Recommendations & Conclusions
35 items
1
Recommendation
1st Report – The role of natural capita…
Accepted
The Government should undertake an impact assessment of the Planning and Infrastructure Bill to assess how the Nature Restoration Fund would interact with and impact upon the operation of Biodiversity net gain and of broader Government initiatives to encourage investment into nature markets. The Committee expects this impact assessment to …
Government response. The government states an impact assessment for the Planning and Infrastructure Bill was published on 6 May 2025 and explains how Biodiversity Net Gain and the Nature Restoration Fund are complementary, and how the Bill supports investment in nature markets. …
2
Conclusion
1st Report – The role of natural capita…
Acknowledged
Natural capital assets are an essential foundation of the UK and global economy, and we consider that a natural capital approach is vital if the overall value of nature to the UK is to be properly evaluated and developed. (Conclusion, Paragraph 34)
Government response. The government acknowledges the conclusion by agreeing that the natural capital approach helps demonstrate nature's benefits and promotes sustainable economic growth by making nature's value more visible to businesses and investors.
3
Conclusion
1st Report – The role of natural capita…
Accepted
The work done so far in Government to incorporate natural capital approaches into policymaking and the overall evaluation of the economy is welcome: but there is little evidence to how this approach genuinely informs Ministerial and Cabinet decisions on the economy. The Government is yet to demonstrate how it is …
Government response. The government describes existing guidance (Green Book, ENCA, Environmental Principles Policy Guidance) and established processes to assess climate and environmental impacts in fiscal decisions, particularly for Spending Review 2025, as mechanisms for integrating natural capital into policy and financial decision-making.
4
Recommendation
1st Report – The role of natural capita…
Accepted
We recommend that in its response to this report the Government provide an assessment of the extent to which a natural capital approach is currently incorporated into decisions on policy, how risks to current levels of natural capital are taken into account, and what measures are in place to mitigate …
Government response. The government provides an assessment by detailing how the natural capital approach is incorporated through the Green Book Supplementary Guidance, Environmental Principles Policy Guidance, and the Environmental Improvement Plan, which includes mechanisms for assessing progress and ensuring environmental considerations in …
5
Conclusion
1st Report – The role of natural capita…
Accepted
We expect the Government to use the June 2025 Spending Review to set out how it has taken a natural capital approach to the evaluation of spending decisions as well as to set out how the approaches taken will grow the UK’s stock of natural capital; and what the expected …
Government response. The government confirms it established processes for Spending Review 2025 to assess climate and environmental impacts of fiscal decisions, requiring departments to provide relevant information for spending bids. It further highlights that the Spending Review committed over £2.7 billion annually …
6
Conclusion
1st Report – The role of natural capita…
Accepted
Taxpayer purchase of ecosystem services alone is no longer a sufficient mechanism to deliver the overall improvement in ecosystem services necessary for the scale of nature recovery required. (Conclusion, Paragraph 49)
Government response. The government agrees more private investment is needed for nature recovery, outlining a strategy for multifunctional land use and confirming over £2.7 billion in annual investment for farming and nature recovery, with ELMS funding increasing to £2 billion by 2028/29.
7
Conclusion
1st Report – The role of natural capita…
Accepted
The Committee agrees with the Government’s current approach to driving investment into nature recovery through drawing in private finance. Whatever the source of the funds, policy should ensure that farmers and land managers are supported to deliver ecosystem improvements while also farming to produce food. (Recommendation, Paragraph 50)
Government response. The government agrees to support farmers and land managers to deliver ecosystem improvements alongside food production, detailing an investment of over £2.7 billion annually in farming and nature recovery, including significant increases for Environmental Land Management Schemes, to provide income …
8
Recommendation
1st Report – The role of natural capita…
Acknowledged
The supply of natural capital schemes to the market is inherently limited by the land space which is in practice available for nature restoration. There are constraints in the UK in delivering projects at the scale seemingly required for the international market. Therefore there is merit in the Governments support …
Government response. The government stated its intent to work with the sector to develop a long-term plan for incentivising and funding nature recovery, including a Farming Roadmap with spatial prioritisation, taking Land Use Consultation responses into account.
