A pilot project between Commonwealth Bank and the Reserve Bank will create a real-life model for tradeable biodiversity credits created using a digital version of the Australian dollar, allowing companies and investors to invest in nature repair as a new asset class.

The bank says the project could help the federal government implement its Nature Repair Market bill, introduced on March 29, which seeks to create a voluntary market to reward landholders for restoring and protecting nature. This will come via biodiversity certificates connected to preservation and restoration projects that will create a pricing mechanism to realise their value.