strengthens national and corporate commitments to biodiversity, the demand for biodiversity credits is expected to rise. Companies seeking to comply with international standards or enhance their ESG profiles are increasingly turning to these credits. This surge in demand reflects a broader global shift toward integrating biodiversity considerations into business models and investment strategies. Ultimately, frameworks like Kunming-Montreal drive financial flows into nature-based solutions, catalyzing a more sustainable, nature-positive economy.

While biodiversity credits are gaining traction, they differ from biodiversity offsets, which are compliance-driven and used to compensate for unavoidable environmental damage. Biodiversity credits, on the other hand, are voluntary investments in biodiversity conservation, offering indirect benefits such as supply chain protection and reputational gains. Despite their potential, challenges remain, including the need for standardized metrics and robust governance frameworks to ensure the integrity and effectiveness of biodiversity credits.

Biodiversity and Natural Capital Credit Market Opportunity

Integration with Carbon Markets for Bundled Credits Generating Growth Opportunities for Market Stakeholders

Carbon and biodiversity are closely linked in environmental management; combining these credits into a single bundle offers a streamlined approach for companies aiming to meet multiple environmental goals simultaneously. Bundled credits enable businesses to offset their carbon emissions and support biodiversity conservation or ecosystem restoration efforts in one transaction. This integration helps create more efficient and scalable solutions for companies striving to align with ambitious ESG (Environmental, Social, and Governance) commitments and global sustainability targets.

Moreover, the bundling of carbon and biodiversity credits offers a unique opportunity to attract a broader pool of investors and corporate buyers who are looking for comprehensive, nature-positive solutions. It allows companies to maximize their environmental impact, as carbon mitigation projects often involve habitat restoration or sustainable land management practices that directly benefit biodiversity. By linking these two markets, businesses can make a more significant contribution to tackling climate change and biodiversity loss simultaneously, amplifying their efforts and maximizing the value of their investments.

For the biodiversity and natural capital credit market, this integration presents an opportunity for growth and innovation. As interest in nature-based solutions continues to rise, bundling carbon and biodiversity credits can foster more collaboration across industries, driving investments in holistic environmental projects that address the interconnected challenges of climate change and biodiversity loss.

Biodiversity and Natural Capital Credit Market Trends

Growth of Blockchain-based Solutions for Transparency

Blockchain technology provides a secure, decentralized platform that enhances traceability, accountability, and efficiency in the management of biodiversity and environmental credits. By using blockchain, every transaction or action related to the creation, trading, and verification of natural capital credits can be securely recorded, ensuring that the data is tamper-proof and accessible to all stakeholders in real time. This increased transparency builds trust among buyers, sellers, regulators, and conservation organizations, making the market more reliable and credible.

Additionally, blockchain allows for the seamless tracking of ecosystem restoration and conservation projects, enabling stakeholders to verify that specific environmental goals are being met. As demand for biodiversity credits grows, the ability to track and verify these credits on a transparent, immutable ledger becomes crucial to prevent fraud and ensure that environmental impacts are accurately measured.

Furthermore, blockchain-based solutions can help facilitate the global exchange of natural capital credits by providing a standardized and universally accessible platform. As the market continues to expand, these technologies will play a pivotal role in fostering sustainable environmental practices, supporting biodiversity conservation, and driving investments in natural capital projects.

Biodiversity and Natural Capital Credit Market Analysis: Key Findings

By Credit Type: In 2025, the Biodiversity Credits Segment to Dominate the Biodiversity and Natural Capital Credit Market

Based on credit type, the biodiversity and natural capital credit market is segmented into biodiversity credits, natural capital credits, and hybrid/bundled credits. In 2025, the biodiversity credits segment is expected to account for the largest share of the biodiversity and natural capital credit market. The large market share of this segment is attributed to the increasing awareness and demand for ecosystem preservation to mitigate the impacts of climate change and human activities on biodiversity. Governments and private sector entities are investing heavily in protecting natural habitats, and regulatory frameworks across various regions are becoming more aligned with biodiversity conservation goals. Furthermore, these credits are increasingly being integrated into corporate sustainability strategies as businesses are called to balance economic growth with environmental responsibility. The rise of international initiatives like the Convention on Biological Diversity (CBD) has propelled habitat/ecosystem conservation as a critical pillar in the global conservation agenda.