9
Conclusion
1st Report – The role of natural capita…
Deferred
There is a clear role for Government in encouraging landowners and land managers to engage in the use of land to increase the stock of natural capital assets. One way to do this is through incentivising the allocation of land to natural capital schemes, thereby developing their supply to the …
Government response. The government states that responses to the Land Use Consultation and a call for evidence published in June 2025 are informing its approach to incentive design for nature recovery.
10
Recommendation
1st Report – The role of natural capita…
Rejected
The Government should keep under review the effect of its fiscal policy on the availability of land for natural capital investment. In particular, the effect of the inclusion of environmental improvement schemes within the scope of APR relief from April 2025, combined with the changes to APR thresholds to be …
Government response. The government agrees to monitor changes to agricultural property relief in the normal way but rejects the recommendation to report to the House by a specific deadline due to data lag and complexity.
11
Conclusion
1st Report – The role of natural capita…
Acknowledged
The Government’s projections for changes in land use in England by 2050, contained in its current consultation on a Land Use Framework, indicate a potentially substantial increase in the land area allocated to nature recovery, either alongside or instead of agricultural production. 56 Implementation of any land use framework, and …
Government response. The government outlines its plan to work with farmers to co-create a long-term Farming Roadmap and develop a Land Use Framework to safeguard agricultural land and ensure food security.
12
Recommendation
1st Report – The role of natural capita…
Acknowledged
We welcome the consultation on a Land Use Framework and look forward to its publication. We recommend that in the Framework Ministers clarify how environmental land management schemes and other nature funding for farmers ought to complement wider nature restoration efforts and funding for nature restoration projects. We expect the …
Government response. The government states it will work with farmers to co-create a Farming Roadmap and develop a Land Use Framework, which will include approaches to incentivising nature recovery and safeguarding food production.
13
Conclusion
1st Report – The role of natural capita…
Deferred
To ensure the effective delivery of its commitments to protect 30% of land in England for nature, the Government will need to consider how to make environmental land management more accessible and attractive to landowners and land managers. This will require the removal of any existing barriers to engagement and …
Government response. The government states that responses to the Land Use Consultation and a call for evidence published in June 2025 are informing its approach to incentive design and engagement for nature recovery.
14
Recommendation
1st Report – The role of natural capita…
Deferred
We recommend that as part of the forthcoming Land Use Framework the Government undertake a thorough review of its approach to incentivising the allocation of privately held land to nature recovery, in particular in respect of changes of use of agricultural land to deliver more environmental benefits alongside agricultural production, …
Government response. The government states that responses to the Land Use Consultation and a call for evidence published in June 2025 are informing its approach to incentive design for nature recovery.
15
Conclusion
1st Report – The role of natural capita…
Accepted
Ministers have set out the criteria they plan to use to establish whether land in England is considered to be ‘protected’ for the purposes of the 30by30 commitment. We note that an area is to be considered ‘protected’ if it can be shown that it is “protected against loss or …
Government response. The government confirmed its 30by30 vision and criteria, stating it is developing more detailed guidance on interpretation and application, alongside an action plan and assessment/reporting processes, all to be published later in 2025.
16
Recommendation
1st Report – The role of natural capita…
Deferred
We recommend that in its response to this report the Government clarify— • what it considers to be ‘effective means’ of protection against loss or damage to important biodiversity values for the purposes of designating land in England as ‘protected’ for the purposes of the 30by30 commitment; 57 • how …
Government response. The government is developing detailed guidance and an assessment/reporting process for its 30by30 commitments and plans to publish these, along with its action plan, later in 2025.
17
Recommendation
1st Report – The role of natural capita…
Accepted
For successful nature markets to be delivered there needs to be an effective balance between efficiencies of scale and local accountability which brings about local buy-in and transparency, ensuring that offsets are being delivered to a high standard. A method for this to be achieved is through facilitating developers to …
Government response. The government outlined ongoing BNG consultations, including efforts to simplify the small sites metric and increase access to the off-site market for SME developers, aiming to make BNG delivery easier and ensure local biodiversity benefits.
18
Recommendation
1st Report – The role of natural capita…
Accepted
The Government should continue to demonstrate leadership on natural capital markets by evaluating and reviewing the BNG policy and whether its design, metrics, and implementation remain effective in increasing investment into natural capital projects and delivering measurable improvements in nature recovery. Estimates of the investment to be generated from BNG …
Government response. The government confirms it continues to monitor BNG, has launched consultations to improve its operation, and will keep monitoring and evaluation requirements under regular review, publishing reports periodically.
