Let Biodiversity Become Your Most Valuable Asset
With NaturaTua, your organization will have the opportunity to promote, monitor, and communicate improvements in biodiversity. This is achieved through investments in the protection and restoration of ecosystems as the primary objective, in the form of Biodiversity Units (BDUs). Through our strategic partnership with the Swedish conservation foundation Framtidens Natur & Kulturarv, the land is managed with the goal of continuously increasing its natural values. At the same time, we believe that the economic value of the land will also benefit.
News
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Listen to an exciting feature (in Swedish) from P4 Jönköping on May 20, 2024, where Peter Neubauer from NaturaTua Ltd. and Sindre Magnusson from the foundation Framtidens Natur & Kulturarv discuss the plans for the first property in Ustorp, Jönköping County.
- Part 1 (external link)
- Part 2 (external link)
- Part 3 (external link)
- Part 4 (external link)
NaturaTua aims to reverse the negative trend in biodiversity in Sweden. We enable the investment of private capital in conservation efforts that benefit biodiversity and lead to the long-term protection of nature. To this end, we have created a format for alternative land investments, offering the potential for returns on invested capital.
Property #1 in Ustorp, Eksjö mun., 57 hectares.
NaturaTua aims to reverse the negative trend in biodiversity in Sweden. We enable the investment of private capital in conservation efforts that benefit biodiversity and lead to the long-term protection of nature. To this end, we have created a format for alternative land investments, offering the potential for returns on invested capital.
Peter Neubauer, founder of NaturaTua Ltd.
What Are Biodiversity Units?
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Central to the setup is also that the customer receives proof of additionality, meaning that the purchase of BDUs results in a positive difference in biodiversity compared to what would have otherwise occurred. Additionality mainly means that
- natural values are preserved that otherwise risk being lost
- actions are taken to increase biodiversity
- part of the cost goes to the permanent protection of these values, administered by the entity responsible for conservation management.
- natural values are preserved that otherwise risk being lost
- The price of NaturaTua's Biodiversity Units consists of the cost of placing land under conservation management (including delegated authority established in the usufruct agreement), specific actions (in accordance with the established management plan), administration, and capital costs. 20% of the total cost of BDUs is allocated to permanent protection. One BDU represents 1 hectare of land and its development over the unit's duration, e.g., 10 years.
- The purpose of Biodiversity Units (BDUs) is to enable transparent and accountable investment in land improvement with a focus on increasing biodiversity. NaturaTua Ltd. acquires properties to place them under conservation management by an independent party through the sale of BDUs. The acquired land is placed in a separate real estate company where external investors purchase shares via preference shares, which finance the acquisition itself.
- NaturaTua owns a minority stake in each such real estate company through voting common shares and in this way, it can ensure effective management and can develop an offering with BDUs to finance operations and permanence.
- The management is handled by the non-profit foundation Framtidens Natur & Kulturarv (IFNK), which serves as a way to assure customers of the quality of the conservation efforts. The manager, IFNK, in accordance with its statutes, can only prioritize actions that benefit biodiversity. The foundation cannot compromise in order to increase revenue.
Calculation of Starting Price
NaturaTua calculates a starting price based on the costs of conservation management (including permanence), capital costs (land purchase), and administration. A biodiversity unit represents 1 hectare under conservation management and has a cost per management year. We have deliberately chosen to highlight conservation management instead of future results. This is because what we call target biotopes (the desired future state of nature) cannot be guaranteed. This is the basis for pricing. Buyers of BDUs receive information about the baseline, i.e., the natural values already present (NVI, Swedish Standard 199000:2023) on the land, as well as what the target biotopes are (the management plan).
Purchase of Biodiversity Units
On a specific property, all BDUs for a year will have the same price and the same average content. Therefore, it is not possible to choose a specific meadow or forest. The sale of BDUs will initially be conducted collectively for all units from a project. This means that all BDUs for the entire property will be sold as a single package. Currently, we intend to sell all BDUs from a property, for the first 3-5 years, in the same transaction for simpler administration. When the duration of a BDU purchase expires, a new sale is conducted for a new duration. NaturaTua will begin collaborating with the first customers in 2024. Discussions with new potential customers are ongoing. Expressions of interest can be made by contacting the chairman of the board, Peter Neubauer.
