Frequently asked questions

We aim to update these questions and answers regularly as we develop the project further.  Recently updated questions are marked with an asterisk (*).


If you have a question that isn't answered here, then please contact us directly with your query.

Introducing the Somerset Catchment Market

  • What is a Catchment Market?

    A Catchment Market is an on-line marketplace where landholders in a particular catchment can offer to supply Nature based Projects on their land and third parties can bid for the rights to the Environmental Services delivered by these projects.

  • What is a Nature-based Project?

    Nature-based Projects are habitat creation, restoration or improvement projects that deliver Environmental Services.  Examples of Nature-based Projects include creating wetlands, planting new woodlands, and reversion of arable farmland to grassland.

  • What are Environmental Services?

    Environmental Services include biodiversity and water quality improvements, natural flood management, carbon sequestration and other outcomes delivered by Nature-based Projects.


    Multiple Environmental Services can be delivered from a single Nature-based Project, for example a wetland may deliver biodiversity improvements as well as reducing Nitrogen and Phosphorus flows into rivers and streams.

  • What are Environmental Credits?

    Environmental Credits are a form of intangible property in the form of tradeable certificates that represent the Environmental Services delivered by a Nature-based Project.  

  • How are the Environmental Services measured and verified?

    Somerset Catchment Market Standards are being developed in collaboration with Natural England and the Environment Agency to quantify the Environmental Services delivered by different types of Nature-based Projects.  Environmental Credits will be issued by the Market Operator once it has verified that a Project has been implemented to agreed Project Specifications.

  • Who can participate in the Somerset Catchment Market?

    Project Suppliers


    Landholders who are willing to deliver Nature-based Projects on their land are referred to as Project Suppliers.


    Project Suppliers within Eligible Areas of the Test & Itchen Catchment can participate in the market if they are willing to:

    • contract with the Market Operator to deliver a Nature-based Project to the required Project Specification (Nature-based Project Agreement);
    • enter into a legally binding agreement with the Local Planning Authority (Landholder Agreement) covering the future use and management of the Project Land; and
    • demonstrate that they have legal ownership of the Project Land or control of that land for the duration of the Landholder Agreement 

    Project Suppliers participate in the market by making a bid (the minimum payment that they want to receive to deliver the project).


    More information about the market process for landholders is available here.


    Credit Buyers


    Environmental Credits are typically bought by organisations that have regulatory obligations or voluntary commitments to reduce their environmental impacts. These organisations are referred to as Credit Buyers.


    Developers with nutrient neutrality obligations will be Credit Buyers in the Somerset Catchment Market.  Developers may also be Credit Buyers for the biodiversity gain delivered by the Nature-based Projects.



  • Who operates the market?

    The Market Operator (MO) is the organisation that establishes and operates the Somerset Catchment Market.


    The Market Operator:

    • Calls for Expressions of Interest in supplying projects and buying credits
    • Reviews Project proposals and estimates the Environmental Credits that will be delivered
    • Registers Projects that meet the required Project Specifications for sale in the Market
    • Accredits Projects for the Environmental Services that will be delivered.
    • Registers the Credit Requirements of Credit Buyers
    • Manages the market bidding and settlement processes
    • Enters into Environmental Credit Supply Agreements with Credit Buyers, and Nature-based Project Agreements with landholders

    EnTrade is the Market Operator for the Somerset Catchment Market.

  • How does the market work?

    An overview of the market is available here

I'm a landholder ....

  • What types of projects are eligible?

    The Somerset Catchment Market is looking for long-term (80+-year) projects, including:

    • interceptor woodlands
    • woodlands 
    • interceptor wetlands

    The Somerset Catchment Market is also looking for short-term projects, including:

    • arable reversion
    • cover crops

    More information about eligible project types is here


  • Where can projects be located?

    The Somerset Catchment Market is working with landholders to develop projects that can mitigate the nutrient impacts of developments on the Somerset Levels and Moors Special Protection Area (SPA).   More information about eligible project areas is available here

  • Will I get paid for all the Environmental Services that my project produces?