19
Recommendation
1st Report – The role of natural capita…
Deferred
We are concerned to note that the Government has not yet published full details of its approach to the investment of revenues from the sale of BNG credits. The Government must demonstrate that it is committed to this approach to nature renewal, rather than treating it as another source of …
Government response. The government states it is legally obligated to spend BNG credit income on habitat projects and is working to design a transparent allocation method, with more details to be announced in due course.
20
Conclusion
1st Report – The role of natural capita…
Acknowledged
Compliance, or an expectation of compliance with a future regulation, is a significant driver of demand for nature markets. Clarity and investor confidence in regulatory rules and functions is essential to maintaining stable demand and driving opportunities for investment. (Conclusion, Paragraph 121)
Government response. The government reiterates its support for BNG policy, noting two recent consultations aimed at improving and extending its application to ensure development leaves biodiversity in a better state.
21
Conclusion
1st Report – The role of natural capita…
Acknowledged
Regulatory requirements are typically seen as an obstacle to market efficiency. In the case of BNG, compliance consistency is fundamental to trust in the system and the fair and transparent operation of the market. (Conclusion, Paragraph 122) 58
Government response. The government reaffirms its support for Biodiversity Net Gain (BNG) policy and details recent consultations on applying BNG to Nationally Significant Infrastructure Projects (NSIPs) from May 2026, and improving BNG for minor and brownfield developments. They highlight commitment to economic …
22
Recommendation
1st Report – The role of natural capita…
Accepted in Part
We recommend that the Government consult on measures to increase compliance as a market driver, potentially through expanding BNG requirements or mandating corporate disclosure of nature-damaging activities. (Recommendation, Paragraph 123)
Government response. The government has launched consultations on mandatory BNG for Nationally Significant Infrastructure Projects (NSIPs) and streamlining BNG for smaller developers, which aligns with expanding requirements and driving consistency. They also launched a call for evidence on increasing private investment in …
23
Recommendation
1st Report – The role of natural capita…
Accepted in Part
The Government should also ensure that on-site gains have sufficient transparency and scrutiny of delivery—through sufficient funding of local authorities to deliver checks, and provision to local authorities of the capacity to undertake enforcement action—with a commitment to reforming the delivery of on-site gains if widespread non-compliance is detected. We …
Government response. The government agrees with the principle of reviewing on-site BNG effectiveness but does not commit to the specific proposed timeline. They have allocated an additional £10m this financial year (on top of £35m previously) to assist local planning authorities with …
24
Conclusion
1st Report – The role of natural capita…
Acknowledged
For the Government to determine whether it has delivered on its target to deliver £1 billion of private investment into nature recovery annually by 2030, it must have primary data on relevant financial flows to provide a thorough understanding of investment levels, which it currently lacks. (Conclusion, Paragraph 125)
Government response. The government acknowledges the need for data by stating it is engaging with external partners and the Office for National Statistics to establish a mechanism for monitoring economy-wide expenditure into nature's recovery. They are also collaborating with The Green Finance …
25
Recommendation
1st Report – The role of natural capita…
Acknowledged
The Government should urgently address the gaps in its data and understanding around the level of investment into nature recovery projects. We recommend that within 12 months of the date of publication of this report the Government provide a report to the House on current and projected levels of private …
Government response. The government acknowledges the need to address data gaps by engaging with external partners and the Office for National Statistics to establish a mechanism for monitoring economy-wide expenditure into nature's recovery. They also reference working with The Green Finance Institute, …
26
Conclusion
1st Report – The role of natural capita…
Acknowledged
It is vital to develop a substantial baseline to measure natural capital improvement metrics against. This is already taking place in some respects (e.g. Natural Capital Ecosystem Assessment (NCEA) data for woodlands) but the current programmes arguably do not provide sufficient granularity to support decisions at farm level. The British …
Government response. The government acknowledges the need for a robust baseline assessment methodology and states it is continuing to sponsor the British Standards Institution’s Nature Investment Standards Programme, which is producing a suite of standards, including the recently published Overarching Principles Standard …
27
Recommendation
1st Report – The role of natural capita…
Acknowledged
The Government must continue to work with both public and private sector organisations, including the British Standards Institute and the International Sustainability Standards Board, so as to establish a clear and robust 59 baseline assessment methodology against which all gains will be measured. The Government should do this not later …