Conservation Management
When purchasing BDUs, resources are allocated to initiate management in accordance with the established management plan. The aim is to optimize circumstances for biodiversity, given the local and regional natural conditions and land history. The foundation Framtidens Natur & Kulturarv cannot make economic compromises to increase revenue at the expense of biodiversity goals. When NaturaTua acquires a property, work begins to establish the baseline (NVI) and management plan (target biotopes, actions). Implementation of the management plan requires the sale of BDUs. The number of years of conservation management is determined by business agreements regarding BDUs. While awaiting these, necessary preparatory measures are taken. If actions from the management plan are initiated before a business agreement, this will be clearly reported to prospective customers.
Follow-up and Promotion
Each year, the buyer receives a report on the actions taken. The goals in the management plan are monitored via indicators and recurring natural value inventories every 5-10 years. Buyers of BDUs are encouraged to promote their purchase of BDUs and their value for biodiversity. It is crucial for NaturaTua that these biodiversity units are NOT used as compensation instruments. In practice, this means we expect buyers to separately report negative impacts on biodiversity and the positive actions taken—not as a net result. However, we welcome the use of BDU purchases to enhance brand and goodwill. There is also the opportunity for customized study visits and to observe wildlife in real time via wildlife cameras.
Permanent Protection of Nature
To finance operations and management, NaturaTua intends to sell biodiversity units. These units will initially be sold at a cost-based price. In addition to the costs for conservation measures, operations and administration, and a capital cost based on the land investment, there is also a cost to provide permanent protection of the land. This cost amounts to 20% of the total cost for the BDUs. For example, if the costs for conservation measures, operations, administration, and capital costs are 8000 SEK per BDU, the addition for permanence will be 8000 SEK x 20% = 1600 SEK, making the total price per BDU 9600 SEK. The cost for permanence is included in the costs for conservation measures and thus goes to the land manager (IFNK), who will allocate these funds for future land purchases of land that will then be given permanent protection.
Natura Tua is Latin and means Your Nature.
NaturaTua Ltd. was founded in 2022, initiated by tech entrepreneur Peter Neubauer. NaturaTua is Latin and means “Your Nature.” The company provides investors and customers the opportunity to become owners of nature and stewards of biodiversity. NaturaTua’s business idea is centered on purchasing properties and subsequently offering services—biodiversity units (BDUs)—aimed at further improving conditions for biodiversity.
NaturaTua also believes that there will be future buyers of natural land who share the same purpose: to promote biodiversity. These buyers could be the state, municipalities, foundations, interest organizations, or companies that see value in owning and managing land rich in biodiversity.
If there is both investment capital and buyers for BDUs, the business can be quickly scaled up. To assure both investors and customers that biodiversity is at the core of our business idea, we aim to collaborate with a non-commercial partner whose primary purpose is conservation. Therefore, we have initiated a partnership with a conservation foundation: Framtidens Natur & Kulturarv.
We believe this is a powerful way to mobilize private funds in favor of biodiversity while minimizing the risk of greenwashing. Based on our continuous monitoring of the external environment, this is one of the most forward-thinking projects in the natural capital market and a credible mechanism to help us achieve the ambitious global goals set within the framework of COP15.
In the spring of 2024, NaturaTua (five investors) completed its first acquisition: Ustorp 1:6. This is 57 hectares of land, primarily consisting of overgrown former meadows, pastures, and fields, as well as mixed forest and cultivated meadows. Work is now underway on the natural value inventory and management plan.
Alder swamp at the property Ustorp 1:6.
Biodiversity is not only beautiful to behold; it is also indispensable for our survival and well-being.
Biodiversity encompasses all forms of life on Earth. It can be categorized into ecosystem diversity, species diversity, and genetic diversity. In Sweden, the term commonly used is habitat types which partially corresponds to ecosystems. The term biotope is used to indicate specific variants of a habitat type. Human-caused changes to our planet are rapidly reducing biodiversity.
Biodiversity is not only beautiful to behold; it is also indispensable for our survival and well-being. Consider everything we take for granted: the food we eat, the air we breathe, the medicines we need, raw materials for industry, and a balanced climate—all of these directly or indirectly depend on a rich diversity of life on Earth.
