Source · National Audit Office

The Nature for Climate Fund

Published: 23 Mar 2026 Recommendations: 9 Type: Value for Money Department: Department for Environment, Food & Rural Affairs

Defra’s Nature for Climate Fund has helped boost tree planting and peatland restoration but work is now needed to maintain momentum

Dept: Department for Environment, Food & Rural Affairs Topics: Climate change and net zeroEnergy and environmentFood and farmingRural and countryside nao.org.uk →

Recommendations

9 items
Government response pending.

The NAO has not yet recorded a response to these recommendations. This report was published 23 March 2026.

Rec Recommendation Addressee Acceptance Implementation
1
Defra should take the following actions. a Further improve its monitoring of intended beneficial outcomes from its investment in tree planting and peatland restoration activities. This would support assessments of value for money and better-informed investment decisions. It should: ? continue building on its existing monitoring frameworks to inform its modelling and measurement of delivery against its targets for beneficial outcomes from tree planting and peatland restoration; and ? support those delivering projects to capture necessary information against these frameworks, for example through use of efficient, digital technologies and by ensuring information requirements are comprehensive at the start to avoid later requests for data which have not been collected. Where there are gaps in current data, such as species mix, it should assess the costs and benefits of including these in future tree planting programmes.
Ref Page 13, para 26
Department for Environment, Food and Rural Affairs Pending
2
b Ensure there is a process to prioritise across different tree planting objectives b if and when required in future programmes. For example, between carbon reduction, timber production and nature improvements. This would help inform which delivery approaches and mechanisms are most appropriate
Ref Page 13, para 26
Department for Environment, Food and Rural Affairs Pending
3
c Take a more proactive approach to managing tensions between the government?s ambition to restore nature and other policy objectives that are putting development pressure on peatland and woodland. This should include working with other government departments to resolve tensions where policy responsibility is outside of Defra, such as housing development and renewable energy generation.
Ref Page 14, para 26
Department for Environment, Food and Rural Affairs Pending
4
d Use its monitoring of progress towards long-term targets for tree planting and peatland restoration by 2050 to make an ongoing assessment of whether they remain realistic. If targets are not achievable, Defra should reset them and set out the implications for achieving net zero by 2050.
Ref Page 14, para 26
Department for Environment, Food and Rural Affairs Pending
5
e Ensure delivery capacity is aligned with tree planting and peatland restoration targets. It should: ? ensure capacity in delivery bodies is sufficient to deliver its targets for tree planting and peatland restoration to 2050; ? continue to identify and support enabling activities that help build capacity and skills in relevant wider sectors, including contractor capacity; and ? ensure learning from its enabling projects to-date is used to inform implementation of the Forestry Sector Skills Plan for England.
Ref Page 14, para 26
Department for Environment, Food and Rural Affairs Pending
6
f Where possible, reduce uncertainty for delivery partners and wider stakeholders, particularly during transition periods. This should include clarifying detailed plans and schemes for future peatland restoration and tree planting schemes to 2030 as soon as possible to maintain momentum. It should also look to ensure transition planning is built into all future programmes ? not only tree planting and peatland restoration ? where long-term certainty is important for capacity building and delivery
Ref Page 14, para 26
Department for Environment, Food and Rural Affairs Pending
7
Defra is currently planning how tree planting and peatland restoration activities will be taken forward in future. Defra used the Programme to test different approaches. It should now take the opportunity to apply learning from the Programme to its design of future schemes, including doing the following. g Maximise learning from research projects and innovative pilot schemes. This should include ensuring rigorous approaches to evaluation and mechanisms for sharing and disseminating learning, within Defra and its arms-length bodies and across the wider forestry and peatland sectors, are in place.
Ref Page 14, para 27
Department for Environment, Food and Rural Affairs Pending
8
h Where appropriate, simplify the grant landscape and application processes for tree planting and peatland restoration schemes. This is important to make grants understandable and accessible, to reduce barriers to participation.
Ref Page 14, para 27
Department for Environment, Food and Rural Affairs Pending
9
i Create the right conditions to attract private investment in nature restoration activities. For example, this could include greater clarity and certainty around long-term objectives, having a consistent and credible pipeline of planned activity, and supporting development of new carbon markets.
Ref Page 14, para 27
Department for Environment, Food and Rural Affairs Pending