Science-based Markets for Nature Recovery

Lead Research Organisation: UNIVERSITY OF OXFORD
Department Name: Smith School of Enterprise and the Env

Abstract

This project seeks to construct an interdisciplinary expert and stakeholder community to uncover and pilot using 'discoverable' data to construct a usable and scientifically rigorous biodiversity dataset. To achieve that, the project will be
led by the Oxford Sustainable Finance Group, in partnership with WCMC and Catapult, in four key stages:
Stage One: Network building
Stage Two: construction of a strawman for integrating biodiversity in ESG metrics
Stage Three: Testing and revising the strawman
Stage Four: White Paper, Next Steps and Capacity Building
The project will result in:
(1) a community of committed stakeholders;
(2) a concept note of use cases of biodiversity metrics, existing data and capacity availability and gaps;
(3) a tested blueprint of what a biodiversity finance database would look like;
(4) an agreed-upon plan of next steps forward.

Publications

10 25 50
 
Description Note, this project links to NE/X016544/1, Science-based Markets for Nature Recovery

We have achieved the following in this one year project: 1. Undertaken three case studies with finance sector stakeholders to understand their requirements for monitoring reporting and verification of impacts and benefits on biodiversity; 2. Demonstrated and confirmed the value of UKCEH autonomous biodiversity monitoring systems and environmental decision support tools to the green finance investment; 3. Developed a strategic partnership with a capital investment company to commercialise these systems, tools and capabilities; and 4. Won funding with this partnership from DSIT to develop this commercial offering.
Exploitation Route Greensphere Capital LLP are working with UKCEH on a private finance investment case to develop the autonomous biodiversity monitoring systems and environmental decision support tools piloted in this project.
Sectors Environment

Financial Services

and Management Consultancy
URL https://www.ceh.ac.uk/news-and-media/news/partnership-will-provide-investment-solutions-climate-and-biodiversity-crises
 
Description Note, this project links to NE/X016544/1, Science-based Markets for Nature Recovery The Science Based Markets for Nature Recovery Project has raised awareness of the high integrity data, models, monitoring technologies and tools available to the finance sector for monitoring impacts and benefits to biodiversity. In particular, this project has had a positive influence on the Task Force for Nature Disclosures (TNFD) framework for action and reporting with our project tools now listed on the TNFD website. This new knowledge and awareness of should encourage landowners and investors to participate in financial markets for interventions that offset environmental impacts and drive nature recovery.
First Year Of Impact 2024
Sector Environment,Financial Services, and Management Consultancy,Transport
Impact Types Societal

Economic

Policy & public services
 
Title Nature-based Solutions Data and AI Algorithms 
Description Note, this project links to NE/X016544/1, Science-based Markets for Nature Recovery Thames Water aims to leverage nature-based solutions (NbS) to address river water quality issues stemming from toxin runoff in farm fields. Our project augments this approach using advanced AI technologies to monitor efficacy of the NbS implementation. We investigate two primary NbS options that involve creating buffer strips to mitigate nitrate and pesticide runoff while fostering biodiversity. The cornerstone of this initiative lies in the utilization of advanced AI algorithms which could be integrated into the E-planner tool, serving as a pivotal decision-making resource. These AI-driven extensions would elevate the tool's capabilities, enabling it to predict water quality outcomes and assess the spatial appropriateness of NbS interventions with increased accuracy. In the context of the 4m-6m buffer on cultivated land, AI algorithms would assume a central role in monitoring compliance with prescribed practices. They could analyze farmer-supplied photographs and satellite imagery, scrutinizing every detail to ensure adherence to specified guidelines, including the precise application of grass/wildflower mixes and the exclusion of fertilizers or grazing. Similarly, for the 4m-6m buffer strip on improved permanent grassland, AI technologies would play a crucial role in monitoring activities such as cutting edges and preserving uncut strips for grazing. Again, farmers provide essential data, including maps and photographs, which undergo thorough analysis by AI algorithms to verify compliance and gauge the efficacy of implemented measures. The funding mechanism for these NbS projects, facilitated through bonds issued by Thames Water, would underscore a commitment to transparency and accountability. The integration of AI-driven monitoring mechanisms ensures that outcomes are meticulously tracked and evaluated, aligning with the objectives outlined in another related NERC IFB project report 'Robust ESG Data for Biodiversity: Towards a Spatially-Sensitive Approach to Sustainable Finance'. This report explores innovative approaches to fund allocation and the strategic utilisation of data for monitoring NbS outcomes, emphasising the transformative potential of AI in environmental stewardship. 
Type Of Material Database/Collection of data 
Year Produced 2024 
Provided To Others? No  
Impact None yet 
 
Description NERC Joint Integrating Finance and Biodiversity and Economics of Biodiversity Conference 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Postgraduate students
Results and Impact Purpose: presentation and discussion of findings from phase I of the IFB programme (Oxford REDB Project presentation) and discussion of the aims of the IFB programme overall including Phase II planning.
Year(s) Of Engagement Activity 2024
 
Description Thames Water Buffer Data Discussion with the Environmental Change Institute (Oxford University) 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach Local
Primary Audience Professional Practitioners
Results and Impact Note, this project links to NE/X016544/1, Science-based Markets for Nature Recovery


The Environmental Change Institute (Oxford University) advised us on existing technology and data sources for monitoring buffers for the Thames Water nature-based solutions to improve river water quality. Buffer zones are hard to identify from satellite imagery and even field margins are difficult to identify from aerial imagery. However, margins can be more obvious at different times of the year, for example, after harvest where there is bare soil for some time. Farmers have sensors and monitors in their tractors and collect data about soil moisture content. This could help ensure compliance with Thames Waters' NbS requirements as the farmers use this to control fertilizer and pesticide rates for precision farming. This information is not public but the National Accounts report on how much fertilizer and pesticide is being used per farm every year. Although buffer grazing was specifically discouraged in Thames' NbS requirements, ECI noted a little bit of grazing is good for grassland - lets the flowers thrive - but the grass shouldn't get too low. Overall, healthy buffers should tall and thick and this is measurable from aerial imagery.
Year(s) Of Engagement Activity 2024