Without more investment in nature restoration, many businesses are at risk of missing legally binding targets, such as the requirement under the Environment Act 2021 to halt species decline by 2030, Green Alliance experts have warned.
Figures reveal the UK is one of the most nature depleted countries in the world. The Green Finance Institute estimated protecting and restoring the UK’s natural wealth will require at least £44bn ($57bn) of investment over the next 10 years. However, private investment in nature is estimated to be only £95m ($123m) a year, mostly in the water sector.
However, new biodiversity net gain regulations are expected to boost this by £200m ($260m) a year. Green Alliance said the food sector is the logical choice for expansion of these markets as nearly two thirds of land in England is farmed.
The charity also proposed ways to drive private investment into nature by introducing incentives for companies, such as expanding the definition of directors’ fiduciary duties to include nature protection.
The charity added public finance institutions have a crucial role to play. The UK’s National Wealth Fund (NWF) should be given a statutory objective to help meet the UK’s biodiversity targets, said Green Alliance experts. The UK government is expected to bring forward legislation and guidance to set out the mandate of the NWF, which is intended to develop green industries and support the UK’s industrial strategy.
Heather Plumpton, head of research at Green Alliance, said: “Nature underpins the economy, but we are currently damaging it to such an extent that the sustainability of many businesses is under threat, especially in sectors like food.
“Everyone loses out when precious natural wealth disappears, but private investment isn’t playing its part to maintain it. A voluntary approach hasn’t been enough, so we want to see more obligations and incentives to encourage companies to invest in nature.”