The problem and objectives have been established in numerous UN-related conferences and forums. In 2022, a UN conference on biodiversity (CBD COP15) was held in Montreal. The world’s countries agreed on new and ambitious goals (Global Diversity Framework). One overarching goal was to protect and restore 30% of all areas, on land and at sea, by 2030. Achieving this will require both public and private initiatives.
“NaturaTua belongs to a rapidly growing group of organizations that believe it is possible to economically value and trade biodiversity. Investments in biodiversity can improve the chances of stabilizing threatened ecosystems.”
Biodiversity is a shared asset that, for the most part, has yet to be priced. NaturaTua belongs to a rapidly growing group of organizations that believe it is possible to economically value and trade biodiversity. Investments in biodiversity can improve the chances of stabilizing threatened ecosystems.
We believe that trading biodiversity—in a form that we call Biodiversity Units (BDE)—can be scaled up in the coming years. NaturaTua Ltd.’s business idea is to acquire land to place it under conservation management, thereby increasing both the biological and economic value of the land. Customers pay for a certain amount of conservation measures to be implemented, with specific determinations regarding time, location, and quality.
The biodiversity units offered by NaturaTua Ltd. are based on efforts aimed at promoting biodiversity. One way to assure customers that this is the case is by delegating authority and conservation management to an external party. NaturaTua has chosen to collaborate with the non-profit foundation Framtidens Natur & Kulturarv.
NaturaTua aims to sell the land and invest in the next, similar project within a suitable timeframe. However, a sale can only be made to a buyer who can guarantee permanence (e.g., conservation foundations, the state when establishing nature reserves, and other long-term actors).
Our Model for Land Improvement
ACQUISITION:NaturaTua acquires properties with financing from external investors, given the limitations and opportunities provided by the Land Acquisition Act. It is usually difficult to obtain acquisition permits for purchasing land from private individuals.
Important criteria include a reasonable price, existing natural values, and the potential for the restoration of biotopes and/or protection-worthy populations, as well as control over the land. Certain forms of biotope restoration, primarily the conversion from cultivated monoculture forests to desired biotopes such as natural forest biotopes and pastures, generate revenue. This is a result of implementing the desired management plan. This improves the economics of management, which in turn leads to a lower cost-based price for biodiversity units (BDUs).
To be able to offer the sale of BDUs, the current situation—baseline—of biodiversity must be established as quickly as possible after an acquisition. For this purpose, specialists are hired to conduct natural value inventories (NVI, Swedish Standard 199000:2023).
IMPROVEMENT PROCESS: NaturaTua has decided to delegate authority and the implementation of the established management plan to the conservation foundation Framtidens Natur & Kulturarv (IFNK). Immediately after NaturaTua completes an acquisition, IFNK is tasked with initiating the management. This management is established through short-term usufruct agreements while awaiting a customer to purchase BDUs from the respective land.
Only when a customer purchases BDUs is a new long-term usufruct agreement signed between NaturaTua and IFNK, which takes effect after the existing agreement expires. This means that IFNK receives long-term agreements only when BDU sales occur, ensuring that additionality is secured for these units.
In addition to covering conservation management, operations, and administration, as well as a capital cost based on the land investment, 20 percent of the total price for each BDU is allocated to create permanent protection of land with high and strict biodiversity standards. NaturaTua’s management partner, IFNK, receives this allocation and determines which property should be prioritized for acquisition.
MATURITY & SALE: Land with increasingly higher natural values is likely to also have increased economic value. Given that agreements with buyers of BDUs must always be guaranteed, NaturaTua will also seek to sell properties.
If a property (or part of a property) is to be resold and significant biodiversity values have been established, requirements will be imposed on the buyer. NaturaTua does not want the investments made in biodiversity—with or without buyers of BDUs—to be degraded. On the contrary, we want these values to be further strengthened.
Suitable buyers may include conservation foundations, or state and municipal entities looking to establish nature reserves (among other protection forms). However, as the biodiversity market develops and becomes established, more categories of suitable buyers may be considered. The higher the value placed on biodiversity, the stronger the incentive for a buyer to maintain and enhance natural values. This may also involve the sale of properties that have proven to be less suitable for the intended biodiversity enhancement, either wholly or partially.
