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Misty morning shot of Stour Valley
Financing nature recovery through green finance

The UK is one of the most nature depleted countries in the world and since 1970 on average we have lost 70% of all our mammals, birds, fish, reptiles and amphibians. Nature rich environments are vital for humans to thrive. From insects pollinating the crops we grow to feed ourselves, to plants and trees protecting the land and preventing flash flooding and pollution. As we experience ever increasing extreme weather patterns our depleted landscapes are making us more vulnerable to the effects of climate change. Action needs to happen urgently if we are to protect ourselves and the wildlife we love.

It is essential that UK farms continue to grow our food, however marginal land which tends to produce poorer yields may be better suited to habitat creation or restoration, thus providing space for nature. Not only could this be beneficial to building resilient landscapes in the wake of climate change but also benefit farmers financially and offer long term sustainability for food production.

There are a number of ways in which farmers can fund environmental interventions. These include government incentives through the Environmental Land management Schemes , grants from the private sector including Wessex Water’s River Stour phosphorus reduction scheme and the emerging green markets like Biodiversity Net Gain. (BNG).

BNG is a statuary obligation which came into force in 2024 requiring developments to mitigate for the loss of biodiversity by delivering an additional 10% biodiversity on top of that which was lost due to development. Much of this will be delivered on site, however where this is not feasible, BNG will need to be delivered off site.

BNG could be an opportunity for farmers who wish to implement environmental interventions and sell them as credits to those looking to offset against development. As this is still an emerging market there remains many uncertainties, and for farmers routes to market are unclear.

In June 2024 the Stour Valley Partnership was awarded funding through Defra’s Natural Environment Investment Readiness Fund to explore this in more detail. Working in partnership with experts Finance Earth, and with five farms along the Stour Valley, this project investigates:

– Existing ecological baseline and environment enhancements that could be implemented on pilot sites;

– Number and value of credits generated from proposed environmental enhancements (based on the statutory BNG metric calculations);

– Business case for delivering BNG against existing business as usual and alternative environmental incentive schemes

– Legal and governance structures required and existing mechanisms through which farmers may access these markets.

The result of this project will complete in August 2025 and the findings disseminated in September 2025.  If you would like to find out more, please get in touch.

Misty morning photo of the Stour Valley