The role of natural capital in the green economy [revived]

Environmental Audit Committee Open Inquiry
Opened: 13 Nov 2024 Parliament page
The Environmental Audit Committee in the 2024 Parliament has revived the predecessor Committee's inquiry into the current and potential future role of natural capital in the green economy, and the Government’s proposals to increase private investment in measures to support nature recovery. Read the call for evidence for more information … Read more
19 Recommendations
16 Conclusions
1 Report
2 Oral sessions
4 Letters
2 Events
Activity timeline 10 events
16 Oct
2025
Correspondence
4 Sep
2025
Correspondence
4 Sep
2025
Correspondence
22 Jul
2025
Report published
22 Jul
2025
Correspondence
7 May
2025
Report published
18 Dec
2024
Oral evidence
18 Dec
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
4 Dec
2024
Oral evidence
4 Dec
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 2 sessions
18 Dec 2024
View on parliament.uk
Panel 1
Dr Will Lockhart OBE · Department for Environment, Food and Rural Affairs Helen Edmundson · Department for Environment, Food and Rural Affairs Mary Creagh CBE MP · Department for Environment, Food and Rural Affairs
4 Dec 2024
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EAC meeting
Alan Carter · The Land Trust Dr Heather Plumpton · Green Alliance Helen Avery · Green Finance Institute Judicaelle Hammond · Country Land and Business Association Kate McGavin · National Wealth Fund Rt Hon Philip Dunne · Environmental Audit Select Committee
Title HC No. Published Items Response
1st Report – The role of natural capital in the UK's green econo… HC 501 7 May 2025 35 Responded
Recommendations & Conclusions
11 results
Clear
2 Conclusion Acknowledged
1st Report – The role of natural c…
Natural capital assets are an essential foundation for the UK and global economy.
Natural capital assets are an essential foundation of the UK and global economy, and we consider that a natural capital approach is vital if the overall value of nature to the UK is to be properly evaluated and developed. (Conclusion, Paragraph 34)
Government Response
The government acknowledges the conclusion by agreeing that the natural capital approach helps demonstrate nature's benefits and promotes sustainable economic growth by making nature's value more visible to businesses and investors.
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8 Recommendation Acknowledged
1st Report – The role of natural c…
Limited land availability constrains supply of natural capital schemes for nature restoration.
The supply of natural capital schemes to the market is inherently limited by the land space which is in practice available for nature restoration. There are constraints in the UK in delivering projects at the scale seemingly required for the … Read more
Government Response
The government stated its intent to work with the sector to develop a long-term plan for incentivising and funding nature recovery, including a Farming Roadmap with spatial prioritisation, taking Land Use Consultation responses into account.
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11 Conclusion Acknowledged
1st Report – The role of natural c…
Land use framework implementation requires scrutiny for food security alongside nature recovery
The Government’s projections for changes in land use in England by 2050, contained in its current consultation on a Land Use Framework, indicate a potentially substantial increase in the land area allocated to nature recovery, either alongside or instead of … Read more
Government Response
The government outlines its plan to work with farmers to co-create a long-term Farming Roadmap and develop a Land Use Framework to safeguard agricultural land and ensure food security.
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12 Recommendation Acknowledged
1st Report – The role of natural c…
Clarify how environmental land schemes complement nature restoration and ensure food security
We welcome the consultation on a Land Use Framework and look forward to its publication. We recommend that in the Framework Ministers clarify how environmental land management schemes and other nature funding for farmers ought to complement wider nature restoration … Read more
Government Response
The government states it will work with farmers to co-create a Farming Roadmap and develop a Land Use Framework, which will include approaches to incentivising nature recovery and safeguarding food production.
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20 Conclusion Acknowledged
1st Report – The role of natural c…
Regulatory clarity and confidence drive demand and investment in nature markets
Compliance, or an expectation of compliance with a future regulation, is a significant driver of demand for nature markets. Clarity and investor confidence in regulatory rules and functions is essential to maintaining stable demand and driving opportunities for investment. (Conclusion, … Read more
Government Response
The government reiterates its support for BNG policy, noting two recent consultations aimed at improving and extending its application to ensure development leaves biodiversity in a better state.
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21 Conclusion Acknowledged
1st Report – The role of natural c…
BNG compliance consistency is fundamental for market trust and transparent operation.