However, the hybrid/bundled credits segment is projected to register the highest CAGR during the forecast period due to increasing recognition that ecosystem-based solutions can simultaneously address both climate change and biodiversity loss. The ability to purchase credits that cover multiple aspects of environmental conservation appeals to a wide range of stakeholders, from corporations seeking more comprehensive sustainability solutions to governmental bodies implementing integrated environmental policies. Furthermore, the rise of cross-sector collaboration among environmental organizations, companies, and governments is accelerating the adoption of hybrid credits, making them a key driver in the transition to a more integrated approach to ecosystem service management.

Geographical Analysis

In 2025, Europe to Dominate the Biodiversity and Natural Capital Credit Market

In 2025, Europe is expected to account for the largest share of the biodiversity and natural capital credit market. The market growth in Europe is primarily driven by the robust regulatory frameworks, established environmental policies, and substantial financial investments in sustainability and conservation efforts. The European Union's Green Deal, which includes ambitious goals to reduce carbon emissions and protect biodiversity, has stimulated market growth. Moreover, European countries have pioneered efforts to integrate natural capital into national accounting systems, leading to a high demand for biodiversity credits.

Countries like Germany, the Netherlands, and France are at the forefront of using biodiversity and natural capital credits for environmental protection and climate goals. This region also benefits from a growing pool of investors and industries eager to meet sustainability targets through credible environmental credit systems.

However, the Asia-Pacific region is poised to record the highest CAGR during the forecast period, owing to rapid economic development, urbanization, and the growing recognition of the region's environmental challenges. Countries in this region are facing severe biodiversity loss, deforestation, and degradation of natural resources, which has led to an increasing demand for ecosystem service solutions. Additionally, many governments in this region are actively promoting sustainability and carbon markets. Key factors include rising environmental awareness among consumers, a surge in corporate sustainability commitments, and growing support for green finance initiatives. Countries like China, India, and Australia are playing a crucial role in this growth, with China particularly focusing on scaling up its carbon and biodiversity credit systems to meet its climate and conservation targets.

Biodiversity and Natural Capital Credit Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the biodiversity and natural capital credit market are Terrasos SAS (Colombia), BioCarbon Partners LP. (Zambia), Ekos Kāmahi Ltd (New Zealand), Climate Asset Management Limited (U.K.), Biodiversity Solutions Ltd (Uganda), EcoEnterprises Fund (U.S.), Zero Imprint Ltd. (U.K.), New Forests Advisory Pty Limited (Australia), GreenVest (U.S.), Wildlife Works Services (U.S.), Nature Metrics Ltd (U.K.), GreenCollar Group (Australia), Earthbanc (Denmark), DGB GROUP N.V. (Netherlands), The Landbanking Group (Austria), ClimateTrade (Spain), CreditNature Ltd (U.K.), and South Pole (Australia).

Biodiversity and Natural Capital Credit Industry Overview: Latest Developments from Key Industry Players

• In September 2024, Climate Asset Management raised more than $1 billion to invest in natural capital projects such as regenerative agriculture.
• In January 2024, Terra Natural Capital was launched to invest in scaling carbon removal and natural asset projects. It focuses on delivering financing for high-integrity carbon credits, supporting global organizations’ net-zero goals, and fostering ecosystem restoration through nature-based solutions.
• In June 2022, Ekos Kāmahi Ltd (New Zealand) launched a new biodiversity market, enabling Sanctuary Mountain Maungatautari to fund conservation by selling biodiversity units to businesses. Profile Group was the first buyer, supporting 83 hectares of conservation. The Ekos program aims to unlock private sector investment for conservation.
• In May 2022, ClimateTrade (Spain) and Terrasos SAS (Colombia) collaborated to promote Voluntary Biodiversity Credits (VBCs) from the Bosque de Niebla-El Globo Habitat Bank in Colombia. These VBCs, priced at $30, represent 30 years of conservation or restoration of 10m² of forest, supporting threatened species and ecosystem services. ClimateTrade's blockchain ensures transparency and traceability in VBC transactions.

Biodiversity and Natural Capital Credit Market Research Summary

Key questions answered in the biodiversity and natural capital credit market report: