A New Taskforce on Nature Markets paper has detailed a taxonomy and economic sizing of nature markets, estimating that they produce and trade more than $7tr worth of goods and services annually, equivalent to the third largest economy after the US and China.

Nature markets are defined as those that explicitly value and trade nature including voluntary carbon credits, conservation, soft commodities and nature-based solutions for carbon sequestration.

“Nature markets are a bridge to a total shift in our economic system.” said Sandrine Dixon-Declève, Taskforce member, co-president, Club of Rome and chair, European Commission's Economic and Societal Impacts from Research and Innovation Expert Group. “We need to start by placing a value on nature within our current financial and economic architecture but can’t stop at that. A real transition requires not only financing change through low carbon and nature-based solutions but changing our financial and economic systems to truly service people, planet and prosperity at the same time.”

Nature markets are already accounted for in markets from credit to commodities, and increased awareness of nature’s vulnerability and value is rapidly scaling up nature’s part in the economy, but most nature markets are not specifically designed to achieve sustainable economic prosperity and may actually be drivers of nature loss. The Taskforce argues that well-governed nature market can channel investments towards economic assets that deliver equitable, nature positive outcomes, and away from those that do not.

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