Background
Nature recovery is a key part of government’s aim to address biodiversity loss. In addition to public spending, the government has set an ambition for private investment in nature recovery to reach £500 million per year by 2027, increasing to £1 billion per year by 2030. Levels of private investment have increased but remain below the scale government is aiming for.
The Department for Environment Food and Rural Affairs (Defra) uses a range of mechanisms to leverage and encourage private investment in nature. These include regulatory approaches, such as Biodiversity Net Gain and the forthcoming Nature Restoration Fund, as well as voluntary schemes such as the Woodland Carbon Code and Peatland Code.
Scope
Our work will provide an overview of the current landscape of schemes designed to encourage private investment in nature. It will:
- outline the different approaches Defra uses to encourage, incentivise or require private investment in nature
- explain the roles of the main organisations involved
- describe progress so far towards government’s aims
- highlight some of the key risks, challenges and opportunities when leveraging private investment in nature
This work is intended as an overview of the system and will not seek to conclude on the effectiveness or value for money of the schemes.
NAO team
Director: Rich Sullivan-Jones
Audit Manager: Hedley Ayres