L3: REGULATING SERVICES
Nature-Based Solutions
Human actions that protect, restore, or create ecosystems to address societal challenges.
The “doing” that generates ecosystem services – and increasingly, revenue.
In 30 Seconds
Nature-based solutions (NBS) use ecosystems to address societal challenges:
- Woodlandsabsorb carbon as they grow
- Wetlandsreduce flooding and filter water
- Restored habitatssupport biodiversity recovery
In the UK, government-backed standards like the Woodland Carbon Code turn this into verified carbon credits that companies can purchase (~£26/tCO2).
Key insight: NBS isn't a silver bullet – it can't replace emission reductions. But it's a growing part of corporate net-zero strategies, contributing ~2% of UK emissions reductions now, growing to 5%+ by 2050.
Key Distinction: NBS vs Ecosystem Services
Nature-Based Solutions (this page)
Deliberate human interventions – intentional actions to work with nature.
- • Creating new woodlands
- • Restoring degraded peatlands
- • Protecting threatened mangroves
- • Managing land for soil carbon
The intervention – what you choose to do.
Ecosystem Services
What nature provides – benefits from functioning ecosystems.
- • Carbon sequestration
- • Flood regulation
- • Water purification
- • Pollination
The output – what you get as a result.
Example: Is “preserving a mangrove forest” NBS? Yes – the protection action is the NBS. The benefits the mangroves provide (coastal protection, carbon storage, fish nurseries) are ecosystem services.
Where NBS Fits
Nature-based solutions touch every layer of the sustainability landscape:
Why this matters: NBS isn't just “planting trees” – it's connecting planetary science to corporate strategy through verified mechanisms. Most consultants see NBS as a single topic. We see how it flows through the entire system.
The 10 UK NBS Options
Official UK government-recognised nature-based solutions for climate mitigation
(Environment Agency & Eunomia, 2021)
| # | NBS Option | Carbon Mechanism | UK Standard |
|---|---|---|---|
| 1 | Woodland creation | Sequestration as trees grow | Woodland Carbon Code |
| 2 | Upland peat restoration | Avoided emissions + sequestration | Peatland Code |
| 3 | Lowland peat restoration | Avoided emissions + sequestration | Peatland Code |
| 4 | Biochar | Long-term carbon storage | PAS 1401:2025 |
| 5 | Soil management | Increased soil organic carbon | Emerging (Soil Carbon Code) |
| 6 | Enhanced weathering | Mineralisation of CO2 | Emerging |
| 7 | Floodplain restoration | Sequestration + avoided emissions | BNG + integrated schemes |
| 8 | Saltmarsh restoration | Blue carbon sequestration | Emerging |
| 9 | Grassland management | Soil carbon | Emerging |
| 10 | Seagrass restoration | Blue carbon sequestration | Emerging |
Mature Standards
Woodland Carbon Code (2011+) and Peatland Code are government-backed with independent verification. These are the gold standard for UK terrestrial NBS.
Emerging Standards
Biochar (PAS 1401:2025), soil carbon, and blue carbon methodologies are developing. Watch this space – but due diligence required.
UK Standards & Credibility
Not all nature-based carbon is equal. Here's what credible looks like.
Woodland Carbon Code
The gold standard for UK terrestrial NBS
- StatusGovernment-backed
- Launched2011
- Price~£26/tCO2
- Projects845+ validated
- Area42,000+ hectares
Why credible: Sound science, permanence, additionality, independent verification, transparent registry.
Peatland Code
UK peatlands store ~3 billion tonnes of carbon
- FocusPeatland restoration
- MechanismAvoided + sequestration
- RegistryUK Land Carbon Registry
- Administered byIUCN UK Peatland Programme
Why it matters: Degraded peatlands emit. Restoration stops emissions and begins slow sequestration.
Biodiversity Net Gain (BNG)
Mandatory for UK planning since November 2023
- Requirement10% net gain
- UnitsBiodiversity units (not carbon)
- Pricing£25-50K per unit
Note: Creates a market for habitat creation, separate from carbon but often on the same land.
