Von der Leyen proposes a market of "natural credits" to prevent the collapse of ecosystems

The EU must create New financial tools to reward farmers that contribute to reversing the loss of biodiversity and the deterioration of the climate, declared the President of the European Commission, Ursula von der Leyen.

“We need new financial tools to compensate farmers for the additional costs of sustainability and compensate them for caring for the soil, land, water and air,” said von der Leyen.

“It’s time to reward those who serve our planet“he said at a conference in Munich, which took place just a week after the conclusion of a “strategic dialogue” on the future of agriculture in Europelaunched amid growing unrest over EU environmental policy.

Farmers are victims on the front line of the climate change and the loss of biodiversity, while “agricultural structures and practices can fuel these crises,” said the re-elected President of the European Executive.

“We need new financial tools, to compensate farmers for the additional costs of sustainabilityand compensate them for taking care of the land, water and air,” he said.

Von der Leyen, who sparked controversy in recent months by rescinding Key environmental policy proposals Amidst noisy street protests by farmers in Brussels and across the EU, he has pledged to present a roadmap for the future of farming in Europe. in the first 100 days of his second termwhich will begin in November.

His comments today are based on the report on the strategic dialogue released on September 4, which received the unanimous support from environmental groupsfarmers’ unions and lobby groups and other stakeholders, and calling for a “substantial annual increase” in the share of direct payments to farmers under the Common Agricultural Policy that are linked to environmental action.

Von der Leyen hinted a system of “nature credits” market-based approach that could also be applied beyond the agricultural sector.

“For example, a water company for which the health of a spring is a vital asset. Or take a fruit company that relies on the essential work of pollinators. They could use the natural credits to rewarding local communities and farmers who provide ecosystem services“so that we can create a market to restore our planet,” he said.

“I know it sounds almost too good to be true, but we know that with the right rules, it can be done,” he said, pointing to the EU Emissions Trading Systemwhere power plant and factory operators have to buy tradable rights to cover every tonne of carbon dioxide they emita system in force for two decades.

“Work is already underway at the United Nations and the European Commission to Defining a global standard for nature creditsbecause they have to be true nature credits and not greenwashing,” said Von der Leyen, before concluding on a personal note: “Since I was little, 70% of all wildlife has disappeared“.

A European Commission spokesperson later declined to go into detail about the “ongoing work”, noting only that von der Leyen had briefly touched on the same topic at the COP28 climate summit held in Dubai last year, where suggested that ‘Nature credits’ could be used to reward African countries for preserving their rainforests.

In case the Munich audience had any doubts about the magnitude of the crisis facing Europe and the planet, Johan Rockström, Potsdam Institute for Climate Impact Researchfollowed the Commission President with a stark warning: climate breakdown is not only due to greenhouse gas emissions.

“I can tell you that science is clear today that the ultimate determinant, what regulates the stability of the planet, its ability to maintain itself in a desired state of equilibrium, is nature,” Rockström said, suggesting that biodiversity and climate action made sense even if it was purely pragmatic.

“This is a point where we have to wake up and fundamentally deviate from this path of disaster, even if it only focuses on employment, the economy and security, because It’s about jobs, economy and security“.