Richmond, Va. –  The Virginia Department of Environmental Quality (DEQ) is partnering with Water Ledger to release the first-of-its-kind digital compensatory mitigation and nutrient credit marketplace. The Stream, Wetland, and Nutrient (SWaN) credit trading platform increases transparency, making it easier for permittees to purchase credits and for bankers to sell them. SWaN was developed and will be operated by Water Ledger, which received funding from DEQ through a competitive process. 

Wetlands protect water quality by serving as natural filters, capturing pollutants and reducing flooding. Under Virginia’s “no net loss” policy for wetlands and streams, all new construction that removes a wetland or stream in the Commonwealth must replace it within the same watershed. This is often done through mitigation banks, which create new wetlands and restore streams, generating credits. DEQ’s existing nutrient credit trading program, which offers regional solutions for storm water quality requirements, will also be available on the platform.  Purchasing credits from existing banks through SWaN provides immediate, established credits. Once banks are completed, they are placed into perpetual conservation and are unable to be developed in the future. This allows for a long-lasting environmental benefit for all who live in the watershed. 

“When credits aren’t readily available or information is not up-to-date, projects are delayed and environmental outcomes suffer,” says DEQ Director Mike Rolband. “SWaN modernizes Virginia’s mitigation and nutrient credit marketplace by bringing transparency, consistency, and efficiency to a system that has long needed it, ultimately improving environmental outcomes and predictability for permittees.” 

SWaN improves upon the current U.S. Army Corps of Engineers tracking system, which lists wetland, stream, and nutrient credit banks, but does not report pricing, serial codes for individual credits, or transactions, and may report delayed information about credit availability. SWaN provides real-time visibility into credit availability and pricing, and allows transactions to occur directly within the platform. This clarity helps reduce uncertainty in the mitigation and nutrient markets, supports more timely offset of environmental impacts, and encourages the use of already established banks rather than delayed alternatives. 

The impact of a smoothly functioning marketplace has drastic benefits, such as: 

• More timely and ecologically successful offset of environmental impacts 

• Less fluctuation in credit prices 

• More public transparency in how credits are being provided 

By offering a digital marketplace where credit offers can be browsed, compared, and purchased, SWaN will change the landscape of mitigation and nutrient banking to favor transparent transactions and demystify the common disconnect between buyers and sellers, while ensuring the longevity and future protection of Virginia’s wetlands and streams. When environmental business becomes easier to conduct, the public reaps the benefits of a well-managed and cared-for ecosystem.  

Check out the new SWaN platform here.