[{"data":1,"prerenderedAt":91},["ShallowReactive",2],{"pages-686bc13a32fbf8bc6c137278":3},{"_id":4,"state":5,"name":6,"category":7,"theme":8,"components":9,"keywords":84},"686bc13a32fbf8bc6c137278","active","Market-based biodiversity regulation for the agri-food sector (ETS-style)","discover","european_food_system_dashboard",[10,22,31,38,45,52,59,66],{"type":11,"index":12,"variation":13,"imageURL":14,"title":15,"description":17,"button":19},"header",0,"image_left","https://planeateu.retool.com/api/file/8acbb2a1-7483-43c5-a3c4-5f587e5f3010",{"en_GB":16},"Expand Emissions Trading System to biodiversity in the agri-food sector",{"en_GB":18},"- Food system activity: Overarching\n- Governance level: European\n- Cluster: Stay within planetary boundaries\n- Origin: EU/Spain\n- Type of policy intervention: Regulatory",{"label":20,"URL":21},{"en_GB":21},"",{"type":23,"index":24,"variation":25,"imageURL":26,"title":27,"description":29},"image_and_text",1,"image_right","https://planeateu.retool.com/api/file/1c0aace6-2325-4a53-96d6-5d50235b85c7",{"en_GB":28},"Intervention Details",{"en_GB":30},"This policy intervention builds on the existing EU Emissions Trading Systems (ETS) framework, extending it beyond CO₂ to include metrics for biodiversity-related externalities such as deforestation, wetland drainage, agrochemical overuse, and soil degradation. The EU ETS operates on a \"cap-and-trade\" principle: it sets a limit on total greenhouse gas emissions from high-emitting sectors (e.g. energy, industry, aviation) and allows companies to buy and sell emission allowances within that cap. By putting a price on carbon, the EU ETS provides a financial incentive for companies to reduce their emissions cost-effectively and invest in cleaner technologies. The current policy intervention proposes that actors in the agri-food sector would be required to hold biodiversity credits proportional to their ecological footprint. Those who implement biodiversity-enhancing practices (e.g., agroforestry, reduced tillage, buffer zones) could generate tradable credits. This market-based approach aims to internalize biodiversity costs and incentivize systemic transitions toward a sustainable European food system.",{"type":23,"index":32,"variation":13,"imageURL":33,"title":34,"description":36},2,"https://planeateu.retool.com/api/file/c32b40e5-d2c2-44bb-a1ed-0e0d2ba39795",{"en_GB":35},"Examples of implementation",{"en_GB":37},"While no full biodiversity-focused ETS has been implemented in the EU, there are some pilot biodiversity offsetting schemes at the national level aiming to achieve at minimum ‘no net loss’ or even a ‘net gain’ for biodiversity (ten Kate & Crowe, 2014). For example, Spain – one of the two policy summits where this intervention was actually raised – was one of the first EU member states to develop any kind of biodiversity credit and conservation banking, albeit only on paper as no actual conservation banks have been established (Wende et al., 2018). Germany has the *Eingriffsregelung* (Impact mitigation regulation) in place which among others holds the obligation to provide physical compensation for any environmental impact, also in the form of biodiversity offsets (Wende et al., 2018). Although there are no specific policy instruments in place at the EU level, there are some biodiversity-related policy goals. For instance, the EU Biodiversity Strategy for 2030 calls for economic instruments to align private finance with restoration targets, and the Nature Restoration Law proposes binding targets for degraded ecosystems. ",{"type":23,"index":39,"variation":25,"imageURL":40,"title":41,"description":43},3,"https://planeateu.retool.com/api/file/afec88ea-040b-4549-a51c-f75cc9a63be5",{"en_GB":42},"Key implementation challenges",{"en_GB":44},"There are several implementation challenges associated with a biodiversity-ETS system for the agri-food system. The EU-level food policy summit where this intervention was proposed itself raised the potential issue of food costs for households being elevated due to this intervention. However, participants suggested that to counter this issue, this intervention would also actually unleash demand for low emission products by cost-conscious consumers. Moreover, in terms of governance, it is essential to facilitate good coordination between different governmental