A joint initiative between the Green Alliance and the National Trust is progressing work on a proposed Natural Infrastructure Scheme (NIS) model - the pioneering new funding concept would deliver environmental restoration and improvement via the model for creating private markets for ecosystem services from land.

The NIS model has already been proposed for services such as flood prevention and water quality improvement - the concept is due to be trialled in Cumbria soon.

A new report from Green Alliance and the National Trust explores how the NIS concept could also be used as a way for landowners and farmers to trade carbon credits with businesses wanting to reduce their environmental impact.

Adding carbon reduction for climate change mitigation to the package of services that could be offered in a NIS could help make more marginal environmental improvement schemes more viable. It could also help the UK to achieve its carbon targets and provide a new source of funding for farmers and land managers.

The report says:

“Carbon emissions reductions and sequestration are a common side effect of many land management changes that also deliver better water quality and flood prevention.”

Land use is becoming a significant focus in the effort to reduce carbon across the economy, with agriculture accounting for about 10% of UK emissions.

The Committee on Climate Change is currently preparing advice for the government on setting a net zero carbon target for the UK. However, the Green Alliance and National Trust’s analysis suggests that new government policy will be needed, specifically targeting the farming and land use sectors to achieve this.

While changing land management through practices such as planting cover crops or trees, farmers and land managers can reduce their carbon emissions.this can be expensive. The analysis suggests that, in most circumstances current funding arrangements mean tree planting, peat restoration and changes to agricultural management are not financially attractive.

Expanding NIS model to cover climate change mitigation will make many more environmental projects viable

The report proposes that a new Farming and Soil Carbon Code, building on existing carbon credit schemes for woodland and peatland restoration, would mean UK farmers and land managers could sell carbon credits alongside other environmental benefits as part of a Natural Infrastructure Scheme, making many more environmental projects viable.

Shaun Spiers, executive director of Green Alliance, said:

“The Natural Infrastructure Scheme concept can be used to reduce flood risk and improve water quality. The ability to sell other benefits such as climate change mitigation through this model will increase the number and scale of viable restoration projects. The government should act now to make the most of this potential by delivering on its promise to strengthen UK carbon credit markets.”

Patrick Begg, Outdoors and Natural Resources Director at National Trust, added:

“There’s increasing recognition that if the UK is to meet its long-term ambitions on climate change it needs to lock up more carbon in our soil, peatland and woods. Farmland needs to be at the heart of this approach, and farmers should be financially rewarded for this.

“Our latest research shows that by “stacking up” these climate change benefits alongside improvements to water quality and better flood management, farmers can benefit through new Natural Infrastructure Schemes which unlock money from the private sector. But we need government to get behind this, including by acting as a buyer of services themselves, and also backing new carbon credit schemes.”

New report is part of collaborative project supported by Southern Water

The new report forms part of a collaborative project, led by the National Trust and Green Alliance, and supported by Southern Water. The aim of the project is to develop and catalyse new market solutions to support sustainable land management on UK farmland - a new approach to managing land for profit and the environment.

The Natural Infrastructure Scheme model was first proposed by Green Alliance and the National Trust in 2016, centred on the provision of ecosystem services such as natural flood management.

A report published by Green Alliance in September 2016 New markets for land and nature: how Natural Infrastructure Schemes could pay for a better environment suggested that under the NIS, groups of farmers and downstream businesses enter into long term private contracts. Farmers could manage their land to reduce the risk of downstream flooding, and improve the quality of water, funded by organisations who would otherwise incur huge costs from flooding and water contamination. The report showed that a new private market in water management services could be a source of profit for upland farmers.

Two subsequent reports drew on the latest data and modelling, to analyse hypothetical water quality and flood protection schemes in East Anglia and north west England respectively to demonstrate how Natural Infrastructure Schemes could work in practice and who would benefit.

The latest report makes a number of key recommendations to Government, including the proposal that Defra should use the tests and trials for the new environmental land management (ELM) system to show how the government could be included as a ‘buyer’ in schemes such as the NIS, alongside private sector buyers.

Click here to download the full report: New routes to decarbonise land use with Natural Infrastructure Schemes February 2019

Click here to download New markets for land and nature: how Natural Infrastructure Schemes could pay for a better environment 2016

Click here to download Natural Infrastructure Schemes in practice: how to create new markets for ecosystem services from land September 2017

Click here to download Protecting our assets: using Natural Infrastructure Schemes to support sustainable agriculture December 2017