Emerging Standards
Watch this space – due diligence required
- BiocharPAS 1401:2025 just published
- Soil Carbon CodeIn development
- Blue CarbonSaltmarsh, seagrass – methodologies maturing
How NBS Credits Work
The journey from planting to credit (Woodland Carbon Code example)
Register
Landowner registers project with WCC, submits project design
Validate
Independent verifier checks requirements. Project receives Pending Issuance Units (PIUs)
Grow
Trees grow. Carbon is sequestered. This takes years.
Verify
At intervals (typically every 5 years), verifiers check actual growth against projections
Convert
PIUs convert to Woodland Carbon Units (WCUs) – verified, tradeable credits
Yield: Up to 500 credits per hectare over 50+ years
NBS & Corporate Net-Zero
How nature-based solutions fit corporate climate strategies
The Mitigation Hierarchy
The fundamental rule: reduce first, then offset residual.
NBS credits sit at step 4 – important but not a substitute for steps 1-3.
SBTi Position
- Near-term targets: Must be achieved through emission reductions. No credit substitution.
- Beyond Value Chain Mitigation (BVCM): Companies encouraged to invest in NBS outside their value chain, but it doesn't count toward targets.
- Long-term net-zero: High-quality removals (including NBS) can neutralise residual emissions.
Key insight: SBTi separates “reducing your emissions” from “supporting climate action elsewhere.” Both matter, but they're accounted for differently.
What Credible Looks Like
Do
- • Prioritise emission reductions first
- • Choose high-integrity standards (WCC, ICVCM)
- • Disclose clearly what credits are for
- • Support UK/verified projects where possible
Don't
- • Buy cheap credits to avoid hard decarbonisation
- • Assume all credits are equal
- • Claim “carbon neutral” without context
- • Buy purely on price
Who Operates Here
Landowners & Farmers
Generate revenue from ecosystem services your land provides.
Key questions:
- • Which NBS options suit my land?
- • What standards should I use?
- • Can I stack carbon + biodiversity?
Watch out for: Lock-in periods, verification costs, additionality requirements.
Corporate Buyers
Procure credible credits for BVCM, net-zero, and sustainability commitments.
Key questions:
- • How do I assess credit quality?
- • What fits my SBTi targets?
- • How do I avoid greenwashing risk?
Watch out for: Quality variance, reputational risk, evolving standards.
Project Developers
Connect landowners with standards, verification, and buyers.
Key questions:
- • How do I aggregate small landholdings?
- • What due diligence do buyers need?
- • Can I structure blended products?
Watch out for: Verification costs, landowner retention, market timing.
SMEs & Mid-Market
Build credible sustainability credentials without Big 4 budgets.
Key questions:
- • Which credits are trustworthy?
- • How much should I spend?
- • Will this withstand scrutiny?
Watch out for: Greenwashing accusations, wasted spend on low-quality credits.
Quick Reference
Key Acronyms
| Acronym | Full Name | What It Is |
|---|---|---|
| NBS | Nature-Based Solutions | Nature-derived approaches to societal challenges |
| WCC | Woodland Carbon Code | UK woodland carbon standard |
| PIU | Pending Issuance Unit | WCC claim on future carbon |
| WCU | Woodland Carbon Unit | Verified WCC credit |
| BNG | Biodiversity Net Gain | UK mandatory biodiversity requirement |
| PES | Payment for Ecosystem Services | Paying landowners for nature benefits |
| BVCM | Beyond Value Chain Mitigation | SBTi term for climate action outside scope |
| ICVCM | Integrity Council for VCM | Carbon credit quality standards |
The Financial Connection
NBS creates the physical services. Finance flows are how those services become revenue.
The Connection
NBS (What you DO)
- • Plant woodlands
- • Restore peatlands
- • Create wetlands
- • Manage soil carbon
Capital Flows (How you get PAID)
- • Carbon credits (WCC, Peatland Code)
- • Biodiversity credits (BNG)
- • PES payments
- • Stacked/bundled revenue
How do these translate to revenue?
Carbon credits, biodiversity credits, and PES payments are the revenue mechanisms that turn nature-based interventions into income streams for landowners and project developers.