A new plan to attract responsible private investment into natural capital markets has been launched for Scotland.
Minister for Employment and Investment, Tom Arthur, launched Scotland’s Natural Capital Market Framework as he spoke at the Nature Finance UK 2024 conference.
The framework provides guidance for investors, land managers and communities on attracting responsible private investment into peatlands, woodlands and nature restoration. Its focus is on maintaining the high standards that have been set by the Woodland Carbon Code and Peatland Code.
It supports Scotland’s ‘National Strategy for Economic Transformation’ and will contribute to two of the government’s key priorities: driving sustainable economic growth and tackling the climate and nature crises.
Research published this week also shows that Scotland’s natural assets contribute more than £40 billion to the economy and support around 260,000 jobs.
Mr Arthur said, “This framework outlines the steps we will take to attract greater responsible private investment into high-integrity natural capital projects. Scotland’s breathtaking landscapes, rich biodiversity, and abundant natural resources are much more than a source of pride – they are the foundation of our future prosperity with investment being key to economic growth.
“Our peatlands, forests, rivers, and coastlines are valued at £230 billion, providing essential services like clean air, fresh water, carbon sequestration, and resilience to the impact of climate change. We have committed to restoring 250,000 hectares of degraded peatlands, halting biodiversity loss and establishing tens of thousands of hectares of new woodland in the next five years, generating good, green jobs and skills training – mostly in rural communities.
“We take this responsibility seriously – but it is abundantly clear, that to meet our targets for cutting emissions, we need private investors to share the load. This framework gives us a guide to attracting responsible investment partners to join our work in restoring and enhancing our natural assets and the opportunities for our communities and our economy.”
Jo Pike, Chief Executive, Scottish Wildlife Trust, said, “A healthy natural environment is our most precious asset. In the face of the nature and climate emergency it’s vital to focus on the future we want to create – for nature and communities.
“It is heartening to see a positive direction of travel, along with some of the first steps on the journey, set out in the new Framework. Over time, this will no doubt evolve, as an ever-growing number of people realise that we all have a stake in its success.”
Emma Cooper Head of Land Rights & Responsibilities, Scottish Land Commission, said, “The Scottish Land Commission welcomes the publication of the Natural Capital Market Framework which provides clarity on government expectations for high-integrity, values-led private investment in Scotland’s natural capital. This framework not only sets out the actions stakeholders can take to ensure responsible investment but also emphasises the importance of community benefits as essential to a fair and functional nature market.
“Scotland is setting a new standard in the UK by clearly defining the role of community benefits in natural capital investments.”