departments and ministries (ten Kate et al., 2014). ",{"type":46,"index":47,"variation":48,"imageURL":21,"title":49,"description":50},"title_and_text",4,"title_description",{"en_GB":21},{"en_GB":51},"Integrating biodiversity into an existing ETS framework would require cross-sectoral coordination and likely new EU-level legislation or amendments to the current ETS Directive. Monitoring the performance of mitigation measures such as biodiversity offsets is another key issue. Designing credible biodiversity units (credits) that reflect ecological function and not just land cover is also complex, requiring a solid system for valuating ecosystem services. Another potential barrier could be the development of a market for conservation or biodiversity credits across the EU. Moreover, biodiversity offsetting mechanisms currently often fall short of their stated goals of at least achieving no net loss of biodiversity and therefore their performance needs to be improved (Maron, von Hase, Quétier et al., 2025). Finally, the monetization of ecosystem services, which is part of the current policy intervention, is not necessarily effective in achieving biodiversity conservation by itself but requires additional policy measures to protect ecosystems (Temel et al., 2017).",{"type":23,"index":53,"variation":13,"imageURL":54,"title":55,"description":57},5,"https://planeateu.retool.com/api/file/b466ae36-722e-4837-9540-cd11b3d71ab9",{"en_GB":56},"Expert Evaluation",{"en_GB":58},"Experts rated the effectiveness of this policy intervention at an average of 3.22/5.00 (SD = 1.23), indicating a moderately positive assessment and ranking 17th out of 20 interventions. Expert responses were generally skeptical regarding the effectiveness of this intervention, although views varied. Survey respondents argued that companies may use such mechanisms for greenwashing or circumvent regulatory requirements. They also expressed concerns that ETS-style credit systems could disproportionately benefit a few actors and not lead to change in practices. The average feasibility score was 2.81/5.00 (SD = 1.04), reflecting a moderate assessment and ranking in the bottom three (18th out of 20). Survey respondents identified several barriers to implementation, including limited political momentum, resistance from industry stakeholders, high administrative costs, and the need for major investments in data systems and financial infrastructure. Experts further emphasized that, beyond measurement challenges, the selection of appropriate indicators would be highly contentious, and ethical concerns regarding the assumption that biodiversity loss in one location can be offset elsewhere. ",{"type":46,"index":60,"variation":61,"imageURL":21,"title":62,"description":64},6,"title_image_description",{"en_GB":63},"List of References",{"en_GB":65},"•\tEuropean Commission. (2020). EU Biodiversity Strategy for 2030. [https://ec.europa.eu/environment/strategy/biodiversity-strategy-2030_en](https://ec.europa.eu/environment/strategy/biodiversity-strategy-2030_en)\n\n•\tMaron, M., von Hase, A., Quétier, F. et al. Biodiversity offsets, their effectiveness and their role in a nature positive future. Nat. Rev. Biodivers. 1, 183–196 (2025). [https://doi.org/10.1038/s44358-025-00023-2](https://doi.org/10.1038/s44358-025-00023-2)\n\n•\tten Kate, K. and Crowe, M.L.A. (2014). Biodiversity Offsets: Policy options for governments. An input paper for the IUCN Technical Study Group on Biodiversity Offsets. Gland, Switzerland: IUCN.\n\n•\tWende, W., Graham, M.T., Quétier, F., Rayment, M. & Darbi, M. (eds.) (2018). Biodiversity offsets: European perspectives on no net loss of biodiversity and ecosystem services. New York City: Springer. ",{"type":67,"index":68,"variation":69,"title":70,"contact1":72,"contact2":78,"contact3":81},"contacts",7,"title_top",{"en_GB":71},"CONTACT",{"imageURL":73,"name":74,"description":76},"https://planeateu.retool.com/api/file/771281e8-fca5-4ec7-a45c-0addca312f67",{"en_GB":75},"Jeroen Candel",{"en_GB":77},"Associate professor of food and agricultural policy​",{"imageURL":21,"name":79,"description":80},{"en_GB":21},{"en_GB":21},{"imageURL":21,"name":82,"description":83},{"en_GB":21},{"en_GB":21},[85,86,87,88,89,90],"ETS","overarching","stay within planetary boundaries","Spain","Financial","policy intervention",1776157871919]