The People Behind NaturaTua
Our Land Manager - Framtidens Natur & Kulturarv
Framtidens Natur & Kulturarv (IFNK) was established in 2021. The founder is a non-profit association with a similar name, Framtidens Natur och Kulturarv (non-profit association). The association appoints board members to the foundation. The purpose of this platform is to create a non-governmental complement to nature reserves. All habitat types are included except open sea. The focus is on protection as well as restoration of lost biotopes. Framtidens Natur & Kulturarv has four thematic areas on its agenda:
- Protect and restore conditions for rich biodiversity
- Protect and restore cultural heritage with a focus on the traditional agricultural landscape. Such measures are crucial for maintaining and regaining rich biodiversity.
- Natural carbon storage in forests, soil, and wetlands—when it aligns with areas 1 & 2.
- Restore wetlands and flowing water bodies to their natural state—when it aligns with areas 1 & 2.
The platform does not engage in politics or advocacy. The entire operation aims to gain control over land, collaborating with landowners and companies with similar goals. IFNK is responsible for owning land, signing land agreements, and conducting management (click here to view the foundation’s statutes in their entirety – in Swedish). The initiator of the entire platform is Sindre Magnusson, who also serves as the chairman of the foundation. Sindre Magnusson has been an idea entrepreneur and project manager in sustainable development, environmental and nature conservation, tourism, and education since the mid-1980s.
Chairman Sindre Magnusson at one of the foundation’s sites on the Swedish island of Gotland.
FAQ
When I buy a Biodiversity Unit (BDE), what am I paying for?
The buyer of Biodiversity Units pays to place land under conservation management, enabling the implementation of an ambitious management plan. The purchase ensures the maintenance of 1 hectare for periods ranging from one year to a maximum of 49 years, with extensions. Additionally, 20% of the total price is allocated for permanent protection. While we do not sell future results due to uncertainty, we offer the potential for management transformation and the management itself. We believe the likelihood of success is very high as the actions in the management plan are based on science and proven experience.
How do I know this is not "greenwashing"?
Allegations of so-called greenwashing can concern the substance of an action as well as how it is communicated. While we cannot prevent accusations, we can eliminate the factual basis for such claims by:
- Including in land agreements (authority) that the management of the land is delegated to a conservation foundation, which, according to its statutes, cannot deviate from consistently benefiting biodiversity.
- Implementing clear rules on how a BDU buyer may communicate the benefits of their purchase. A BDU buyer can communicate the benefits and additionality of their contribution, but it must stand on its own. This means the purchase does NOT serve as a receipt, proof, or certificate that a company’s negative impact has been compensated, balanced, or more. We ensure the product has transparent and trackable value. We do not take responsibility for, nor do we allow, this benefit to be related to a customer’s total or partial negative impact on biodiversity. NaturaTua does not sell compensation.
- Implementing a strict and transparent policy regarding additionality. This ensures that the benefits of the purchase, the positive difference achieved, are adequately reported. Read more about additionality under “What is additionality and how is it ensured?“.
What is additionality and how is it ensured?
Additionality means that natural values that would likely have been lost are instead preserved. It can also involve the restoration of lost natural values, leading to increased biodiversity over time with specific actions. Demonstrating additionality ensures that customers can be confident that their purchase makes a positive difference.
Fundamental to additionality is that NaturaTua Ltd. has authority over the land it owns, at least regarding aspects affecting biodiversity, before signing usufruct agreements with managers. Authority refers to the right to decide over the land, allowing NaturaTua to implement actions that can affect biodiversity.
The authority can and will be transferred to an external conservation manager through a usufruct agreement. When land is subject to forest certification standards, additionality cannot be claimed for areas exempt from forestry. If conservation measures or protection are legally required, they do not fulfill additionality criteria.
NaturaTua does not trade future results due to the uncertainty of exact outcomes. Actions are based on science and proven experience, ensuring relevance and continuous verification through monitoring. Buyers of BDUs receive assurance that their purchase makes a positive difference compared to what could have occurred. Each hectare is assessed against an additionality policy, and the results are openly reported.
How can a BDU purchase be communicated?