    The market will be open to buyers for all of the Environmental Services for which a Nature-based Project has been accredited.

  • If there isn’t a buyer for a particular Environmental Service during a Market Round, do I retain the rights to the Environmental Credits for these services? Can I sell these Environmental Credits at a later date?

    Yes, landowners can retain the rights to Environmental Services for which there are no buyers in a Market Round.


    Whether a landowner can sell these Environmental Credits at a later date will depend on the type of credits involved and any rules imposed on their sale by regulators.

  • How long are the nature-based project agreements?

    This will vary depending on the project type, ranging from 1 year for short-term cover crop projects, up to 80 years for woodlands and wetlands.  More information is available here

  • How does the market relate to other schemes, such as the new Environmental Land Management Schemes?

    The market provides a way for landholders to earn revenue from projects that deliver environmental improvements on their land.  The market approach helps to ensure that landholders benefit from the value of Environmental Services for which there are buyers.


    The rules for how the Environmental Land Management Scheme (ELM) will interact with environmental markets are still being determined by the Government.  Landholders need to be paid a fair price for the environmental services their land delivers. Government and its agencies can use the market to purchase environmental services needed to achieve environmental targets. 

  • How much will I be paid for delivering a nature-based project?

    The payment you will receive for a Nature-based Project will depend on the type, scale and location of the Project and the duration of the Landowner Agreement.   It will also depend on the offer you make to supply the Project, and whether the amount businesses are willing to pay for the environmental credits from the Project is sufficient to match your offer.   If your offer matches the bids made by Credit Buyers you will receive your offer price plus the bonus for your share of the surplus from the trade.

  • Can the land be sold? What happens to the section 106?

    The section 106 is attached to the land and will be transferred to the new owner who must take on the management, maintenance and compliance obligations.

  • What if there are changes to permits or legislation relating to sediment disposal in the future?

    This is not something we can predict but this can be factored into your costs as a contingency.

  • Can sediment be spread elsewhere rather than upstream of the wetland?

    No.  Sediment should be spread upstream of the wetland to prevent increasing nutrients elsewhere in the catchment.

  • Will short-term projects be settled via the same settlement mechanism?

    Yes.  Short-term projects such as arable reversion will be settled using the Lindsay Mechanism

  • Can we have the slides from the recent presentations?

    These have been provided to landholders if you did not receive them or were unable to attend webinars please contact the team.

  • Can arable reversion be cut/topped more than once?

    Yes

  • Can the arable reversion land be cut/topped earlier than July if cutting more than once?

    Yes can cut more than once an earlier cut and a later cut is acceptable. The later date and single cut is the minimum

  • Can cuttings be removed?

    Yes cuttings can and should be removed.

  • What insurance do I need?

    EnTrade cannot provide advice on insurance please check with your broker to ensure you have adequate cover. This is covered in the Nature Based Project Agreement:


    12.3 Insurance

    (a) Each Party shall maintain insurance cover at its own cost with a reputable insurance company to cover its potential liabilities arising under or in connection with this Agreement to such extent as would be reasonably expected to be taken out and maintained by an experienced, reasonable and prudent person in the context of the Agreement.

    Each Party shall provide a copy of each insurance policy and any relevant renewal receipts to the other Party upon reasonable request.


  • Who do I speak to at the NFU for advice on this opportunity?

    NFU Legal Panel

  • Will water Voles be a problem if they colonise my wetland?

    No they should not create issues with their burrows other larger mammals may cause issues with burrowing. If water voles do colonise you should follow the good practice guidance for management 

  • Can short-term projects be located in fields with Countryside Stewardship 6m or 12m Field Margins?

    Yes, provided you do not include the Stewardship margins in the area offered to market and the project will not cause you to breach your agreement.  Please check your Stewardship Agreement terms before submitting an offer

  • Can I submit a short-term project, for example Arable Reversion, as a five year or three year project?

    Yes. Providing you are happy for your project to settle in the market as a five or three year project, the Project can be registered twice with different periods. The Project will only settle once but it will settle according to the most efficient option that generates the most surplus.

