Building Confidence in Nature Finance

Rachel Nixseaman
Nov 25, 2024
2 min read

Updated: Apr 29

Overview

Deciding Matters was one of 28 organisations to participate in the Building Confidence in Nature Finance roundtable event on 6th and 7th November 2024. The event, facilitated by Realise Earth and hosted in Stirling, brought together participants with diverse insights and expertise in nature finance, including: investors, auditors, project managers, land owners, board members, community engagers and more.

Chatham House Rules were in play, allowing participants to be fully transparent about the challenges their sectors are facing with regards to the UK’s rapidly evolving nature finance market, and the actions which could be taken to inspire more confidence in nature finance as an effective model for change.

Our Director Rachel was there to highlight challenges faced by communities who are often left watching the land around them change drastically without being given the opportunity to join the decision-making process and ensure local voices are being heard.

Key Questions

What is nature finance?

Nature finance is the method of investment activity where money is used specifically to finance or invest in improvements to the natural environment. This could be private investment (from, for example, a bank or investment firm), government funding, philanthropic donations, etc.

How are communities impacted?

As land across Scotland is being commodified as part of the nature finance market, those communities living on (or around) and working on the land are impacted on a day-to-day basis. Impacts could include positives such as new local jobs, protected access to green spaces, citizen science projects, etc. Impacts may also negatively impact communities, such as changes of land use which may effect traditional agricultural practices, or restricted access to natural resources, such as peatlands. Each nature finance project will have its own individual impacts on the community, both positive and negative, and these should be identified by the project and the community working collaboratively to identify risks and opportunities.

What work is being done to support communities?

Scottish Government’s Natural Capital Market Framework was published in November 2024, promoting responsible, values-led investment in natural capital. This Framework is being used to underpin a range of projects and resources across Scotland and the wider UK, including Deciding Matters’ Best Practice Guide: Community Inclusion for Community Benefit and Scottish Land Commission’s Community Benefits Route Map.

Currently, community inclusion and community engagement is seen as additional best practice for a nature finance project, rather than an essential step in delivery, although high expectations of the delivery of community benefit from Scottish Government and private investment firms will likely lead to higher levels of meaningful engagement. Scottish Government and UK Government are currently jointly funding work from BSI to create a community standard, which will further support communities to benefit from the nature finance market.