Opinion: Nature values market – risk or opportunity for forest sector in Finland and the EU?

Nature credits and the market for nature values are emerging among the most heated discussion topics in Brussels right now. The Finnish Central Union of Agricultural Producers and Forest Owners (MTK) participates actively in discussions and meetings – we see great potential here for forest owners and nature.

In both Finland and the EU, we need to find innovative solutions to enhance biodiversity protection. A nature values market or nature credits are a central part of reaching this goal. Landowners have multiple objectives, and via a market mechanism, the provision of nature values could become a financially viable option, alongside other income opportunities.

Message to political decision makers – do not spoil opportunities

The efforts to develop a market for nature values should consider all aspects related to forests, including their daily use. Forest owners should be involved at the different stages of the process.

Public actors can create enabling conditions, but they should not act as market operators. Excessive regulation could hinder the functioning of the market and wipe out the potential.

A nature values market is a complementary tool. If a government or other public entity imposes restrictions on forest use, this should be compensated for from public funds.

Actors in Brussels seem to be in a hurry, but one should exercise caution regarding, for example, the ideas concerning the combining of the carbon market and the nature values market. To avoid hampering the development of the market with complexity, MTK is in favour of preparing the nature values market and nature credit criteria as an entity separate from the carbon market. Since the carbon accumulation is global, but nature credits are mainly local, the objectives of the carbon market and the nature values market should remain distinct.

EU policy preparation must consider the unique characteristics of each member state and include all aspects related to the multiple uses of forests. Also, national work to develop the nature market should be respected. The possible models for a nature values market should be applicable across Europe, take account of national differences and encourage the wide participation of forest owners.

According to rumours circulating in Brussels, only some activities, such as protection, restoration and improved management, would be considered eligible for biodiversity credits. If the market does not recognize a wide range of different practices and measures, a considerable number of forest owners might not be able to participate. This would conflict with the fact that sustainable forest management entails a wide variety of measures that greatly enhance biodiversity, and would overlook the practices pursued by forest owners daily.

MTK pioneers development of nature values market

Building a market through restrictive regulation could jeopardize the development of the nature values market and should thus be avoided. Thus, nature credits and the nature values market should be simple and solely market-based. MTK strongly recommends that forest owners should be included in the piloting and testing of the nature values market before launching marketplaces or methods. Ideally, the marketplaces should be accessible to a wider use.

MTK is a pioneer in developing nature credits and the nature values market, and is prepared to share its experiences and best practices. During 2025, the next version of MTK’s nature values marketplace (luontoarvot.fi) will be completed. and MTK is prepared to offer this marketplace for use by other countries as well.

The nature values market must provide space for a range of products. A good example is the ecological compensation model in Finland, which is useful for credits based on certificates from authorities. Since there is also an increasing demand for smaller models not involving authorities, these should be developed simultaneously.

It seems to me that next year will determine whether the EU Commission has the wisdom to trust the markets and let the nature values market evolve. If the Commission thinks that markets can be created by legislation, it is seriously mistaken.