The Natural Flood Management Strategic Working Group, convened by the Green Finance Institute (GFI) and commissioned by the Department for Environment, Food and Rural Affairs, has published its final recommendations for the financing of natural flood management (NFM) projects in the UK.
The report addresses the barriers to financing NFM, which if removed could unlock private sector capital for crucial projects to boost the UK’s resilience to flood risk. GFI has also set out practical recommendations and a standardised approach to enable the flow of capital into NFM projects, including the establishment of an asset register alongside open-access mapping and modelling.
NFM is described as “a complementary approach to traditional flood risk infrastructure” and has been highlighted as key to reducing flood risk by the UK government, in addition to helping meet environmental goals.
Helen Avery, director of nature programmes at the GFI, said: “Flooding is the number one natural hazard in the UK, costing the country billions each year. Natural Flood Management has huge potential to boost the UK’s resilience to flooding but requires greater participation from the private sector as buyers of outcomes. The recommendations in this report serve to provide the confidence the private sector requires, and a standardised approach to developing NFM projects to attract buyers more easily.”
‘A milestone in understanding the barriers and opportunities’
The strategy will require additional funding if it is to be delivered at the scale needed to address the increased risk of flooding due to climate change, including from the private sector. However, interest in paying for the proportional benefits that NFM generates for the private sector is currently low.
The Working Group identified several barriers that need to be unlocked to increase demand and has put forward a set of solutions.
A free and open-access mapping application, for example, could highlight NFM opportunities across England for reducing flood risk, and for delivering wider social and environmental co-benefits. Meanwhile, developing a natural capital assessment tool framework could help guide the valuation of NFM co-benefits in scheme applications.
Other solutions include the creation of a database to record all NFM asset information, including location and maintenance schedules, for all projects and schemes within a geography, and the development of government-backed NFM standards to ensure the high integrity of projects.
NFM can also attract private sector capital, relieving some of the burden on the public purse. One such example is the Wyre River Natural Flood Management project, in which a water company, United Utilities, was part of a buyer consortium.
Keith Ashcroft, chair of the NFM Strategic Working Group and chair of the Lake District Foundation, added: “Barely a month goes by without reference to unprecedented weather as our climate changes. The highest risk the UK faces is flooding which causes life-changing impacts on communities and businesses. Working with nature to slow the flow through natural flood management is key to reducing devastating impacts.
“This report is an important milestone in understanding the barriers and opportunities in mainstreaming investment in natural flood risk management to reduce the devastating impacts of flooding on communities and businesses making us all more resilient to our changing climate.”
