50 nature projects get funds to develop investment potential

Fifty nature projects will receive up to £100,000 in grant funding so they can be developed to attract private investment.

The results of the second round of the Natural Environment Investment Readiness Fund have been announced by Defra and the Environment Agency.

The scheme is designed to help develop projects to the point at which they can start generating revenues from the sale of carbon storage, improvements in biodiversity or other ecosystem services.

See also: Natural environment grant scheme open to farmers

Successful applicants for the second round include the Knepp Estate in West Sussex, which is well-known for its rewilding strategy.

It has secured funding to enable the development of a new approach to carbon storage accounting.

This will be used to create a business case for a new 617ha rewilding project in Lincolnshire.

New carbon-capture data will also be used to make existing Carbon Codes more attractive to landowners.

Meanwhile, the North East Cotswold Farmer Cluster will bring together 100 farmers to deliver biodiversity, carbon, water quality and flood risk management improvements.

The aim is to attract retail finance to natural capital projects.

The National Trust has also been awarded £100,000 to write a business case to transition the Trust’s tenant farmers towards more nature-friendly farming by generating revenue from carbon and biodiversity net gain payments.

Project pipeline

Lord Benyon, minister for green finance, said the government was now funding almost 80 projects across England.

This was creating a pipeline of projects that could be scaled and replicated elsewhere to attract more money to protect and restore the environment.

Among the 29 schemes that were successful during the first round of funding are projects creating new woodland, delivering natural flood risk management, and improving water quality.

For example, the North York Moors National Park has calculated the natural capital value of the Esk Valley and individual holdings of the Esk Valley Farmers Group.

It is investigating potential buyers in the region to refine what transactions may be possible by summer 2022.

Farmers will be delivering flood, carbon, and water quality benefits, which buyers may want to pay for.

The National Trust is looking at potential revenues from natural flood risk management interventions in the Calder and Colne, including through the sale of carbon and biodiversity units.

Tony Juniper, chairman of Natural England, said: “The development of these kinds of projects will be a vital part of how we deliver the ambitious Nature Recovery Network that is at the heart of Natural England and the government’s plans, and I am glad to see the Natural Environment Investment Readiness Fund showing how it can be done.”