NATURE RECOVERY OPPORTUNITIES The role of the public and private sectors in nature recovery
- Jess Bradley
- Aug 13
- 5 min read
Updated: 6 days ago
 | Jess leads the Natural Capital division at Nicholsons, offering a bespoke, client-focused service that translates complex environmental markets into actionable, site-specific strategies. Drawing on a strong background in ecological consultancy and land management, Jess works closely with clients to assess their natural capital baseline and identify tailored opportunities across biodiversity, carbon, nutrient neutrality and wider ecosystem services. Under her leadership, the team provides end-to-end support from initial scoping through to implementation and long-term management. With access to in-house ecologists, GIS specialists and contracting teams, Jess ensures each project is underpinned by robust data, expert insight, and a clear understanding of emerging market trends. Committed to delivering practical outcomes that balance environmental benefit with commercial viability, Jess helps landowners, businesses and investors navigate the evolving natural capital space with confidence. |
Jess gives a comprehensive update on nature recovery and carbon initiatives, backed by financial implications and useful bibliography. However, “The stability and direction of policy and funding from the public sector is crucial for instilling confidence in the private sector that these markets are viable for investment.” |
The United Kingdom has committed to reaching net zero by 2050 (The Climate Change Act 2008 (2050 Target Amendment) Order 2019). According to the Climate Change Committee (CCC) “the country is not on track to hit this target” (CCC, 2024). Recent developments within natural capital markets are creating new income streams for farmers, alongside government-led schemes such as Landscape Recovery and the Nature Restoration Fund (GOV.UK, 2025), highlighting the commitment from both the public and private sector to protect and restore the environment. The challenge is translating natural capital values to active capital markets.
The Issue
The Finance Gap for UK Nature highlighted that there is between a £44 and £97bn funding gap over the next 10 years for achieving the UK’s nature-related outcomes. Private financing is essential to support nature recovery. The closure of the Sustainable Farming Incentive without a notification period has dealt a blow to farmer confidence in government schemes (Sansome, 2025), however it has highlighted opportunities to spread risk through using a combination of private markets and public funding.
As highlighted in the most recent roundtable discussion this month with Mary Creagh, the Minister for Nature, interest in nature markets is widespread but participation is held back due to lack of effective governance, credit integrity, absence of market rules, and uncertainty over future market development (UK Nature Markets Dialogue, 2025).
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Challenges
The market for biodiversity metrics has become saturated, with over 140 different metrics currently available (Bloom Labs, 2025). The British Standards Institute has developed a framework that outlines overarching principles for nature markets, including the supply of biodiversity benefits and nature-based carbon benefits. Additionally, frameworks for the supply of nutrient reduction benefits and for community engagement related to natural capital products are in development. Funded by DEFRA, these frameworks aim to enhance the integrity of biodiversity credits and provide clear guidelines for both landowners and investors.
Questions remain about the opportunities of stacking and additionality. However, with a current call for evidence from the government to understand how they can support and incentivise business to invest in nature recovery, this highlights the government’s commitment to creating a route for private investment.
Marketplace updates: BNG
BNG is currently generating £454.6m in annual economic value. This demand is driven by heightened regulatory pressures, such as the Taskforce for Nature-related Financial Disclosures, as well as uncertainty surrounding public funding. Insights from the voluntary market indicate that there is no distinct trend among industry buyers; however, the importance of locality is critical for these buyers (Gradeckas, 2025).
The stability and direction of policy and funding from the public sector is crucial for instilling confidence in the private sector that these markets are viable for investment. The implementation of Biodiversity Net Gain (BNG) on Nationally Significant Infrastructure Projects has been postponed until May 2026 (GOV.UK, 2025). The consultation on this issue is set to close on 24 July 2025.
There are proposals to create and expand exemptions, potentially including all developments of nine houses or fewer. Currently, these small developments account for 70% of residential planning applications in the UK (George, 2025). These proposed changes are causing uncertainty, leading to a significant level of risk for market leaders in the nature sector.
Through our Nature Environment Investment Readiness Fund with Sylva and Forestry Canopy Foundation, we have researched the current and potential future BNG market opportunities within ‘Woodlands into Management’, to support the £1.3bn ‘finance gap’ for woodland creation and management (Hollingdale, 2023). Co-developed projects and engaging with buyers from the outset can create bespoke, high-integrity schemes across a range of habitats, including woodlands, watercourses, grassland and scrub.
Marketplace Updates: Carbon
The growth of the voluntary carbon market is steadily increasing at 28% (GOV.UK, 2023). It is expected to continue growing, with demand from both the voluntary and compliance markets. Units have doubled in price from £11.02 in 2020 to £26.85 in 2024. Traded carbon values are predicted to increase by 300%, averaging £109 per unit by 2035 (GOV.UK, 2024).
Carbon markets are estimated to attract £10bn in private capital annually by 2035 (BeZero, 2025).
Figure 1. Trajectory of Market Carbon values (GOV.UK, 2025)
Marketplace Update: Others
There are several emerging markets worth exploring on a site-by-site basis, including nutrient neutrality, flood mitigation, soil carbon, air quality, and societal benefits. The nutrient neutrality market, developed by Natural England, is relatively small and may become obsolete in the future. In contrast, flood mitigation and water quality markets are more economically viable and are best suited for landscape-scale initiatives that involve early engagement.
Additionally, enhancing supply chain resilience can encourage businesses to invest in land that directly impacts their supply chains. Green social prescribing, primarily funded by the public sector, represents another potential marketplace. However, it appears that this will continue to rely on public funding.
Our Advice
For a landowner:
Firstly, we would advise determining what your personal aims are for the land
Secondly, identify areas for potential habitat conversion and restoration. A basic landscape design may help to visualise these opportunities
Next, undertake a baseline of your existing habitats - this will establish their current condition and potential market opportunities
Source buyers based on your opportunities, be it through contacting local NGOs, seeking out businesses with a vested interest in the land, or identifying local BNG demand.
Developers often seek off-site providers or habitat banks to secure a mix of complex habitats – including woodlands – from a single source (GFI, 2024). Depending on this scoping, it may be more beneficial to engage with neighbouring landowners to support a larger-scale undertaking if the demand is present.
We create cost models over a 30-year period to estimate project costs and incomes. Additionally, assess and highlight areas where grant funding may be the most cost-effective option. Blending finance may be an option, or staging grant funding for establishment, followed by private finance for enhancement.
Figure 2. Overview of the process for BNG unit creation
Final words
The government's commitments to nature, along with its inability to fulfil these commitments without private investment, create a strong likelihood that the natural capital marketplace will continue to grow. Although there are still questions about which "nature units" will be sold, we encourage landowners to explore their options. They should conduct baselining with a qualified ecologist, establish a clear monitoring plan to track improvements in habitat condition, and develop high-integrity projects. This approach will ensure that the units created are resilient, enabling landowners to take advantage of early opportunities.
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