It is positive if buyers of BDUs want to communicate their purchase and the value for biodiversity that is created. However, it is crucial to clarify that BDUs currently cannot serve as compensation. This means that buyers of BDUs cannot claim that compensation, balancing, or net gain has occurred. If a company wants to describe its BDU purchase in, for example, a sustainability report, this is very positive. It is also in line with our policy for the company to report its impact on biodiversity in the same report.
The European Sustainability Reporting Standards (ESRS) provide guidelines on how biodiversity can and should be reported. ESRS E4 (Biodiversity and Ecosystems) specifies the impact factors that can lead to biodiversity loss. What contradicts our policy, however, is analysis, calculations, or similar claims that a BDU purchase can be said to have “reduced” the company’s potential negative impact on biodiversity—regarding parts of or the entire company/group. NTAB provides ready-made suggestions for wording to facilitate communication that aligns with NaturaTua’s business idea and product specifications. Communication can be developed in dialogue.
Aren't there already laws and regulations that protect nature with high biodiversity?
In Sweden, the landowner’s right to control their land is protected by the constitution. The state can sometimes force interventions in control and ownership, but the creation of nature reserves is no longer included. If the state or municipality makes an intrusion, compensation must be paid. The state’s budget for purchasing land for conservation is very limited, and the budget for managing such land is decreasing. This means that the management of already protected nature risks deteriorating. Normally, ongoing land use—agriculture and forestry—needs to change for land to “produce” maximum biodiversity. Existing laws and recommended considerations can limit ongoing land use to a lesser extent, such as general biotope protection.
The Forestry Act includes consideration rules, and a forest owner should tolerate conservation adaptation to a certain extent (up to 10%, typically 6%). New drainage is now strongly limited. The EU’s Species and Habitats Directive can trigger some protection, but this often involves very limited areas. Compensation can likely be obtained after an appeal. The difficulty of obtaining compensation has made landowners afraid to maintain or restore such values—it could result in an economic loss and significant uncertainty.
In practice, a landowner essentially has control that allows them to continue agriculture and forestry, even if it significantly degrades biodiversity, such as by felling old continuous forest or replanting unfertilized species-rich meadows/pastures. Even in a Natura 2000 area (EU), the state must compensate landowners if conservation measures significantly restrict ongoing land use, such as preserving valuable forests. In summary, the potential is significant to change land use in ways that benefit biodiversity through BDU trading. Today, there is no legislation from the EU or the Swedish state that automatically enforces the protection or restoration of larger areas of lost biotopes or populations.
When purchasing a BDU, how can I be sure that biodiversity benefits?
To ensure the best possible outcomes, the following components are included in our setup, which can also be verified by the customer:
- Strict policy for and documented application of additionality. This means we explain why a customer’s purchase of BDUs makes a positive difference. The conservation management introduced as a result of BDU purchases must be significantly different from what would have otherwise occurred. Protection of existing values is established. Biotopes are restored where a guarantee for such restoration would otherwise have been lacking.
- The legal basis for the right to conduct conservation management (authority) is analyzed and must be confirmed positive. The land cannot be tied up by existing protections, existing trade in ecosystem services, or a low likelihood of obtaining relevant land use changes for conservation, etc.
- Conservation management is delegated to a public-benefit, non-profit conservation foundation that, according to its statutes, must prioritize biodiversity and has the competence to do so.
- Management, monitoring (short-term indicators, NVI follow-up every 5 years), and reporting are transparent and open. This makes it possible to track the actual management and results in the field.
- Visit the property/land for the relevant BDU, with or without a guided tour from NaturaTua and IFNK.
What does cost-based pricing for BDUs mean?
One BDU consists of 1 hectare under conservation management over the BDU’s duration, e.g., 10 years, including an allocation for permanent protection, which is part of the BDU price. NaturaTua aims to be transparent about how we determine the price offered to the market. In an initial pilot, cost-based pricing will be the prevailing model, and all BDUs for the first years will be sold in the same transaction to reduce administration. Subsequently, an auction procedure will likely be applied. Besides the 20% allocation for permanent protection, the price consists of the following components:
- Conservation management involves costs, including administration and logistics, but can also generate income from subsidies and biomass sales as a result of conservation efforts. The net costs are always calculated as part of the pricing. There is also an option for additional measures—Premium option. A typical project could be the explicit reintroduction of red-listed species.
