Restored UK Nature Impact Fund Bolstered with £30 Million Investment (Government Supported)
The UK Nature Impact Fund has undergone a significant transformation, with a renewed focus, new management, and substantial government investment. The relaunch marks a commitment to enhancing biodiversity and environmental recovery in England.
The fund, now managed solely by Finance Earth, has set its sights exclusively on nature recovery projects in England. Its primary focus will be on woodland creation, peatland restoration, and Biodiversity Net Gain (BNG) projects. This strategic shift aims to maximize positive environmental and social impacts while delivering financial returns.
The UK government has made a cornerstone investment of £30 million into the fund, which is part of the broader UK Nature platform. The fund aims to raise a total of £120 million, primarily leveraging revenues from the sale of carbon credits and biodiversity units to deliver returns.
Each carbon credit represents 1 tonne of CO2e emissions either reduced by restoring peatlands or sequestered by growing trees. Similarly, each biodiversity unit sold represents an improvement in biodiversity achieved through the restoration or creation of a habitat.
The Secretary of State for the Department for Environment, Food & Rural Affairs (Defra), Steve Reed MP, and Minister for Nature Mary Creagh announced the fund relaunch. They highlighted that this approach is key to unlocking more nature-based solution (NbS) investments in England and the rest of the UK.
To scale the platform, the UK Nature Accelerator, a technical assistance program, is helping local projects become investment ready. The learnings generated through the Accelerator will help build project developer capacity and create replicable blueprints for nature restoration projects.
The relaunched UK Nature Impact Fund does not appear to be directly related to the European states calling for MDBs to scale up investment vehicles, the SDG Outcomes Fund closing at $100m with EU backing, or the Klima fund leading €23m round for Dexter Energy.
With a pipeline of future regional funds expected to follow the fund's close, anticipated in late 2025, the UK Nature Impact Fund is set to play a crucial role in the UK's efforts towards environmental recovery. Finance Earth's £2m investment from its own balance sheet further underscores its commitment to this cause. The relaunch is a testament to the UK's dedication to aligning financial returns with environmental impact.
- The UK Nature Impact Fund, now under the management of Finance Earth, is exclusively targeting nature recovery projects in England, with a primary focus on woodland creation, peatland restoration, and Biodiversity Net Gain (BNG) projects.
- The relaunched fund aims to maximize positive environmental and social impacts while delivering financial returns, with a total target of £120 million to be raised, primarily through the sale of carbon credits and biodiversity units.
- Each carbon credit represents 1 tonne of CO2e emissions either reduced by restoring peatlands or sequestered by growing trees, and each biodiversity unit sold represents an improvement in biodiversity achieved through the restoration or creation of a habitat.
- The UK government's cornerstone investment of £30 million, part of the broader UK Nature platform, signifies a commitment to enhancing biodiversity and environmental recovery in England.
- The UK Nature Accelerator, a technical assistance program, is helping local projects become investment-ready, aiming to build project developer capacity and create replicable blueprints for nature restoration projects, thereby scaling the platform.
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