New IEMA Paper on Stacking and Bundling in Nature - October 2023

Nature markets are a relatively new concept and are seen as a way to deliver environmental policy on reducing greenhouse gas emissions and improving nature, and pulling private finance into the biodiversity sector. The Government published ‘Nature Markets: A Framework for Scaling Up Private Investment’ in March this year that suggests markets as diverse as carbon credits from peat and seagrass, could be leveraged.

Stacking and bundling of nature, where nature can provide multiple benefits simultaneously over time, is seen as an essential part of nature markets. Stacking refers to when different ecosystem services on a piece of land are sold as separate units of trade or credits. Bundling refers to when more than one ecosystem service produced on a piece of land is sold as a single trade or credit to a single buyer.

Because nature markets are new, complex, and little understood, IEMA has this week published a new paper: Stacking and Bundling in the Finance of Nature Markets to help professionals, including land managers and project developers, better understand the opportunities, the methodology, and the thinking behind stacking and bundling.

The paper aims to explain what nature markets are and why they are important, what stacking and bundling means, the role of additionality in the process, and the pros and cons of stacking and bundling. It finishes off with a list of recommendations to ensure that nature markets are set up in a way that can be most effective and transparent.

The paper also includes a useful glossary of terms, a list of examples where different revenues can be stacked, referring to legislation where relevant, and includes two case study examples.

As the rules and conventions in nature markets develop, this paper provides a great outline of ‘what good looks like’ to allow professionals to understand the offerings and act in a proper way that provides real improvements for nature.

IEMA members can download the guide here.

Not an IEMA member? You can purchase this paper from our online shop, listed under 'Biodiversity Net Gain.'

Other useful papers include:

Biodiversity Net Gain: Good Practice Insights

IEMA’s Biodiversity and Natural Capital Buzzword Guide