- NaturaTua incurs costs for administration, operations, and development.
- The purchase of the land has been financed by external investors, and to make the investment and capital commitment competitive, it is possible to offer a return of up to 2.5% of the investment amount per year.
The allocation for permanence is managed by the administrator (IFNK), meaning that 20% of the BDU price is used to acquire land. For example, if conservation, operations, administration, and capital costs total 8000 SEK per BDU, the addition for permanence would be 1600 SEK (8000 x 20%), making the total price per BDU 9600 SEK. Permanent protection can, but does not have to, occur on the property generating the allocation. The price represents the average cost per hectare per year for the specific property, with each property having unique costs and therefore a unique cost-based price. The calculation basis will be available to prospective BDU buyers.
Why should management costs be included in the price of BDUs? Aren't there public grants available for this?
The subsidies that can be reliably applied for and obtained are already included in the cost-based calculation. It is the net management costs that are reflected in the cost-based price calculation, see “What does cost-based pricing for BDUs mean?“. If additional public subsidies become available after the sale of BDUs, the buyer will be compensated by the allocation of additional BDUs. Alternatively, Premium measures can be implemented. These are actions in the management plan deemed too expensive for the basic option but still highly desirable. A typical example could be the reintroduction of a red-listed species that previously existed in the area.
How is the land managed before BDUs are sold?
While awaiting the sale of BDUs, the land is managed by IFNK under a short-term agreement. This is to secure existing values and prepare for conservation management. After the BDUs are sold, a usufruct agreement with IFNK will be established. The duration of the agreement and the number of hectares covered will be determined by the amount of BDUs sold.
What does "baseline" mean?
To establish a management plan and enable the sale of BDUs, the current state of biodiversity must be determined as quickly as possible after acquisition. This is the baseline—a starting point—allowing for subsequent monitoring against initial reference values. Specialists in natural value inventories are hired for this purpose. See more under: “What is a natural value inventory?“
What is a Natural Value Inventory?
A natural value inventory involves classifying natural values according to a set scale in accordance with NVI, Swedish Standard 199000:2023, and supported by Technical Specification SIS/TS 199002:2023. With a reference value, we can monitor the results of the management plan implementation. NVI also facilitates the definition of goals and actions in the management plan. Additionally, some other areas are initially mapped, including registered ancient monuments, land history (historical maps), and the carbon stock in the forest.
What is a management plan?
To manage the land effectively, a management plan is necessary. Once a management plan is approved by NaturaTua and IFNK, the land is placed under conservation management. The plan is revised at least every five years. The management plan focuses on:
- Target biotopes (the desired state) are established based on existing and potential values. A gap analysis regarding biotopes and species occurrence (red list) from a regional, national, and international perspective guides prioritization. Additionally, local natural conditions and land history are considered.
- The difference between the baseline and the desired outcome is described. For educational purposes, the future desired state (target biotopes) is also compared with a likely future outcome without conservation management.
- A list of over 200 actions has been extracted primarily from county administrative boards’ management plans (nature reserves, Natura 2000). These actions cover all habitat types and are cross-referenced with defined target biotopes. Actions can aim to actively maintain as well as restore target biotopes.
- Description of costs and revenues for a basic option versus a premium option (BDU with higher ambition/price). This includes subsidies and income from byproducts of conservation, leasing, and trading of BDUs, as well as the purchase of services, materials, and administrative costs. The type of performer for different actions and the procurement method are specified.
What happens to the biomass from conservation management?
NaturaTua actively works to identify relevant certifications and sales channels for timber and logging residues (branches and tops) from conservation management, as well as potential customers who see particular value in such products. We focus on customers who use raw materials in ways that sequester carbon in buildings and soil (biochar) for long periods—so-called long carbon cycles.
Grazing and the maintenance of grasslands will usually be leased out. Lessees must follow the established conservation management plan, which prohibits the use of natural or synthetic fertilizers and biocides. While organic farming is preferred, it is not strictly required if unavailable locally.
Is there any independent review of the inventory, management, and follow-up?
There is currently no established third-party certification for biodiversity trading in Sweden/EU. While waiting for such mechanisms, we aim for the highest possible integrity and transparency. Regarding the design of the BDU product, it is up to us to innovate and use the most suitable tools, technical solutions, and partners available on the market.
