In a written answer on 17 July 2026, Environment Commissioner Jessika Roswall outlined the Commission's approach to financing biodiversity conservation and nature restoration under the next EU budget, emphasising that innovative tools such as nature credits should complement rather than replace public funding. The answer responds to a parliamentary question from César Luena (S&D, Spain), who had expressed concerns that market-based instruments could undermine EU environmental objectives and that harmful subsidies persist.
Roswall pointed to the Commission's proposals for the 2028-2034 Multiannual Financial Framework (MFF), which include a legally binding 35% climate and environment spending target covering climate mitigation, adaptation, biodiversity, water, pollution prevention and circular economy. Implementation of the Nature Restoration Regulation (2024/1991) would be supported via National and Regional Partnership Plans, which must align with national restoration plans. The EU facility would continue LIFE programme activities for strategic nature projects, governance, enforcement and civil society.
On nature credits, Roswall argued they could mobilise private finance and reward nature-positive actions, creating additional revenue streams for land and sea stewards while retributing the social value of restoration. She stressed that such credits would be subject to robust safeguards against greenwashing and could be combined with upstream public support to de-risk investments. An expert group has been established to ensure alignment with principles of ecological integrity, transparency and permanence of biodiversity outcomes.
Regarding the 'do no significant harm' principle, Roswall said the proposed MFF performance framework would be supported by proportionate guidance to ensure EU spending does not undermine environmental objectives. The answer contained no specific numerical targets or deadlines for phasing out harmful subsidies, nor did it detail how the guidance would be enforced. The Commission's exploratory work on nature credits continues, with further legislative proposals expected in the context of the next MFF negotiations.