  • Will there be a gap between suppliers making an offer and buyers submitting a bid?

    fter the Project Supplier has completed their Project Registration for a Market Round, EnTrade will review all of the projects and confirm to its satisfaction that the Projects are capable of constituting nutrient mitigation under the Habitats Regulations and/or Biodiversity Gain under the Environment Act. After this review the Catchment Opportunities Statement will be published before the Market Round opens and offers and bids are submitted. There will be at least of two weeks from this review to the Market opening for offers.

  • Can the seed mix for arable reversion be varied? Can they include more productive grasses?

    Yes - seed mixes should be agreed in writing with the Catchment Market Operator.  Perennial ryegrass may be included in the mix but the mix should be appropriate to the location, and be capable of providing at least 80% ground cover in the first year. Please review the specifications for the Project type you wish to deliver before registering your project.

  • If I have a short-term project (arable reversion or cover crops) and a long-term project in the same watershed will this alter the nutrient reduction generated by the wetland?

     No. The arable reversion or cover crops are a temporary change.  Due to the way in which the baseline load is calculated, over a cropping rotation this would make little difference to the wetland claim.

  • What do I do with the dredged material from maintenance of wetlands?

    The CL:AIRE  Code of Practice (CL:AIRE CoP) makes it much simpler to dispose of excavated material for re-use on-site. 


    It provides a cheaper alternative to Environmental Permits or exemptions, and maximises reuse and recycling. 


    There are some pieces of evidence that are required to use this solution, to manage dredged material on your land.

     

    CL:AIRE CoP covers the re-use of both contaminated and uncontaminated material on the same site they have been excavated from.

     

    A simple Materials Management Plan is required to apply CL:AIRE. This Plan shows where the material will come from and where it will be placed as well as any testing required to show contamination levels. This needs to be confirmed by a ‘qualified person’ who has to oversee the use of the Cl:aire Code of Practice. A register of these individuals is kept here. 


    To use CL:AIRE it requires that you have in place either Planning Permission or permitted development rights.


    The CLA:RE website provides an indication of current typical fees per Declaration,


    The alternative is to apply for a permit or waste exemption. For further information about Environmental Permits and waste exemptions please visit Register or renew waste exemptions

     

    It’s important that the nutrients removed by a wetland aren’t placed where they will simply make their way back into the watercourse. Material removed from the wetlands and retained on site should be located within the watershed for source wetland. Watershed boundary maps are available by contacting the Somerset Catchment Market team

  • Is the estimated accreditation range before or after the 20% credit reserve?

    Registered Suppliers have been provided with an estimated range of P-Credits that their Project will deliver.


    The accreditation range provided is after the 20% Credit Reserve.


    To meet the Habitat Regulation requirement of certainty, 20% of the P-Credits from successful Projects are held in a Credit Reserve. These P-Credits may be sold once a Project is:


    a) verified as delivered to the required Project Specification;

    b) delivering at least the level of phosphorus reduction for which it was accredited (as evidenced by Performance Monitoring); and

    c) the Interim Board approves the release of P-Credits from the Credit Reserve.


    Suppliers will receive their share of the proceeds of the sale of P-Credits released from the Credit Reserve (net of Market Fees and Costs) as a Market Bonus.

I'm a credit buyer ...

  • How will EnTrade ensure small developers can participate in the market, and aren’t crowded out by large developers?

    For Market Round 1 we are expecting that there will be significantly more demand for Credits than what will be available.  We have therefore set a Credit cap per registered Buyer of 5 P-Credits for the first Market Round.  By capping the number of Credits per Buyer, we are maximising the number of Buyers that can participate in Market Round 1.

  • I am representing clients that have a demand for Environmental Credits. Am I able to purchase Credits on their behalf?

    Agents can act on behalf of Environmental Credit Buyers.  Evidence will need to be provided that the Agent has the authority to make a binding bid in the Market Round on behalf of a specific Environmental Credit Buyer.


    The Environmental Credit Requirements Registration form includes a section where agents can upload this evidence.