Government response. The government acknowledges the need to establish a clear and robust baseline assessment methodology, stating it is continuing to sponsor the British Standards Institution’s Nature Investment Standards Programme and is exploring options for the methodology. They do not commit to …
28
Conclusion
1st Report – The role of natural capita…
Acknowledged
The ability for nature credits to traced through clear and transparent means is key to ensuring market integrity. Although a register of BNG sites available for offsite investment has now been established, the public interface is still not fully accessible and overall visibility of financial flows into onsite and offsite …
Government response. The government confirms the existence of a publicly available off-site BNG register and acknowledges that some on-site data exists but is not easily navigable in a single location. However, they state they currently have no plans to develop an on-site …
29
Recommendation
1st Report – The role of natural capita…
Rejected
We recommend that not later than 12 February 2026—the start of the next biodiversity net gain reporting year—the Government establish a comprehensive and publicly accessible register of: • the location of onsite and offsite assets being developed under statutory provision for biodiversity net gain; • the identity of investors in …
Government response. The government states that a publicly available register for off-site BNG already exists but explicitly rejects the recommendation to establish a comprehensive, publicly accessible register including on-site assets, investor identities, and credit owners by 12 February 2026, stating they have …
30
Recommendation
1st Report – The role of natural capita…
Accepted
The Government must set out unequivocally its support for BNG policy and ensure that it continues to deliver genuine habitat net gains and supports a thriving market in natural capital credits. The Government should make use of Nationally Significant Infrastructure Projects as a method to drive support for BNG. (Recommendation, …
Government response. The government unequivocally states its continued support for BNG policy. They confirm that BNG will be introduced for Nationally Significant Infrastructure Projects (NSIPs) from May 2026 and that a consultation is underway to determine its application, directly addressing the recommendation …
31
Conclusion
1st Report – The role of natural capita…
Accepted
Our inquiry has found many financial mechanisms that can be employed to fund nature recovery: nature markets are one piece of the puzzle. Natural capital assets cannot be directly traded with the same ease as carbon dioxide allowances or carbon credits, owing to their inherent locational basis. In addition to …
Government response. The government agrees that biodiversity is location-specific and that markets must reflect this, highlighting the BNG scheme, development of domestic standards, rejection of international biodiversity offsetting, and exploring regulatory oversight through the VCNM consultation.
32
Recommendation
1st Report – The role of natural capita…
Accepted
The Government should clearly define its expectation for the level of nature recovery in England which is likely to be achieved through the operation of nature markets, and should set out the criteria against which progress will be evaluated. In doing so, the Government should set, and publish, a target …
Government response. The government highlights existing initiatives and market growth, stating that Environment Act Targets are already set to improve natural capital and interim targets are in the Environmental Improvement Plan, implying these address the committee's call for targets and criteria.
33
Conclusion
1st Report – The role of natural capita…
Accepted
Nature and biodiversity are highly location specific and a market which trades in biodiversity credits must account for this. The UK Government should ensure that the UK market has integrity and strong regulation that minimises the risk of the UK market offshoring its nature degradation. Care should be taken to …
Government response. The government agrees on the need for market integrity and outlines existing actions like BNG metrics and BSI Nature Investment Standards. It also commits to exploring options to strengthen regulatory oversight, market rules, assurance frameworks, and financial resilience through the …
34
Recommendation
1st Report – The role of natural capita…
Accepted
To achieve success in nature markets, the Government must produce the full suite of documents that will be fundamental to its success, including the Land Use Framework, the Government responses to the consultations on a UK Green Taxonomy and on raising integrity in voluntary carbon and nature markets, rules on …
Government response. The government commits to publishing the Land Use Framework and its response to the VCNM consultation later this year, and a decision on the UK Green Taxonomy soon. It notes existing guidance and ongoing consultation for stacking and bundling rules, …
35
Recommendation
1st Report – The role of natural capita…
Accepted
At such an early stage it is difficult to assess the full impacts of the biodiversity net gain policy. The Government should remain steadfast in its commitment to implementation of this policy: any indication that it could be rolled back would cause uncertainty in the market and would have a …
Government response. The government states its continued support for the BNG policy, demonstrating this commitment by outlining two recently launched consultations on applying BNG to NSIPs (due May 2026) and improving BNG for minor and brownfield developments.