The Scottish Government have published their Biodiversity Investment Plan to support the creation of a nature finance system that enables funding and finance to flow into high integrity biodiversity outcomes. Investing in Nature is a plan to support investment in biodiversity and climate adaptation in Scotland and sits within the wider Scottish Biodiversity Framework.

It follows from the introduction of the Natural Environment (Scotland) Bill to Parliament last week which established a legal obligation for Government to set statutory targets for nature restoration. This also follows from the Government’s Scottish Biodiversity Strategy to 2045 and Biodiversity Delivery Plan 2024-2030 which were released in November 2024 with the aim of improving biodiversity and regenerating Scotland’s natural environment. Together, these documents set out Scotland’s ambition – and importantly, plan – to halt biodiversity loss and be nature positive by 2030, and to restore and regenerate biodiversity by 2045.

You can read more about the Trust’s reflections on the Biodiversity Strategy and our take on the Natural Environment Bill on our website.

The Investment Plan emphasises the role that all sectors in Scotland must play. It covers rural and urban organisations, public, private, and third sector groups, farmers, crofters, and community landowners. The Plan sets out actions that will enable public, private and philanthropic investment to flow more effectively into nature restoration to ensure delivery of Scotland’s biodiversity and nature priorities.

The Plan is underpinned by the Natural Capital Market Framework, which provides guidance to investors, land managers, and communities to develop natural capital projects that attract responsible private investment (for more information on natural capital please see the NatureScot website). The Trust has long advocated for bringing natural capital into mainstream decision making through the Scottish Forum on Natural Capital, which brings together public, private and voluntary sector organisations to protect, value and rebuild Scotland’s natural capital. We are pleased to see natural capital included in the Investment Plan for the enhancement of Scotland’s natural wealth and to provide economic opportunities and benefits for the whole of society – but the Plan must involve openness and collaboration with all stakeholders including environmental NGOs and local communities. Existing networks and forums such as the Scottish Nature Finance Pioneers hub within the Scottish Forum on Natural Capital can play a key role in this.

Currently, the Woodland Carbon Code and Peatland Code support private investment in woodland creation and peatland restoration. However, the Plan notes that there are many habitats across Scotland lacking similar market mechanisms, thereby limiting opportunities for investment. To address this, the Plan aims to scale up market-based investment, notably with the Ecosystem Restoration Code. This Code would establish the governance system needed to channel responsible private investment into projects that enhance the resilience of ecosystems. However, this Code would be a voluntary mechanism and therefore compliance would not be mandatory in the same way as Biodiversity Net Gain in England. The Government hopes to have fully tested options for this new Code by 2026. We would encourage the Government to consider statutory compliance-based approaches in the future if this voluntary market does not deliver investment – or benefits – for nature.

Another important element of the Plan is the emphasis on creating nature finance skills programmes with the aim of developing a more skilled workforce with the capacity and knowledge to deliver biodiversity projects. Investment in capacity to unlock nature finance will be critical for the economic transformation needed to meet net zero and establish a nature-positive economy.

This Plan lays the groundwork for increased investment in biodiversity and, “in time”, will ensure greater access to investment opportunities for farmers and land managers. While we welcome this Investment Plan and are pleased to see the progress the Government is making on its Biodiversity Framework, we are concerned that the caveat “in time” does not reflect the urgency of the nature crisis. We would also like to see Government pursue solutions to the nature crisis with the same urgency as they do with climate. As ever, we urge Government officials and MSPs to step up the pace and momentum and build on these documents collaboratively to push for meaningful, swift action to save our natural environment and secure a more prosperous, nature-rich future for generations to come.

Kirsty Richard, Policy Manager (Terrestrial)