    Click here to see the wording of this section of the form.

  • How do I know if the Nutrient Credit Calculations have been accepted?

    EnTrade will contact you directly using the email provided through the registration process to confirm that your calculations have been accepted.

  • What is the time period between the rights to Credits being assigned and Credits being issued and being able to be redeemed?

    When registering Environmental Credit Requirements Buyers are required to indicate when the development is expected to commence.


    Where a development is scheduled to commence before on-going P Credits can be issued, EnTrade will arrange for short-term P Credits (Bridging Credits) to be made available. 


    Once the Environmental Credit Supply Agreement is executed the process is as follows:

    1. Buyers make the Stage 1 payment and are assigned the rights to the Credits
    2. Buyers receive a Notice of Readiness to Issue Environmental Credits when the Projects that generate the Credits have been verified.
    3. Buyers make the Stage 2 payment and Credits (short-term or on-going) are issued to the Buyer.
    4. The Buyer can then request EnTrade to submit the Bridging Certificate or Allocation Certificate to the Council in order to meet the planning condition and commence development.

    Bridging Credits will be available once the short-term Projects that generate the Bridging Credits have been verified, which is expected to be 6 - 12 months after the Market Round.

  • My development project is outside the South Somerset District Council area. Can I still participate in the Somerset Catchment Market?

    Developments that would discharge to Water Recycling Centres (sewage works) in the catchments for the Rivers Parrett or Brue within the South Somerset District Council can bid for Environmental Credits in the Market.


    If a development does not discharge to this area, then the first Market Round will not meet your Credit Requirements.  We hope to open the Market up to a wider area in the future so please keep an eye on our website for updates.

  • What are the water companies doing to stop sewage discharge into rivers?

    More information about Wessex Water’s Storm Overflows Improvement Plan is available here

  • When you say we need to have a calculator which has been approved by the LPA, do you mean that we have used the Somerset Calculator or that the LPA/Natural England have approved the calculations?

    Both. 


    A phosphate budget calculator has been approved by the South Somerset District Council that has been approved for determining Credit Requirements.


    The calculator is available here


    Further background on the development of the calculator is available here


    Biodiversity Metric 3.1 is a biodiversity accounting tool that can be used for the purposes of calculating biodiversity net gain. 


    Before registering their Environmental Credit Requirements, Buyers will need to complete a nutrient neutrality and/or biodiversity metric calculation and submit it for confirmation by South Somerset District Council (who may seek advice from Natural England).

  • Is the first round of registration a first come first serve process in terms of registration?

    Registering early does not give a Buyer any advantage in the Market.


    However, the registration process has a strict closing date of 27th March so a Buyer must submit both the Market Participant Registration Form, and the Environmental Credit Requirements Registration Form along with all supporting evidence required by this date in order to participate in the first Market Round.

  • Realistically, how long will it take from now to achieve a signed S106 and thus planning approval?

    Timing of signing the S106 agreement is a matter for South Somerset District Council. 


    Schedule 1 of the S106 Agreement sets out the obligation on a developer to purchase Credits and submit an Allocation Certificate or Bridging Certificate in order to Commence Development.


    In other words, it is not a requirement for a developer to have purchased P -Credits prior to signing the S106 Agreement.

  • What is the timeframe from purchasing Credits through the market, and being able to begin building?

    Once the Environmental Credit Supply Agreement is executed the process is as follows:

    1. Buyers make the Stage 1 payment and are assigned the rights to the Credits
    2. Buyers receive a Notice of Readiness to Issue Environmental Credits when the Projects that generate the Credits have been verified.
    3. Buyers make the Stage 2 payment and Credits (short-term or on-going) are issued to the Buyer.
    4. The Buyer can then request EnTrade to submit the Bridging Certificate or Allocation Certificate to the Council to meet the planning condition and commence development.

    Bridging Credits will be available once short-term Projects have been verified, which is expected to be 6 - 12 months after the Market Round.


  • What happens if the scope of the development changes? For example, if you register to purchase an amount of Credits, but that amount then reduces, are you committed to buying the original amount stated?

