Nature is vital for successfully functioning business and the economy, but the UK is one of the most nature-depleted countries in the world. Restoring the UK’s natural wealth requires at least £44 billion over the next decade, needing both public and private finance. Currently, private investment is minimal, with only £95 million per year.

UK nature finance policy has focused on creating market structures like standards but lacks measures to drive business investment. Without policy to boost demand, these markets may fail, leaving farmers and land managers without necessary funding.

Some businesses invest in nature voluntarily, but this isn’t enough. The UK government should explore options to increase private finance, such as creating compliance markets, levies on businesses, and changing company incentives.

In this briefing, we set out options to drive more private finance into nature and call on the government to set out a roadmap for how it will develop nature markets and scale up private finance.

In the accompanying discussion paper, we provide more detail to the outlined options, including pros and cons.

For more information, contact:
Heather Plumpton, head of research: hplumpton@green-alliance.org.uk