Our thinking

Green coins for cities

24 January, 2025

In more news from Davos, our friends at the Nature & People Foundation unveiled an innovative framework aimed at unlocking private investment in urban biodiversity. We’re proud to see this groundbreaking framework come to life, having collaborated with the Foundation and Mishcon de Reya in developing this idea.  

The Urban Biodiversity Standard (UBS) is a financial mechanism that creates tradeable credits for increasing biodiversity in cities, transforming urban nature into a measurable and investable asset that generates environmental and economic value. 

So, how do UBCs work? It’s straightforward: one credit is generated annually for every 100 m² of new vegetation cover, for up to 20 years. This clever system provides a tangible way to value biodiversity services in cities, essentially creating a market for urban nature initiatives. 

What makes this approach particularly exciting is its blend of environmental goals and financial incentives. Cities can boost their revenue by selling UBCs, potentially easing fiscal pressures. Plus, these credits can serve as collateral for loans or back green bonds, opening up new financing avenues for urban development. 

With urban areas set to house 70% of the world’s population by 2050 and global warming surpassing 1.5°C in 2024, the need for nature-based solutions in cities has never been more urgent. Greener cities deliver huge benefits to human wellbeing and economic growth.  

Initial pilot projects in Formentera and Rio de Janeiro are already showcasing the potential of UBCs to reimagine urban ecosystems. As the Foundation expands these initiatives in 2025, we’re looking at a promising blueprint for more resilient, liveable cities. 

The future of urban sustainability just got a lot more interesting. 

By Emma Alajarin