    If the scope of the development changes after signing the Environmental Credit Supply Agreement, Buyers must still pay for the Agreed Quantity of P-Credits.


    If the development requires additional P-Credits, these can be purchased in a subsequent Market Round.


    If the development requires less P-Credits, Rule 5.4.4 of the Market Rules deals with what a developer may do with Unused Credits.


    Rule 5.4.4 of the Market Rules states that:


    A Credit Buyer who holds rights to Environmental Credits or owns Issued Credits but no longer has the specific obligation to secure mitigation or obtain offsets for which they were purchased must notify the Market Operator; and either 

    a) request the Environmental Credits be applied to another Credit Requirement for mitigation or offsets registered with the Market Operator; or 

    b) make the Environmental Credits which have already been issued to it available for sale in a future Market Round.

  • How do we calculate exactly how many Credits are required for a development?

    A phosphate budget calculator has been approved by the South Somerset District Council that has been approved for determining Credit Requirements.


    The calculator is available here


    Further background on the development of the calculator is available here


    1kg/year Total Phosphorus budget for a development equates to 1 P-Credit.


    Biodiversity Metric 3.1 is a biodiversity accounting tool that can be used for the purposes of calculating biodiversity net gain. 


    Before registering their Environmental Credit Requirements, Buyers will need to complete a nutrient neutrality and/or biodiversity metric calculation and submit it for confirmation by South Somerset District Council (who may seek advice from Natural England).

  • Is this an auction scheme?

    The Somerset Catchment Market is not an auction.  


    The Market is two sided and involves offers by landholders and bids from developers which are matched through the Settlement Mechanism developed by the University of Exeter.  


    The Market Settlement process is explained in this short animation.

  • If a Buyer is successful in the Market, when do they need to pay for the Credits?

    Buyers must make two payments.


    The first payment (comprising half of the total costs) will be paid when the Environmental Credit Supply Agreement is signed. 


    The second payment will be made when the Project(s) matched to the Buyer bid through the Market Settlement Process have been verified and the Buyer has received a Notice of Readiness to Issue Credits. 


    The Second Payment must be made before P-Credits can be issued and an Allocation Certificate can be submitted to the Council.


  • Can you please clarify ‘upfront’ and ‘delivery’ payments? At what stages are payments actually required?

    The terms ‘upfront’ and ‘delivery’ payments refer to the payments that EnTrade must make to the Project Suppliers under the Nature-based Project Agreement.


    Buyers are required to make two Buyer Payments to EnTrade under the Environmental Credit Supply Agreement.


    The first Buyer Payment (comprising half of the total costs) will be paid when the Environmental Credit Supply Agreement is signed. 


    The second Buyer Payment will be made when the Project(s) matched to the Buyer bid through the Market Settlement Process have been verified and the Buyer has received a Notice of Readiness to Issue Credits.


  • If the projects are costed and the number of Credits known why is it a bidding process?

    The Somerset Catchment Market is a two-sided market.  In the same way that developers need to determine how much they are willing to pay for P-Credits, landholders also need to determine how much they need to be paid to supply the Project(s).  


    The costs of developing and delivering a Project have not been costed by EnTrade as these vary between Suppliers.


    EnTrade has costed the annual maintenance and land-use fees which are fixed up front.  Project Suppliers individually determine the Offer to supply the Project for a payment that they consider reasonably reflects the cost of project delivery.


    The Market Settlement mechanism has been designed in a way that ensures that if there is a surplus in the market, this is shared between Buyers and sellers.


  • We are ready to commence building as soon as possible, but have been held up as a result of nutrient neutrality requirements. How should we answer the question relating to building commencement date in the Environmental Credits Requirement Registration form?

    If you have fulfilled all planning conditions other than the purchase of P-Credits you can indicate that the date of commencement is immediate.


    To ensure that early Credit Requirements can be met, Bridging Credits from short-term Projects will be secured by EnTrade.  We anticipate that the first Credits from these projects will be available in 6-12 months, 


  • I already uploaded the Phosphate Calculator when I submitted an EOI. Is there anything else I need to do to participate in the Market?

