A set of government-backed green finance standards has been introduced in the UK to support nature restoration, enhance investor confidence, and combat greenwashing. Developed by the British Standards Institution (BSI), the new framework aims to drive private investment into projects that deliver measurable environmental benefits, such as wetland restoration, water quality improvement, flood resilience, and habitat creation.
The Overarching Principles Standard (BSI Flex 701), unveiled today, represents the UK’s first standard for collective nature markets and is among the first of its kind globally. It is immediately available for use by businesses and land managers, forming part of a broader effort to establish the UK as a global leader in high-integrity nature investment and green finance.
Environment Secretary Steve Reed stated: “We need urgent, collective action to address the nature crisis, and businesses have a vital role to play. These new standards strike a blow against greenwashing and give businesses clarity and confidence that their investments are genuinely benefiting the natural world.”
The standard forms part of the Government’s Plan for Change, aimed at delivering economic growth while aligning environmental goals with market activity. The Green Finance Institute has warned that nature-related risks—such as declining soil health and water scarcity—could reduce GDP by as much as 6%, underlining the economic imperative of restoring natural ecosystems.
The BSI-led standards were developed through wide consultation with businesses, farmers, land managers, and devolved governments. The goal is to ensure consistency and rigour in nature markets, enabling investment in projects with proven environmental value.
Scott Steedman, Director-General of Standards at BSI, said: “These principles lay the foundation for consistent, high-integrity nature markets in the UK, helping to create new revenue streams for farmers and land managers through nature-based solutions.”
Leaders from all four UK nations welcomed the announcement:
- Wales’ Deputy First Minister Huw Irranca-Davies said the standards would “ensure that investment in the natural environment happens responsibly, supporting a greener and fairer economy.”
- Scotland’s Cabinet Secretary Mairi Gougeon called the move “an important step” in developing responsible natural capital markets aligned with Scotland’s environmental goals.
- Northern Ireland’s Minister Andrew Muir praised the effort to streamline nature market standards, highlighting their role in achieving biodiversity targets.
BSI also launched a consultation on the Natural Carbon Standard, a complementary framework focused on high-integrity carbon credits derived from UK-based nature projects such as woodlands and peatlands. These credits are intended to support national net zero targets while delivering ecological benefits.
The UK Government views the establishment of these standards as a critical step in attracting sustainable investment and delivering large-scale nature restoration, in tandem with economic growth.
