WIREDGOV

Paper describing the results and analysis of the Ecosystem Restoration Code (ERC) engagement phase and the priorities identified for the final stages of the ERC project to January 2026.

Introduction

In our 2024 Natural Capital Market Framework, the Scottish Government (SG) committed to supporting the development of an Ecosystem Restoration Code (ERC) for Scotland as a new high-integrity market mechanism that could attract responsible private investment into nature restoration and biodiversity projects. This commitment is being delivered in 2025 via an SG-NatureScot partnership project.

In May 2025, we published the ERC Engagement Paper. This described the rationale for the ERC and set out an initial understanding of the required nature / biodiversity market development in Scotland in terms of:

1. Ensuring a high-integrity market;
2. Supply-side – land managers and landowners;
3. Demand-side – investors in and buyers of nature credits; and
4. Alignment with SG policy and funding.

This paper was then the basis for a programme of engagement with market stakeholders, between May and July 2025. The aim of the engagement was to:

Test-out the baseline understanding set out in the ERC Engagement Paper; and gather further insights and recommendations from stakeholders to inform the development of a high-integrity ERC that works well for all market actors.

The engagement included: (a) three two-hour online workshops covering, separately, the themes of integrity, supply and demand; (b) a two-hour online workshop with the Scottish Nature Finance Pioneers (SNFP) covering all four of the Engagement Paper themes; and (c) an online survey on SG Citizen Space. Seven individual detailed written responses were also submitted. During the engagement officials spoke to around 200 stakeholders from almost 100 organisations. Further details of the engagement phase are included at Annex A.

This paper summarises and analyses the results of this engagement. It then sets out a series of priorities for the next stage of the ERC project, informed by the analysis.

The remainder of this paper is structured as follows:

• Chapter 2: Comments on the SG’s objectives and ecosystem approach framing for the ERC project;
• Chapter 3: Comments and priorities for a high-integrity ERC;
• Chapter 4: Comments and priorities to address ERC supply-side requirements;
• Chapter 5: Comments and priorities to address ERC demand-side requirements; and
• Chapter 6: Comments and priorities to address ERC policy alignment issues.

Click here for the full press release