    Completing the EOI is not sufficient to participate in the Market.


    In order to participate in the first Market Round, Buyers must submit both the Market Participant Registration Form, and the Environmental Credit Requirements Registration Form by the 27th March 2023.


    Buyers that have registered their environmental Credits must enter a bid in the upcoming Market Round in April 2023.


  • How do we determine how much to bid?

    We cannot provide guidance on how to determine how much to bid for Environmental Credits.  


    Before the Market Round, we will provide a Catchment Opportunities Statement.  This will:

    • Inform Environmental Credit Buyers of the types and quantity of Environmental Credits expected to be available in a Market Round
    • Inform Project Suppliers about the type, quantity and locations of Nature-based Projects for which there are expected to be Project Buyers in a Market Round
    • Set out the types and locations of Nature-based Projects that are agreed by the relevant Competent Authority(ies) to meet particular regulatory requirements. 

    We expect Buyers to review the Catchment Opportunities Statement as part of their preparation of a bid for the first Market Round. 


  • When do I put my bid in?

    Bids will be required in April 2023.  Before bidding opens, a Catchment Market Opportunities Statement will be released. All Registered Buyers will be contacted direct via email, in advance, to confirm the date for bids to be submitted.

  • What is the best way to be successful in the market? Is it to bid the highest amount?

    The market is a competitive process.  Therefore, the highest bids have a greater chance of being successful.


    The Market Settlement mechanism has been designed to:

    • Find deals that give the most surplus
    • Ensure that any surplus in the Market is shared fairly between Buyers and sellers.  

    This means that higher bids are also more likely to receive a discount on their bid if there is a surplus in the market.


    The Market Settlement process is explained in this short animation.


  • If planning is refused, are the Credits refundable?

    Section 5.4.4 of the Market Rules states that:


    A Credit Buyer who holds rights to Environmental Credits or owns Issued Credits but no longer has the specific obligation to secure mitigation or obtain offsets for which they were purchased must notify the Market Operator; and either 

    a) request the Environmental Credits be applied to another Credit Requirement for mitigation or offsets registered with the Market Operator; or 

    b) make the Environmental Credits which have already been issued to it available for sale in a future Market Round.


  • What happens if you buy Credits, get planning permission and then sell the site on?

    Section 5.4.5 of the Market Rules states that:


    A Credit Buyer who holds Environmental Credits to meet a specific obligation to secure mitigation or obtain offsets, may request transfer of Environmental Credits to another person if: 

    a) the Credit Buyer sells or transfers the development or activity to which the mitigation or offset obligation applies, to another person; and 

    b) the new owner of the development or activity agrees to register as a Market Participant and comply with the Market Rules.


  • Can you sell the Credits back to EnTrade as you can’t resell them?

    Section 5.4.4 of the Market Rules states that:


    A Credit Buyer who holds rights to Environmental Credits or owns Issued Credits but no longer has the specific obligation to secure mitigation or obtain offsets for which they were purchased must notify the Market Operator; and either 

    a) request the Environmental Credits be applied to another Credit Requirement for mitigation or offsets registered with the Market Operator; or 

    b) make the Environmental Credits which have already been issued to it available for sale in a future Market Round.


  • What are Biodiversity Units, I thought I just needed Credits for phosphorus mitigation?

    With the expected introduction in 2023 of a Biodiversity Net Gain obligation for new development, there is a growing demand for the rights to habitat enhancement from projects that can generate Biodiversity Units.


    In addition, many organisations are exploring ways to voluntarily contribute to positive environmental outcomes, including carbon abatement, increasing habitat for biodiversity, and natural flood management.


    Over time, the intention is to expand the types of Environmental Credits that can be purchased through the Somerset Catchment Market to meet the regulatory requirements and voluntary commitments of Credit Buyers.


  • Will the Levelling Up and Regeneration Bill have an impact on the amount of mitigation required by new developments?

    The Levelling Up and Regeneration Bill is expected to require water companies to upgrade wastewater treatment works to the highest technically achievable limits by 2030 in nutrient neutrality areas.


