Your questions answered
Answers to Frequently Asked Questions will be published here. If you have a question that hasn't been answered, then please contact us directly.
Please see video responses to some of our FAQs below. Scroll down for the complete set of written FAQs.
A LANDHOLDER'S PERSPECTIVE
We interviewed one of our landholders to capture their experience of participating in the Bristol Avon Catchment Market. Watch the video here.
A Catchment Market is an online marketplace where Nature-based Projects can be sold, and credits for the Environmental Services delivered by these Projects can be bought.
Nature-based Projects are habitat creation, restoration or enhancement projects that deliver environmental services. Examples of Nature-based Projects include creating wetlands, planting new woodlands, and reversion of arable farmland to species-rich grassland.
Environmental Services include biodiversity and water quality improvements, natural flood management, carbon sequestration and other outcomes delivered by Nature-Based Projects.
Multiple Environmental Services can be delivered from a single Nature-based Project, for example a wetland may deliver biodiversity improvements as well as reducing Nitrogen flows into rivers and streams.
Environmental Credits are a form of intangible property that represent the Environmental Services delivered by a Nature-based Project.
Bristol Avon Catchment Market Standards are being developed in collaboration with Natural England and the Environment Agency to quantify the Environmental Services delivered by different types of Nature-based Projects. Environmental Credits will be issued by the Market Operator once it has verified that a Project has been implemented to agreed Project Specifications.
Project Suppliers
Landholders who are willing to deliver Nature-based Projects on their land are referred to as Project Suppliers.
Farmers and land managers in the Bristol Avon Catchment area can participate in the market. Within the catchment, the Avon Wildlife Trust and the Wiltshire Wildlife Trust have identified priority locations for projects that deliver the greatest environmental benefits.
Landholders will need to demonstrate that they will have legal control of the land for the duration of any contract to establish and maintain the Nature-based Project(s).
Credit Buyers
Environmental Credits are typically bought by organisations that have regulatory obligations or voluntary commitments to reduce their environmental impacts. These organisations are referred to as Credit Buyers.
Businesses (credit buyers) will need to demonstrate that they meet the Ethical Buyer requirements [link to ethical buyer form when available] of the market and are buying the credits to meet their own regulated obligations or voluntary commitments.
Information about the market will be available on this website.
You can contact the Bristol Avon Catchment Market team at contact@bristolavoncatchmentmarket.uk
Upcoming event infomation is available here
The Bristol Avon Catchment Market is being delivered by:
The Market Operator (MO) is the organisation that establishes and operates the Catchment Market.
The Market Operator:
EnTrade is the Market Operator for the Bristol Avon Catchment Market.
The Bristol Avon Catchment Market is looking for woodland, wetland, grassland, grassland enhancement and scrub mosaic projects in targeted areas within the Bristol Avon Catchment area.
The Avon and the Wiltshire Wildlife Trusts have identified areas within the catchment where Nature-based Projects can support the delivery of strategic, landscape-scale priorities.
The Avon and the Wiltshire Wildlife Trusts have dedicated resources available to support landholders to identify and develop project opportunities.
Draft Catchment Opportunities Statement:
Provides information about the types and locations of projects that can be sold through the market.
Expression of Interest (EOI) for Project Supply
Landholders will be invited to express their interest in developing a Nature-based Project on their land based on the opportunities in the Draft Catchment Opportunities Statement.
To submit an EOI, participants first register on the platform. The EOI will include:
The EOI can be completed by the landholder or their Registered Agent
The EOI is not a binding a commitment to participate in the market.
Screening
Nature-based projects will be screened for their eligibility to participate in the Market. Screening will involve checking:
Project development
The Bristol Avon Catchment Team will work with landholders to support the development of projects to meet the Project Specifications.
The market will be open to buyers for all of the Environmental Services for which a Nature-based Project has been accredited.
Yes, landowners can retain the rights to Environmental Services for which there are no buyers in a Market Round.
Whether a landowner can sell these Environmental Credits at a later date will depend on the type of credits involved and any rules imposed on their sale by regulators.
Projects will need to be designed to meet Project Specifications. Some of this may require specialist expertise. We recommend that you get in touch with the Bristol Avon Catchment Market team to discuss your project in more detail.