Important components are:
- Transparency regarding management plans, natural value inventories, implementation, and follow-up.
- Delegated conservation management to an external party that consistently prioritizes biodiversity—a foundation.
- External oversight of the manager (for conservation foundations through the county administrative board, authorized audits, etc.).
- Usufruct agreement (with the possibility of registration at the land survey authority/Lantmäteriet).
- Natural Value Inventories conducted by an external party with extensive experience in the mentioned SIS standard.
We believe the market for biodiversity trading will mature, and we are continuously exploring how various components related to BDUs could be externally verified.
How does your collaboration with the foundation Framtidens Natur & Kulturarv work?
NaturaTua has chosen the strategy of delegating land authority and conservation management to an external party for maximum transparency, accountability, and quality. It is appropriate to collaborate with foundations as they provide a stable organizational form. The cooperation with the manager is formalized in a cooperation agreement lasting between 3-5 years, with the possibility of extension. Land agreements (usually usufruct agreements) between NaturaTua and the manager can cover a much longer period (up to 49 years, correctly managed the agreement follows to any new owner).
NaturaTua has initiated cooperation with the foundation Framtidens Natur & Kulturarv (IFNK), and it is IFNK that will manage NaturaTua’s first project in Ustorp. The foundation receives the usufruct of the land (legally binding agreement) as a result of the sale of BDUs. In this way, the land is subjected to conservation to the extent that there are customers willing to pay. IFNK guarantees quality in the work to achieve and maintain the state deemed best for biodiversity, given the local, regional, and historical conditions as well as the economy. IFNK has significant expertise in conservation biology, forestry, agriculture, law, and economics.
What are the criteria for selecting a property to invest in?
Important criteria include reasonable pricing, existing natural values, potential for habitat restoration and/or protection of valuable populations, as well as availability of land. Certain forms of habitat restoration, particularly transitioning from cultivated forests to desired habitats such as natural forest habitats and pastures, generate revenue. This is a result of implementing the desired management plan, which improves the economic aspects of management, leading to a lower cost-based price for BDUs.
In addition to this, an assessment must be made regarding whether it is possible for NaturaTua (with the assistance of financing from external investors) to acquire the property given the limitations and opportunities outlined by the land acquisition law. Typically, it is challenging for a company to obtain acquisition permits for purchasing land from private individuals.
How can NaturaTua make a profit?
NaturaTua generates revenue through the sale of BDU. When sold at cost-based prices, NaturaTua takes a portion of the sales revenue to cover its operational and administrative costs (including expenses for initiating new projects). NaturaTua can generate profit by selling BDU at a price above the cost-based price, for example, through auction processes. Furthermore, NaturaTua can make a profit by selling all or parts of properties, or potentially by charging fees to investors who invest in NaturaTua’s property acquisitions. See more under: Doesn’t the sale of land risk compromising investments in biodiversity?
What happens to the profit, and can those who invest in NaturaTua's properties earn a return on their investment?
According to the cost-based calculation, (see: What does cost-prices pricing for BDUs mean?) pricing takes into account the capital costs of the invested capital. Additional returns for investors may arise from the sale of all or parts of properties. If/when profits occur in NaturaTua, the intention is for this capital to be primarily invested in new projects – that is, used to acquire properties with BDU potential.
Can an investor in a NaturaTua property sell shares at a profit?
Yes. However, the shares in the properties are not liquid assets, and there is no guarantee of being able to sell the shares. A sale could potentially occur through a new investor purchasing the shares or through NaturaTua or a third party buying out all shareholders.
Can I invest in NaturaTua or in a property?
NaturaTua is an operational project-driven company owned by the founders. It is likely that NaturaTua will carry out a new property purchase in the autumn of 2024. A condition for a new acquisition of a property is that the trading of BDU from the existing property in Ustorp has commenced. Questions regarding investments in NaturaTua AB and/or in new property projects are answered by Peter Neubauer, (Chairman of the Board) at info(at)naturatua.com.
Can I visit the land owned by NaturaTua?
There is an opportunity for interested and existing buyers of BDUs to conduct site visits to the relevant properties with representatives from NaturaTua and IFNK. How is conservation practiced in practice? How can one determine if nature is developing in the right or wrong direction? If a customer wishes to visit the area independently, we can provide maps and background information.
