Investing in nature: a plan to support investment in biodiversity and climate adaptation in Scotland

Context

The 2021 Dasgupta Review on the Economics of Biodiversity, commissioned by HM Treasury, demonstrates that our economy is embedded in nature, not external to it. Historically, nature and our natural assets have been overlooked in decision-making, often because nature’s true worth to society has not been reflected in market prices. This has resulted in the degradation and sometimes even loss at local and regional scales of our natural assets, reducing their ability to provide the benefits from nature that we depend on and which underpin our society and economy. Degradation and loss of natural capital can also mean we are less resilient to changing climatic conditions^[1].

The Dasgupta review shows that our economy is fundamentally dependent on nature to supply the natural capital it needs and to absorb its wastes, including greenhouse gases. In response to this, Scotland’s National Strategy for Economic Transformation (NSET) refers explicitly to natural capital. NSET recognises our natural environment, alongside its intrinsic value, as an asset that provide flows of ecosystem services (e.g. clean water, carbon storage, recreational opportunities) which benefit our society and economy: an asset that makes human life both possible and worth living. Framing the natural environment in this way emphasises the need to invest in and manage this asset within safe environmental limits so that we can continue to enjoy these benefits.

Biodiversity and climate adaptation are both place-based and our interventions must therefore recognise and account for local ecological and social conditions in order to support a just transition. Successful long-term nature investments must involve local communities and actors, be place-based and underpinned by responsible stewardship.

The Scottish Biodiversity Strategy to 2045 (“SBS”) contains 22 Outcomes which will demonstrate that its Vision for 2045 has been achieved. Biodiversity: delivery plan 2024 to 2030 is the first Biodiversity Delivery Plan (the Delivery Plan) and contains over 100 actions which will set us on the path to delivering the Outcomes.

Scotland’s third National Adaptation Plan (SNAP3) is closely linked to the SBS and includes many actions in the Delivery Plan. It sets out how Scottish Government and its partners plan to increase the resilience of our natural environment, economy, communities and public services as well as how we are aligned with international frameworks. Nature is central to building climate resilience across Scotland, both in our urban and rural areas. SNAP3 includes measures to improve blue-green infrastructure, protect and enhance our natural carbon stores and build nature networks. Delivery of these actions and investment in nature are also investment in a climate resilient Scotland. As such, actions outlined in this Plan will also support the implementation of SNAP3.

The Plan sets out actions that will enable public, private and philanthropic investment to flow more effectively into nature restoration in a way that ensures it contributes to the delivery of SBS and SNAP3 priorities: through ecosystem restoration and species recovery programmes, nature networks and 30 by 30, as well as nature based solutions that contribute to climate adaptation, for example. This Plan identifies practical mechanisms and approaches that will guide investment towards these priorities.

The Plan was developed with input across a broad range of stakeholders and in parallel with engagement which informed the development of the Natural Capital Market Framework and public consultation on the SBS and Delivery Plan. It should be read alongside the Market Framework which provides guidance to investors, land managers, communities and other market participants. It provides links to tools and resources to develop natural capital projects that attract responsible private investment. It also highlights key interventions and developments expected by 2026 to strengthen Scotland’s position as a leader in high integrity natural capital markets. Through this Market Framework, the Scottish Government seeks to align investment opportunities with national priorities, ensuring that the benefits of natural capital are shared by all.