Regulatory requirements are typically seen as an obstacle to market efficiency. In the case of BNG, compliance consistency is fundamental to trust in the system and the fair and transparent operation of the market. (Conclusion, Paragraph 122) 58
Government Response
The government reaffirms its support for Biodiversity Net Gain (BNG) policy and details recent consultations on applying BNG to Nationally Significant Infrastructure Projects (NSIPs) from May 2026, and improving BNG for minor and brownfield developments. They highlight commitment to economic growth and halting nature decline.
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24 Conclusion Acknowledged
1st Report – The role of natural c…
Government lacks primary data on private investment for nature recovery targets.
For the Government to determine whether it has delivered on its target to deliver £1 billion of private investment into nature recovery annually by 2030, it must have primary data on relevant financial flows to provide a thorough understanding of … Read more
Government Response
The government acknowledges the need for data by stating it is engaging with external partners and the Office for National Statistics to establish a mechanism for monitoring economy-wide expenditure into nature's recovery. They are also collaborating with The Green Finance Institute's 'Hive' platform to gather data.
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25 Recommendation Acknowledged
1st Report – The role of natural c…
Provide report on current and projected private investment in nature recovery within 12 months.
The Government should urgently address the gaps in its data and understanding around the level of investment into nature recovery projects. We recommend that within 12 months of the date of publication of this report the Government provide a report … Read more
Government Response
The government acknowledges the need to address data gaps by engaging with external partners and the Office for National Statistics to establish a mechanism for monitoring economy-wide expenditure into nature's recovery. They also reference working with The Green Finance Institute, but do not explicitly commit to providing the recommended report to the House within 12 months.
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26 Conclusion Acknowledged
1st Report – The role of natural c…
Baseline data for natural capital improvement lacks sufficient granularity at farm level.
It is vital to develop a substantial baseline to measure natural capital improvement metrics against. This is already taking place in some respects (e.g. Natural Capital Ecosystem Assessment (NCEA) data for woodlands) but the current programmes arguably do not provide … Read more
Government Response
The government acknowledges the need for a robust baseline assessment methodology and states it is continuing to sponsor the British Standards Institution’s Nature Investment Standards Programme, which is producing a suite of standards, including the recently published Overarching Principles Standard and future market-specific standards. They confirm they are exploring options for baseline assessment through these standards.
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27 Recommendation Acknowledged
1st Report – The role of natural c…
Establish clear, robust baseline assessment methodology for measuring nature gains within 12 months.
The Government must continue to work with both public and private sector organisations, including the British Standards Institute and the International Sustainability Standards Board, so as to establish a clear and robust 59 baseline assessment methodology against which all gains … Read more
Government Response
The government acknowledges the need to establish a clear and robust baseline assessment methodology, stating it is continuing to sponsor the British Standards Institution’s Nature Investment Standards Programme and is exploring options for the methodology. They do not commit to establishing it within the recommended 12-month timeframe.
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28 Conclusion Acknowledged
1st Report – The role of natural c…
Low public accessibility and visibility of BNG financial flows and site registers.
The ability for nature credits to traced through clear and transparent means is key to ensuring market integrity. Although a register of BNG sites available for offsite investment has now been established, the public interface is still not fully accessible … Read more
Government Response
The government confirms the existence of a publicly available off-site BNG register and acknowledges that some on-site data exists but is not easily navigable in a single location. However, they state they currently have no plans to develop an on-site register for BNG.
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Government Response AI assessment · 35 of 19 classified
Accepted 15
Accepted in Part 2
Acknowledged 11
Deferred 5
Rejected 2
Total 19 recs + 16 conclusions
Correspondence 4 letters
16 Oct 2025 To committee Letter from the Chief Secretary to the Treasury relating to the environmental impacts of the Spending Review, dated 3 October 2025
Parliament page
4 Sep 2025 To committee Letter from the Under Secretary of State for Nature relating to the Role of Natural Capital in the Green Economy: Government Response, dated 27 August 2025
Parliament page
4 Sep 2025 From committee Letter to the Secretary of State for Environment, Food and Rural Affairs relating to The Role of Natural Capital in The Green Economy: Government response, 22 July 2025
Parliament page
22 Jul 2025 To committee Letter from the Chair to the Secretary of State for Environment, Food and Rural Affairs, regarding the Government's response to the Committee's report on the role of natural capital in the green economy, dated 22 July 2025
Parliament page