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The use of market-based mechanisms to address environmental externalities is a major source of enquiry in environmental economics; so I hope it may be of interest to explore the history and creation of one local nature market in detail. In 2024 the English government introduced a new policy aiming to ensure that all new developments in England leave biodiversity ‘10% better off’ than before development, with a market enabling the creation of new habitat to be sold to developers constituting part of the policy. I have been involved in the academic study of this market (primarily from an ecological perspective) and as an advisor to several UK and EU government bodies, since 2020, and have had an overview of exactly how this market has been created and developed in practice. This is not a traditional economics lecture; it is an in-depth case study into the realities of contemporary environmental policymaking and market creation.
