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Natural Capital – Ecosystem Restoration Code

Posted: Tuesday, 10 November 2026

Posted in Sustainable Systems, Ecosystem Functions [SS.EF]

In this episode, we’re joined by Ross Johnston, Head of Natural Capital Policy and Valuation at the Scottish Government, to explore the development of the Ecosystem Restoration Code (ERC).

At its heart is the ERC Competent Model, a template for private investment in Scottish nature restoration, that is being tested and refined with the aim of becoming a fully functioning market mechanism for nature restoration and biodiversity projects.

Ross explains what the ERC is designed to achieve, the gaps it aims to fill, and how it could open up funding to a wider range of farms and landowners. We look at how it differs from existing codes and schemes, and what it might look like in practice. We discuss its development, lessons from stakeholder engagement, and the work still underway to test and shape it for the future.

Key Timestamps:

Intro to ERC and topic: 1:00 5:24

ERC purpose and development 5:25 – 13:29

Units, benefits and practical examples 13:30 – 18:04

Future demand, development and takeaways 18:04 – 27:27

Resources:

Ecosystem Restoration Code (ERC): A Competent Model for private investment in nature restoration in Scotland:

https://www.gov.scot/publications/ecosystem-restoration-code-erc-competent-model-private-investment-nature-restoration-scotland/

Ecosystem Restoration Code: engagement paper:

https://www.gov.scot/publications/ecosystem-restoration-code-engagement-paper/

Principles for Responsible Investment in Natural Capital: https://www.gov.scot/publications/interim-principles-for-responsible-investment-in-natural-capital/

FAS Understanding Natural Capital Markets: https://www.fas.scot/article/understanding-natural-capital-markets/