Recommendations & Conclusions
15 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 …
Read more
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 be published prior to the first day of the Bill’s Report stage in the House of Commons, to assist the House in understanding the implications of the Bill’s provisions for the development of natural capital markets. (Recommendation, Paragraph 32)
Show less
Government response AI summary
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. It further commits to considering …
Read full response →
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 …
Read more
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 fully integrating natural capital and natural capital risk into all of its decisions, including financial decisions. We note with concern that the environment and nature are not expressly included in the remits of any of the Mission Boards of the current administration. (Conclusion, Paragraph 35)
Show less
Government response AI summary
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.
Read full response →
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 …
Read more
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 those risks. (Recommendation, Paragraph 36)
Show less
Government response AI summary
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 policy decisions. It highlights the …
Read full response →
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 …
Read more
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 benefits of this approach will be for nature and the wider economy. (Recommendation, Paragraph 37) 55 Market supply
Show less
Government response AI summary
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 from 2026–27 to 2028–29 for …
Read full response →
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 AI summary
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.
Read full response →
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)
Read more
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)
Show less
Government response AI summary
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 streams for environmental delivery and …
Read full response →
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 …
Read more
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 damage to important biodiversity values, through legal or other effective means”. (Conclusion, Paragraph 89)
Show less
Government response AI summary
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.
Read full response →
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 …
Read more
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 pool their BNG requirements across multiple developments, while ensuring that the benefit from nature restoration is available to local communities. (Conclusion, Paragraph 91)
Show less
Government response AI summary
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.
Read full response →
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 …
Read more
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 (currently £9.6 billion over ten years) should be kept under regular review, with the Government publishing annual updates of progress. (Recommendation, Paragraph 92)
Show less
Government response AI summary
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.
Read full response →
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, …
Read more
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, Paragraph 155)
Show less
Government response AI summary
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 to use NSIPs to drive …
Read full response →
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 …
Read more
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 complexities of measurement, the Nature Markets Framework requires nature credits to be non-fungible, as they must be traceable. Units are therefore not interchangeable: the flow of goods in nature markets cannot be traded in the same way as fungible goods such as coffee or crude oil. (Conclusion, Paragraph 166)
Show less
Government response AI summary
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.
Read full response →
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 …
Read more
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 for the growth of the UK’s natural capital as well as establishing milestones in pursuit of that target. (Recommendation, Paragraph 167) 60
Show less
Government response AI summary
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.
Read full response →
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 …
Read more
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 ensure that credits traded through the UK market do not support market practices which put financial stability at risk. (Recommendation, Paragraph 168)
Show less
Government response AI summary
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 VCNM consultation.
Read full response →
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 …
Read more
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 the stacking and bundling of natural capital assets, and fulfilment of the remaining commitments made in the Nature Markets Framework 2023. Should it not have published these documents by the time of its response to this report, the Government should set out a timeline for the publication of each. Nature restoration schemes and policies must be designed to deliver long term assurance to investors. As far as possible, domestic policies should align with recognised international standards, for example using the approach of the International Sustainability Standards Board. (Recommendation, Paragraph 169)
Show less
Government response AI summary
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, and supports aligning with international …
Read full response →
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 …
Read more
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 negative impact on investment in nature restoration initiatives. (Recommendation, Paragraph 170) 61
Show less
Government response AI summary
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.
Read full response →