Director Jon Davies shares an insightful thought piece following conversations with David Hill (founder of Environment Bank) on his new venture: Foundation for Nature
One of the greatest risks to the successful implementation of nature recovery across the globe, especially in the voluntary biodiversity markets, is the corrosive effect of green-washing. If you are a corporation contributing to biodiversity projects, or even a philanthropist keen to do the right thing for the planet, how can you be sure that your money is delivering the real world benefits you want to see?
The voluntary biodiversity and ESG markets, wary of some of the more adverse publicity coming out of carbon offsetting over the last few years, essentially has billions of dollars tentatively waiting to be spent on nature restoration, unsure whether promises of biodiversity restoration can and will be met. Like swimmers lined up alongside an ice-cold pool, it seems that no-one wants to dive in. But something, or someone, needs to give them a gentle prod; or better still to shout out ‘come in, the water is lovely!’
In the UK, the problem has been resolved to a significant degree by the Environment Act, and the legal mandating of Biodiversity Net Gain (BNG). Developers are required by law to achieve a minimum 10% net gain for their developments, meaning that the flows of money into habitat creation and enhancement have to happen. That certainty is key, but so is the assurance of effective implementation. To that end, the BNG process is regulated and monitored to ensure successful delivery of the promised biodiversity uplift. And as a Responsible Body under the Act, it is RSK Wilding’s role to ensure compliance (at least for offsite BNG, as delivered through habitat banks). We prepare the legal contractual agreements (‘conservation covenants’) that secure the land and its restoration commitments, register the site on the national Gain Site Register, and monitor performance over a minimum of 30 years. We took on the role specifically because we want to see BNG made a success.
Last week, RSK Wilding’s Legal Counsel, Alexa Culver, presented to the European Commission about lessons learnt around BNG, as part of a meeting to discuss how an EU-wide biodiversity market might work. As noted in the Nature Conservancy report underpinning the meeting, this will not be straightforward given the complexity around the numerous jurisdictions involved, but the recommendation is for there to be an overarching framework of rules similar to BNG (with each country delivering slightly differently in accordance with their local laws and policies). So we know that BNG is catching the attention of the world, and that many countries are keen to develop their own effective biodiversity restoration processes. And for them, as for us, it is essential that it works.
As far as we know, there is no comparable compliance system to BNG anywhere else in the world, and there is also currently no similarly robust process for validating projects being delivered as part of the voluntary biodiversity market. Yes there are biodiversity credits becoming available, and some of these will have thorough checks and balances in place (such as CreditNature’s Accounting for Nature-approved Ecosystem Integrity Index), but there is no overarching quality-control system in place, meaning that the potential for biodiversity to go the way of carbon is high.
RSK Wilding, along with our colleagues in RSK Nature Repair, have been talking with David Hill, the brains behind BNG and Environment Bank, and now the founder of the new not-for-profit Foundation for Nature. His aim is to establish a globally recognised Ratings Agency for the emerging nature restoration and natural capital sector to drive high-integrity biodiversity projects. Significantly, it is intended that this should provide ‘confidence to investors, buyers, and sellers that they are making choices that are positive for nature, ethical and equitable’.
Whilst many businesses do now recognise their impacts and dependencies on nature (see the work of our sister company Nature Positive for details), and are looking to invest in nature restoration projects, there is a massive nature restoration funding gap; it is clear that corporations need firm incentives and assurances if they are to help bridge that gap as part of their ESG or TNFD commitments. However, the risk of overstated positive impacts, negative effects on local communities, and other greenwashing issues can be very off-putting to companies all too aware of the reputational minefield. David’s ambition is that the Foundation For Nature’s Ratings Framework – whereby projects are essentially scored for their ecological integrity, financial probity, good governance and community benefits – will become an internationally recognised standard for assessing the suitability of nature restoration projects.
An example project that could be a perfect fit for this system is a venture that we in RSK Wilding are working closely on. Wildebeef, the brainchild of a South African vet and a Ugandan landowner, aims to restore millions of hectares of heavily-degraded pastureland across Uganda into a thriving savannah ecosystem, complete with native herbivores such as zebra, buffalo and eland. By simply pivoting from unsustainable cattle grazing practices into regenerative ‘intensive rotational grazing’ techniques, alongside the conversion of non-native invasive scrub into biochar, the project aims to massively increase grassland biomass and biodiversity, sequester and lock significant amounts of carbon into the soil, enhance water retention, and improve the livelihoods of millions of people in impoverished communities. The ultimate aim is roll this out over the entirety of Uganda’s cattle corridor (43% of the country) and indeed more widely across Africa.
Wilding’s role in the Wildebeef project will be to provide the third party assurance, not only with regard to the biodiversity benefits of the venture but also the positive climate impacts associated with huge increases in carbon sequestration over such enormous areas. This will involve developing robust but light-touch monitoring methodologies (we want as much of the funding as possible to go to the landowners), and carrying out detailed research to underpin any claims around overall carbon flows (understanding that cows produce methane) and ongoing biodiversity benefits. We want those investing in the project to be confident that the project is delivering on its promise to save the planet! We therefore very much look forward to discussing potential synergies with the Ratings Framework with David in the near future.
As a Responsible Body working with some of the highest profile and highest integrity habitat banks in the UK (see our first Annual Report here), and also as authors of CIEEM’s upcoming best practice guidance for BNG, RSK Wilding understand the importance of high quality delivery and robust oversight if biodiversity loss is to be successfully reversed. We therefore very much welcome David’s new venture, and hope that his new organisation can help remove the blockage that is currently holding back the flow of corporate money into nature positive projects. ‘Foundation for Nature: the Dyno-rod of the voluntary biodiversity sector’… marketing sorted (other drain-unblocking companies are available).
Jon Davies – RSK Wilding Director