The State of UK Nature Markets 2023 Report is the first annual review of progress made against the Financing Nature Recovery (FNR) roadmap and recommendations published in June 2022. The FNR Report was described as reflecting an ‘emerging consensus from the farming, business, finance and environment sectors across the country as to the actions needed to support development of these markets’ In the Government’s recently published Nature Markets Framework.

The review was undertaken by the Broadway Initiative with input from experts drawn from across the environmental, business, public and land-based sectors and independently reviewed the actions taken since the publication of the FNR report.

The report highlights three important developments: the British Standards Institution’s Nature Investments Standards Programme; the Nature Markets Framework for England; and the Scottish Government’s Interim Principles for Responsible Investment in Natural Capital. However, the report also found ‘limited progress in translating strategic goals and policy ambition into specific actions to facilitate market development,’ a situation exacerbated by the recent policy uncertainty over Nutrient Neutrality, and recommends rapid action is needed on demand drivers and governance to ensure impact and integrity.

Broadway Initiative Convenor Edward Lockhart-Mummery said: “High integrity nature markets are crucial to addressing the funding gap for UK nature recovery. The UK Government aims to generate £1bn of private investment in nature every year by 2030, and our report has highlighted the structural barriers to reaching that goal. Some progress has been made, but Defra and other departments can do even more, so we are calling on the Government to make the best use possible of the upcoming consultation and review of carbon and nature markets as a vital opportunity to renew the momentum.

“COP 28 is absolutely the moment to make this happen, to reassert the UK’s role as a global leader in green finance."

The Broadway Initiative is ready to support the UK and devolved Governments in delivering the four priorities for action identified in the State of UK Nature Markets 2023:

• Create and deliver an implementation plan for a robust governance and institutional architecture for nature markets
• Quantify and stimulate private and public sector demand for purchased nature services
• Build capacity among Local Authorities, regulators, and land managers of all types, to deliver nature-based projects that can attract private income and investment
• Ensure the continued evolution of the stacking principle as a means of future-proofing the supply of land delivering multiple nature benefits

NOTES TO EDITORS

• The Broadway Initiative is the coalition of UK trade associations working to 'mainstream' sustainability into the UK economy. Broadway works across the breadth of the business community to understand what is needed to achieve environmental and climate change objectives, then collaborates with UK governments on the frameworks required and develops plans and partnerships in the private sector to implement change.
• For further enquiries, please contact liam@broadwayinitiative.org.uk