Green Finance Boost for Nature in UK - Defra
New Green Finance Strategy and Nature Markets Framework to develop growth of green finance.
Plans to accelerate investment in nature have been set out by the Government today (Thursday 30 March) as part of its drive to net zero by 2050.
The Green Finance Strategy published today (30/3/23) will set out how the government will encourage green finance for nature-based solutions such as tree planting and peatland restoration and support farmers to access new private sector revenue streams whilst protecting our natural environment.
The government has set a target to raise at least £500 million in private finance to support nature’s recovery every year by 2027 in England, rising to more than £1 billion per year by 2030. This will support greater biodiversity and contribute to achieving our Environment Targets.
Environment Secretary, Thérèse Coffey MP said:" We need a healthy and thriving natural environment to meet our Net Zero goals and build our resilience to climate change. Our announcement today sends a signal that the opportunities from investing in our farmland, forestry, peatlands and marine areas are great and offer long term rewards for people and nature."
Measures set out to support green growth today include:
- An agreement that by 2024 farmers will be supported to better measure their emission sources through carbon audits and a harmonised approach to measuring carbon emissions.
- These changes will support farmers and land managers so they can earn income from Government led environmental land management schemes as well as attract finance from the private sector for sequestering carbon, improving water quality, and greater biodiversity alongside food production.
- Publishing a Nature Markets Framework, which sets out the government’s approach to supporting and accelerating growth of these markets and will enable revenue streams from different markets to be combined to support projects with multiple objectives for example increasing biodiversity and improving water quality. To date uncertainty about market development, how public funds interact with private markets, and tax impacts have limited long-term investment – the new Framework will help overcome this.
- Providing four pioneering local and combined authority areas (Cornwall; Northumberland, Cumberland, and Westmoreland & Furness; West Midlands Combined Authority; and York and North Yorkshire) with funding of up to £1 million each as part of the Local Investment in Natural Capital (LINC) programme. This two-year programme delivered by the Environment Agency and the four local authorities to test ‘what works’ in attracting investment into local priorities for nature.
- Working with the British Standards Institution (BSI) to develop a range of nature investment standards. Building on the experiences of the UK Woodland Carbon Code and UK Peatland Code, this will increase the range of trusted standards that market participants, including farmers and landowners, can use to access the nature markets.
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Posted On: 31/03/2023