    This is expected to reduce the level of mitigation required by individual developers when the legislation comes into force.


  • I aim to submit a planning application within the next few months and I have been using the Phosphate Budget Calculator to determine the mitigation Credits required. Is it possible to purchase Credits through EnTrade either pre or post planning?

    For the first Market Round, you need to have submitted a planning application in order to participate.


    We intend to run a second Market Round before the end of 2023.  Please submit an Expression of Interest, so that EnTrade can keep you updated about future market rounds.


  • Is there a standard template for the S106 agreement?

    A standard template for the S106 has been developed by SSDC.  A copy will be sent to buyers who have expressed an interest in buying Credits from the Somerset Catchment Market. If you haven’t received a copy of this, then please contact the Somerset Catchment Market team 


  • Can EnTrade provide information about bidding amounts?

    EnTrade cannot provide information about the amount a Buyer may choose to bid.


    The Somerset Catchment Market is a two-sided market that matches Buyers’ willingness to pay for P-Credits, with the Offer Supplier make to deliver accredited and verified phosphorus mitigation Projects.  


    The things that a Buyer should take into account in deciding the amount to bid include: 

    • the fixed payments for the on-going land use and maintenance for the Projects
    • EnTrade’s Fees
    • Other Market Costs including Market Governance, Compliance and Performance Monitoring 

    Information about these costs is provided in the Catchment Opportunities Statement.


    A successful Buyer will never pay more than their bid amount.


    A Buyer may pay less than their bid amount if there is a Market Surplus.


    Buyers will receive their share of any Market Surplus in the form of a discount on their bid amount.  


    Buyers whose Offers are too low to meet Supplier Payments, EnTrade Fees and Other Market Costs will be unsuccessful in the Market Round.


    Once the Market Round is complete each unsuccessful Market Participant will receive a report that shows how their bid or offer compared to Bids and Offers that were successful.   


  • Why can’t EnTrade tell buyers the price of a credit?

    EnTrade does not set P-Credit prices.


    The payments successful Buyers need to make for their P-Credits is determined by the Market Settlement Mechanism (the Lindsay Mechanism) developed by the University of Exeter.


    The Somerset Catchment Market is a two-sided market.  


    In this market, Credit Buyers need to determine how much they are willing to pay for P-Credits, Project Suppliers also need to determine how much they need to be paid to supply the Project(s).  


    The costs of developing and delivering a Project will vary between Suppliers.  Project Suppliers individually determine the Offer they make to supply the Project for a payment that they consider reflects the economic cost of delivering the Project on their land.

  • How many credits are available relative to buyer demand?

    Information about Project and P-Credit supply and demand can be found in the Catchment Opportunities Statement.


    We expect Buyers and Suppliers to review the Catchment Opportunities Statement as part of their preparation of Bids and Offers for the first Market Round. 


  • Are there alternative sources for P-credits?

    There is very high demand for P-credits in the region.  


    The range of phosphorus mitigation methods are set out in section 3 of the Somerset Nutrient Information Request Sheet (February 2021) available here

  • How do we know how many Fixed-term (current) and Ongoing (post-AMP 7) Phosphorus credits we require to get planning permission?

    Developers need to use the Phosphate Calculator to calculate the level of phosphates a proposed development will generate.

  • Where do I start to work out how much to bid for P-Credits?

    We can’t advise Credit Buyers on the amount they should bid for P-Credits.  


    We expect Buyers to review the Catchment Opportunities Statement as part of their preparation of a bid for the first Market Round. 


    The Catchment Opportunities Statement will:

    • Inform Environmental Credit Buyers of the types and quantity of Environmental Credits expected to be available in a Market Round
    • Inform Project Suppliers about the type, quantity and locations of Nature-based Projects for which there are expected to be Project Buyers in a Market Round
    • Set out the types and locations of Nature-based Projects that are agreed by the relevant Competent Authority(ies) to meet particular regulatory requirements. 

    Catchment Opportunities Statement for each Market Round will be available here

Share by: