UK Launches $86 Million Nature Fund to Restore Landscapes at Scale

The United Kingdom has launched its first large-scale public-private nature restoration fund, raising £64.6 million ($86.4 million) in its first closing. The initiative, led by environmental investment manager Finance Earth, combines government support and institutional capital to finance woodland creation, peatland restoration, and biodiversity projects across England. The fund is significant because it introduces a new financing model designed to attract private investment into long-term environmental projects that help address climate change.

According to AgFunderNews, the new Big Nature Impact Fund LP is currently the largest nature-as-infrastructure fund ever created in the UK and the first to blend public and institutional investment specifically for nature restoration.

The fund received a £30 million cornerstone investment from the UK government's Department for Environment, Food and Rural Affairs (Defra). Additional backing came from major investors including Zurich Insurance Group, Admiral Group, Esmée Fairbairn Foundation, and the Church of England’s Social Impact Investment Programme.

The strategy is designed to overcome one of the biggest challenges facing environmental restoration: financing. Public funding alone is often insufficient to support large-scale, long-term projects. By combining government capital with private investment, the fund aims to close that gap.

A key feature of the structure is how government money is used. Defra’s investment acts as a first-loss buffer, meaning it absorbs potential losses before private investors are affected. This mechanism reduces risk and encourages institutional investors to participate in what remains a relatively new asset class.

As reported by AgFunderNews, Finance Earth Investment Director Rich Fitton said: “Structuring Defra’s capital as downside protection was fundamental to unlocking private finance at scale into what remains a relatively new asset class.”

The fund seeks to raise between £90 million and £120 million in total and has already identified more than £100 million worth of potential projects.

Rather than purchasing land directly, the 12-year fund will partner with landowners and project developers. Investments will focus on projects such as native woodland creation, peatland restoration, and habitat recovery.

Revenue is expected to come primarily from the sale of verified carbon credits and biodiversity units, rather than traditional sources such as agriculture, timber production, or land appreciation.

Finance Earth describes the approach as “nature as infrastructure.” The concept is inspired by investment models used in renewable energy sectors such as solar and wind power. Like renewable energy projects, nature restoration requires significant upfront capital and can generate long-term revenue streams over decades.

According to AgFunderNews, Fitton explained: “We design the funds to make it look and feel and smell as much like a traditional infrastructure fund as possible, because the underlying investments do look and live like infrastructure investment.”

The organization believes that natural capital investments could follow a similar growth path to renewable energy, where projects become more attractive to investors once they reach operational maturity.

Another distinguishing feature is the fund’s focus on fully verified carbon credits. This differs from many voluntary carbon markets, where credits are often sold before projects are fully validated. Finance Earth argues that verified projects will offer greater credibility and attract premium pricing from buyers seeking high-integrity environmental assets.

The initiative also reflects broader ambitions beyond England. Finance Earth has indicated plans to develop similar funds in Scotland, Wales, and Northern Ireland, potentially creating a template that could be replicated internationally.

The launch coincides with the merger between Finance Earth and the UK arm of investment advisory firm Capital Continuum Advisers. The combined organization says it aims to become one of the world’s leading platforms for climate and nature investment, expanding its reach into carbon and biodiversity projects in Africa and Southeast Asia.

As governments and investors search for effective ways to finance climate action, the UK’s new blended-finance model could become an important blueprint for future nature restoration projects around the world.