We discuss this with experts. The results are compiled semi-annually in an overview of Early Warnings. In this newsletter, we explore opportunities to profit from nature restoration.

Economic interests and nature often seem to be at odds. Emissions from agriculture, industry, and traffic threaten biodiversity while nature restoration costs billions annually. 

But is it really that black and white? Can nature restoration and profit-making not be combined? Increasing examples show that improving biodiversity and financial gain can go hand in hand.

Monetary Moss and Lucrative Cattail

There are already several ways to profit from nature restoration. Consider cultivating ecologically valuable plants that also have economically useful properties.

Sphagnum moss is a good example. This plant stores a lot of CO₂ and retains up to 20 times its weight in water during dry periods. The absorption capacity of sphagnum moss makes it an ideal material for making compostable diapers, for example.

This not only reduces waste but also provides a financial incentive to cultivate sphagnum moss. Another example is cattail. This aquatic plant grows at the edges of lakes and rivers and absorbs excess phosphates and other nutrients from the soil and water.

Due to this property, cattail is a valuable ally in combating pollution from livestock farming. The hollow stems also make the plant suitable as a sustainable insulation material in construction.

Trading Emissions

Another way to provide financial incentives for nature restoration is through so-called carbon credits. These are tradable certificates that compensate for CO₂ emissions. Companies or organizations can buy these credits to offset their own CO₂ emissions and thus contribute to achieving climate goals. In this way, a company or organization can profit from planting trees and other vegetation that sequester CO₂.

Although carbon credits are not new, the CO₂ market is still developing. A recent trend is the trading of CO₂ storage in bio-based construction. By using materials such as wood, hemp, and straw, CO₂ is stored in buildings for the long term.

The Climate Cleanup Foundation certifies such construction projects with a positive contribution to biodiversity. These certificates can then be traded on the CO₂ market.

Financing Biodiversity

Carbon credits are mainly aimed at reducing CO₂ emissions. But there is another financial instrument with a more direct impact on nature restoration: biodiversity credits.

This is a market that is still in its infancy. When a project demonstrably increases biodiversity, it receives credits awarded by the National Biodiversity Bank in the Netherlands. These credits can, like carbon credits, be sold to companies.

The proceeds from the sale of certificates are used to finance nature restoration projects. The initiatives mentioned above show a development where nature restoration is not only seen as a cost but also as a way to make money. They prove that nature and economy do not have to be competitors, but can also strengthen each other.