Can NaturaTua sell land?
Yes. Sales can occur if there is insufficient potential in terms of Biodiversity Unit (BDU) production. This might include buildings or agricultural land best suited for farming, or where alternative use other than farming does not receive approval from the county administrative board. It may also involve the sale of land with high natural values. This could be land in which NaturaTua has invested – with good results – and where there is a buyer who wants the same thing as NaturaTua. A careful assessment is made of whether the buyer represents a safe haven for the natural values or not. If the land is bound by usufruct agreements and BDU contracts, management continues as before.
Doesn't the sale of land risk compromising investments in biodiversity?
Land with increasingly higher natural values is likely to also entail increased economic value, to a greater extent. Given that agreements with buyers of BDU should always be guaranteed during the term, NaturaTua will also want to sell properties. If a property (or part of a property) is to be resold and significant values for biodiversity have been identified, demands will be placed on the buyer to protect the value and integrity of the sold BDUs. NaturaTua does not want the investments made in biodiversity – with or without buyers of BDUs – to degrade. On the contrary, we want these values to be further strengthened. Who then might be suitable buyers? Currently, the state and municipalities, which want to establish nature reserves (among other protective forms), can constitute suitable buyers. It can also involve nature conservation foundations. However, as the market for biodiversity develops and becomes established, more categories of suitable customers are likely to emerge. In the medium term, we believe that the higher biodiversity is valued, the stronger the incentive for a buyer to maintain and develop the natural values.
Can you really trade in nature – it changes all the time and the future is uncertain?
Nature is dynamic, and this is increasingly the case in the context of climate change and other large-scale negative changes to ecosystems. Species-rich and healthy ecosystems have a better capacity for adaptation—resilience. We believe that trading in biodiversity can help stabilize increasingly threatened ecosystems. We document the existing natural values and monitor them. Inventories are conducted by reputable consultants who apply the SS 1990000:2023 Nature Value Inventory (NVI). The consultants hired are independent of both NaturaTua and the land manager. Management is based on the results of conservation biology research as well as experiences from practical conservation work. New knowledge is continuously acquired. Land management is based on what we believe is best for preserving existing values and what actions are deemed to improve conditions for biodiversity. Even though we can, with varying degrees of certainty, forecast results given a certain amount of measures over time, we have chosen not to explicitly include future results in the product—BDU—that we provide.
You advertise nature conservation, but isn't it just agriculture and forestry with some conservation adjustments?
NaturaTua aims to achieve the best possible conditions for biodiversity through acquisition and delegated land management. We believe that the value of the land can increase due to increased biodiversity, which is the core of our business idea. Agriculture or forestry in the sense of producing bio-raw materials for sale is not the purpose or goal. The nature conservation management applied involves a) protecting existing natural values through free development and/or active stewardship, and b) restoring habitats and populations that have been degraded, reduced, or lost.
When nature conservation management is carried out, certain methods may resemble those used in traditional agriculture and forestry, but the purpose and goals are different because biodiversity is the ultimate aim. However, this nature conservation management sometimes produces by-products such as timber, logging residues, hay, and meat from natural grazing. Whenever possible, natural grazing is managed by a tenant.
Common actions in habitat restoration include the complete or partial removal of planted monocultural forests, often spruce, in favor of multi-aged forests with many tree species. This involves logging. Another common action is the restoration of meadows and pastures through clearing and cutting. A significant part of biodiversity benefits from unfertilized natural grazing and the maintenance of meadows.
Ustorp, Eksjö municipality, 57 hectares
“Ustorp is the first area that NaturaTua has tasked our foundation with managing. Today, it primarily consists of overgrown cultural landscape with contours from the 18th century. The area is very diverse with various biotopes and has great potential to enhance biodiversity.”
Sindre Magnusson,
Chairman of Framtidens Natur & Kulturarv
Contact
Are you or your company interested in purchasing Biodiversity Units and making a tangible difference for biodiversity today? Or are you perhaps curious about being part of future land acquisitions? Whatever your query, contact us at info(at)naturatua.com or use our contact form. We will get back to you as soon as possible. Through the form, you can also subscribe to our newsletter.