Marybeth Collins
Finland is setting a new precedent in financing biodiversity conservation through voluntary biodiversity markets. The aim is to preserve natural ecosystems while opening investment opportunities for private entities. As global efforts, such as the Kunming-Montreal Global Biodiversity Framework, underscore the need for greater biodiversity protections, the Finnish government is advancing frameworks to facilitate private-sector investments in biodiversity preservation alongside public efforts.
Biodiversity Financing: A National Priority in Finland
In alignment with the EU Biodiversity Strategy and the Nature Restoration Regulation, Finland is developing new financial instruments to support biodiversity efforts nationally. Finland’s Ministry of Environment is spearheading this initiative, underlining that current public resources alone are insufficient for the scope of biodiversity preservation needed today. Prime Minister Petteri Orpo’s government has thus prioritized the creation of “multi-channel” financing instruments—tools that engage both public and private sector stakeholders to maintain and restore biodiversity across Finland’s diverse landscapes.
The initiative introduces voluntary biodiversity markets that allow companies to invest in nature-positive actions. These market-based solutions are modeled after the carbon credit market, where companies can purchase “nature credits” or units representing ecological restoration efforts, such as reforestation or habitat conservation. This allows businesses to claim contributions toward biodiversity preservation, reflecting these efforts in environmental impact reports and marketing initiatives.
Structured Market Framework to Encourage Private Investments
To ensure the success and integrity of this market, Finland’s Ministry of Environment has set clear guidelines to oversee the nature credits program. This includes establishing a verification system, detailed registration processes, and criteria for credits that promote ecosystem longevity and genuine biodiversity benefits. Chief Specialist Emma Terämä highlighted that Finland’s Nature Conservation Act already permits environmental offsets, a foundational step for biodiversity trading frameworks. This framework now expands to include voluntary nature claims, allowing companies to offset harm and proactively support ecological projects.
Finland’s approach minimizes risks of greenwashing through transparent regulations and an accessible public registry of biodiversity credits. By providing resources to guide businesses in making nature-related claims, Finland emphasizes an “open data” environment, helping ensure corporate contributions to biodiversity are genuine and impactful. For example, a company might claim they’ve helped restore an expanse of Finland’s distinctive aapa mires, a unique peatland ecosystem crucial for carbon storage and water regulation, alongside native biodiversity.
Collaborative Efforts and Global Commitment
At the EU level, Finland collaborates with the International Union for Conservation of Nature (IUCN) and the OECD to analyze financing options to help EU member states increase biodiversity funding through the Technical Support Instrument (TSI). This EU-supported project aims to enhance awareness, administrative efficiency, and financing solutions, particularly from private sector sources. Data and findings from this project will also contribute to international frameworks such as the Kunming-Montreal Biodiversity Framework.
