Environmental Markets

An environmental market is a way to drive river and stream restoration at a faster pace and larger scale than is possible with philanthropic and grant dollars alone. By putting a dollar value on the benefits nature provides us – called ecosystem services – like trees removing carbon from the atmosphere or streamside vegetation cooling and filtering water, we are now able to create economic incentives to engage cities,  businesses, landowners and conservationists in efforts that can produce results on a faster timeline. It is a way to benefit both the economy and the environment while addressing our nation’s mounting water quality issues.

So what are we talking about when we say “environmental markets?” In simplest terms, markets are systems for trading goods and services. The term “market” refers to the institutions, procedures and infrastructure required for efficient, competitive trading. The beef market, for example, is not a physical thing; it refers to the entire system established for ranchers to sell a commodity – in this case, beef – to buyers. An environmental market is simply a system to trade a different kind of commodity – ecosystem services – for negative environmental impact in a standardized, organized way.