Market overview

Watch this 5 minute animated film to learn more about how the market works, and how the settlement mechanism ensures fair payments for both buyers and sellers.

Project development

The first step for landholders and farmers will be to submit an Expression of Interest to develop Nature-based Projects that can deliver environmental services such as nutrient mitigation, and biodiversity improvements.

Projects that meet the requirements of the Expression of Interest, subject to confirmation, can move to the detailed project design phase, supported by our catchment market team and independent experts. 

The Projects will need to be designed, delivered and maintained according to Project Specifications which will be attached to the Nature-based Project Agreements.  The Project Specifications are currently under development and will be made available on this website.

Market registration

The Catchment Market Rules will govern the operation of Catchment Markets, and will:

• ensure that that Market Participants understand their rights and responsibilities 
• provide a robust and transparent mechanism to facilitate investment in Nature-based Projects and trading the Environmental Services generated by these Projects.

To participate in the market, landholders must register as a market participant on the Solent Catchment Market Platform. 

Landholders then need to register their proposed Nature-based project, providing the information needed to be accredited for the environmental services it will deliver.

Project accreditation

The Market Operator accredits the Projects, quantifying the relevant number and type of environmental credits that Project is expected to deliver if delivered and maintained according to the Project Specifications.

Catchment Opportunities Statement

The opportunities for projects and the environmental services they deliver to be bought and sold in a market round will be explained in a Catchment Opportunities Statement.

Market round

In the Market Round landholders that have Registered a Project for sale in a Market Round must make a Project Offer.

A Project Offer needs to cover:

• the use of the Project Land for the term of the Landholder Agreement:
• up to 5 years for short-term Projects
• 80–125 years for wetlands and woodlands for on-going Projects
• the cost of designing and delivering the Project to the Project Specification (including securing relevant consents);
• the cost of maintaining the Project in accordance with the Management Plan;
• the cost of the compliance reporting required.
  

Settlement

The market settlement process has been designed by the Land, Environment, Economics and Policy Institute at the University of Exeter. The process, known as the Lindsay Mechanism, ensures payments are fair both for project suppliers and businesses buying environmental credits. 

Surplus from trades is allocated fairly between suppliers (a bonus on their offer) and buyers (a discount on their bid).

Contracting and Delivery

If successful in the market, landholders will enter into a Nature-based Project Agreement with the Market Operator to deliver the project and maintain it to the required standard. 

A payment schedule will be agreed, and regular monitoring will make sure projects are delivering the expected environmental outcomes.

Understand Credit needs

The first step for potential Credit Buyers is to understand their need for credits.

If you are interested in purchasing Environmental Credits through the Solent Nutrient Market then please contact us directly.

Market Registration

The Catchment Market Rules will govern the operation of Catchment Markets, and will:

• ensure that that Market Participants understand their rights and responsibilities 
• provide a robust and transparent mechanism to facilitate investment in Nature-based Projects and trading the Environmental Services generated by these Projects.

To participate in the Market, buyers need to:

1. register as a Market Participant 
2. register the type and quantity of Environmental Credits that they require.
   

Catchment Opportunities Statement

The Catchment Market Rules will govern the operation of Catchment Markets, and will:

The opportunities for projects and the environmental services they deliver to be bought and sold in a market round will be explained in a Final Catchment Opportunities Statement.

Market Round

When the market round opens, buyers enter bids for the quantity and price for each type of environmental credit that they need.

Settlement

The Settlement Process matches bids for Environmental Credits with offers for project supply. Where there is a match the successful Credit Buyers will be notified by the Market Operator. Surplus from trades is allocated fairly between suppliers (a bonus on their offer) and buyers (a discount on their bid).

Contracting and Delivery

Successful bidders will enter into an Environmental Credit Supply Agreement with the Market Operator and receive the credits purchased.