Landholders that are interested in participating in the market should participate in the Expression of Interest process. Information about the EOI will be available on the Bristol Avon Catchment Market website.
Nature-based Projects eligible in this market may require consents or permissions. These would need to be in place before project establishment can occur. It is your responsibility, as the landholder, to get any necessary consents in place for your project. The Bristol Avon Catchment Market team will be available to give guidance and support and land advisors may be able to help, so do ask for advice.
An overview of the market is available here
The payment you will need to make for the Environmental Credits will depend on the supply of Nature-based Projects and the offers made by Project Suppliers.
If your bid is sufficient to match the offers made by Project Suppliers, you will pay your bid price less the discount for your share of the surplus from the trade.
The payment you will receive for a Nature-based Project will depend on the type, scale and location of the Project and the duration of the Landowner Agreement.
It will also depend on the offer you make to supply the project, and whether the amount businesses are willing to pay for the environmental credits from the project is sufficient to match your offer.
If your offer matches the bids made by Credit Buyers you will receive your offer price plus the bonus for your share of the surplus from the trade.
Nature-based Project Agreements will be in place for at least 30 years.
The market provides a way for landholders to earn revenue from projects that deliver environmental improvements on their land. The market approach helps to ensure that landholders benefit from the value of Environmental Services for which there are buyers.
The rules for how the Environmental Land Management Scheme (ELM) will interact with environmental markets are still being determined by the Government. Landholders need to be paid a fair price for the environmental services their land delivers. Government and its agencies can use the market to purchase environmental services needed to achieve environmental targets.
The Bristol Avon Catchment Team is available to discuss how your environmental goals could be met through the Bristol Avon Catchment Market. This will include us working to understand the level of positive impact that you want to achieve, and how this translates into environmental credits.
The amount you bid for credits is entirely up to you and will depend on what you are aiming to achieve, and the budget you have available to do this. Because it is a competitive market, the Bristol Avon Catchment Team can not provide you with specific guidance.
Buyers need to complete the Biodiversity Metric Calculator so that EnTrade understands their biodiversity requirements.
The market settlement mechanism is designed to match Buyers with Projects in accordance with the requirements of the Biodiversity Metric.
There is no minimum Credit Requirement, and a Buyer may register a Credit Requirement of any quantity.
A Bid should be the maximum amount a Buyer is willing to pay to meet their Credit Requirement. A Bid can be made as either an amount per Credit, or a total amount for the full Credit Requirement.
To be successful in the Market a Bid will need to exceed the cost per Credit of:
Information about the on-going payments for land use and maintenance, EnTrade’s Fees and other costs are published in the Catchment Opportunities Statement for each Market Round.
A successful Buyer will never pay more than their Bid.
A Buyer may pay less than their Bid if there is a surplus from the trades in the Market Round. Buyers will receive their share of any surplus in the form of a discount on their Bid.
Buyers whose Bids are too low to meet Supplier Payments, EnTrade Fees and other costs will be unsuccessful in the Market Round.
Once the Market Round is complete each unsuccessful Market Participant will receive a report that shows how their bid or offer compared to successful Bids and Offers.
The Bristol Avon Catchment Market Team cannot provide information about the amount a Buyer may choose to bid.
Buyer Bids need to cover the costs of maintenance and monitoring which are set up front and published in the Catchment Opportunities Statement for each Market Round.
The Bristol Avon Catchment Market is not an auction. Two Bids of the same value can both be successful in a Market Round.
However, the market is competitive. Therefore, the highest Bids have a greater chance of being successful.
The Settlement Mechanism developed and administered by the University of Exeter matches Buyers Bids to Supplier Offers to determine whose Bids and Offers are successful.
The Settlement Mechanism also fairly allocates any surplus generated by the trades in the Market according to the contribution of a Buyer’s Bid and a Supplier’s Offer to that surplus.
If there is a surplus in the Market, higher Bids are more likely to receive a discount.
Buyers should note that EnTrade will report any evidence that Market Participants may have illegally coordinated their Bids or Offers to the Competition and Markets Authority.
The Market Settlement process is explained in this short animation.
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