The UK is one of the most nature-depleted countries in the world. This has consequences for growth as the economy depends on nature. However, private finance for nature restoration is insufficient due, largely, to the challenge of demonstrating financial returns. A state-backed investor, accepting lower returns and higher risks, could attract more private capital for nature restoration with proper market design and incentives.

The UK Infrastructure Bank (UKIB) will become the National Wealth Fund (NWF), presenting both risks and opportunities for investing in nature restoration. The NWF needs reforms to effectively increase finance for nature, and its remit to invest in nature-based solutions must be retained and strengthened during the transition.

In this briefing, we outline ways the government can enhance the NWF’s role in developing nature markets.

For more information, contact:
Sophia Greacen, senior policy adviser: sgreacen@green-alliance.org.uk