Version history

Updated from Version Version 1.2 (10 June 2024) to Version 2.0 (17 February 2025)

Version 2.0 of the Market Rules (‘Rules’) incorporates changes made as a result of a comprehensive review of the Rules carried out by the Environmental Markets Board (‘Board’) after twelve months of its operation.

Version 2.0 takes into account; the outcomes of a legal review carried out by Freeths LLP, a Market Operator compliance audit carried out by Soil Association Certification, input from the Market Operator and stakeholders, as well as the Board’s own experience and emerging principles for governance of nature markets.deleting the definition of ‘Settlement Rules’ and adding a new definition of ‘Matching and Allocation Rules’ to regulate how Supplier offers, and Buyer and Investor bids are matched, and the surplus from the resulting trades is allocated.

Key changes to the Rules include: 

• amendments to Part 8 to reflect the establishment of the Board under its own Terms of Reference and its role in market oversight.
• setting out the role of the Rules in an overall market governance framework, along with the specific role of the Rules in the practical operation of the Board.
• the mechanism by which the authority and enforceability of the Rules is established through a legally binding agreement(s) with a Market Operator(s).
• new rules in Part 8 to establish practical enforcement mechanisms for Market Operator compliance, and procedures to be followed in the event of voluntary or involuntary market exit by a Market Operator.
• amendments to Parts 6 and 7 to clarify the distinct roles of Compliance Monitoring and Performance Monitoring in ensuring project and credit integrity. 
• new rules in Part 7 to establish the process for approval and amendment of Monitoring Plans and the consequences if a proposed plan is not approved.
• amendments to Part 8 to reflect the establishment of the Scientific Advisory Group under its own Terms of Reference.
• aligning definitions and terminology with emerging approaches to standard development and market assurance.

Updated from Version 1.1 (23 October 2023) to Version 1.2 (10 June 2024)

Version 1.2 of the Environmental Market Rules incorporates the following amendments made by the Board on 10 June 2024:

• deleting the definition of ‘Settlement Rules’ and adding a new definition of ‘Matching and Allocation Rules’ to regulate how Supplier offers, and Buyer and Investor bids are matched, and the surplus from the resulting trades is allocated.
• making consequential amendments to the definitions of ‘Settlement’ which occurs when the Market Operator confirms the successful bids and offers, and ‘Settled Project’ as the subject of a Market Agreement between the Supplier and Market Operator that comes into effect automatically at Settlement.
• adding a new purpose for the Catchment Opportunities Statement to publish the the fees that will be charged to by the Market Operator, and the costs of Compliance and Performance Monitoring, and Market Governance (Rule 3.2.1).
• setting out the basis by which the Board will approve a Catchment Opportunities Statement, including the requirement for Market Operator fees to be transparent and fixed for the Market Round (Rule 3.2.3).
• renaming the advisory group to the Board on Standards and Monitoring to the Scientific Advisory Group.
• updating the standard to apply to biodiversity gain to the new statutory biodiversity metric (Appendix 1).

Updated from Version 1.0 (28 June 2023) to Version 1.1 (23 October 2023)

Version 1.1 of the Environmental Market Rules incorporates the following amendments made by the Board on 23 October 2023:

• adding a new rule to clarify the role and obligations of Registered Agents of a Market Participant (Rule 1.4.3).
• enabling the Board to approve different Market Settlement Rules for different Environmental Markets (Rule 3.4.1).
• adding an obligation on a Market Operator to obtain evidence of a Credit Buyer’s Credit Requirement from the relevant authority(ies) (Rule 3.5.2).
• specifying the acknowledgements, acceptances and approvals that must be obtained from Market Participants by a Market Operator prior to participation in a Market Round (Rule 3.5.4).
• clarifying the obligations of the Market Operator, Credit Buyers and Credit Investors at Market Settlement, and adding and amending definitions to support these changes (Rule 3.6.3).
• confirming that Market Agreements between the Market Operator and a successful Market Participant come into effect at Market Settlement (Rule 3.7.1).
• confirming the requirement on a Market Operator to publish Standard Terms and Conditions and Template Confirmations prior to the start of a Market Round (Rule 3.7.2).
• clarifying the obligation on a Market Operator to seek approval from the Interim Board of the Credit Reserve prior to a Market Round (Rule 7.2.2).
• extending the skills and experience required by the Interim Board to include agricultural and/or catchment science and farming and/or land management (Rule 8.1.2)