Aims/priorities: The Natural Environment Investment Readiness Fund (NEIRF) has been established to fund nature projects in England which tackle climate change, create and restore habitats, or improve water quality.
The scheme aims to stimulate private investment and market based mechanisms that improve and safeguard the natural environment by helping projects become investment ready. The intention is to establish a pipeline of projects for the private sector to invest in, and develop new funding models that can be replicated elsewhere.
The fund will help organisations obtain specialist advice, engage investors and build capacity to develop their project to the stage when it is ready to receive and repay investment. Projects need to be replicable and scalable, with key learnings made public to encourage similar approaches to access private sector finance for nature projects in future.
Examples of ecosystem services that could produce revenue include:
- Selling carbon credits from woodland creation or peatland restoration, using the Woodland Carbon Code or Peatland Code.
- Selling biodiversity units from a habitat bank, using the Natural England biodiversity offsetting metric.
- Selling ‘catchment services’ (such as improved water quality and natural flood management benefits) resulting from natural environment improvements.
Applicants will be required to make the products and knowledge gained through the fund openly available for the benefit of others. This is to help the development of the natural capital investment sector, and policy and regulation, including alignment with future government funding schemes.
Who can apply? Applications are accepted from not-for-profit organisations, including charities, community interest/benefit companies, environmental non-governmental organisations. Public bodies such as local councils, national park authorities and academic institutions are also eligible, as are businesses, including sole traders.
The fund is for activities in England. It may fund activities to prepare projects where benefits apply across borders with Wales or Scotland – this will be based on the environmental benefits to England.
Grant amount: The scheme has an overall budget of £10 million. It will award grants of between £10,000 and £100,000 per bid.
Application process: Applications forms can be downloaded from the programme website.
Deadline: Friday 16 February 2024.
Contact information: Email: NEIRF@environment-agency.gov.uk
Website: Natural Environment Investment Readiness Fund grant