A Natural Capital investment company for accelerating delivery of habitat banks
Surrey Wildlife Trust is developing a Natural Capital Investment Company to attract private investment for habitat restoration by selling biodiversity units. Using land and habitat banking, the project will create 403 units across three sites, with initial sales funding further restoration. The model spreads financial risk, enables scaling, and could restore 500-700ha over ten years while exploring additional ecosystem service markets.
This project is one of 24 case studies published in 2024, alongside a report evaluating the process, impact and value for money of NEIRF Rounds 1 and 2.
Access full case studyThe funding will support design of the financial, governance and contracting structure of the Natural Capital Investment Company (NCIC); structure investment for pilot habitat bank sites, build business opportunities for other product offerings and partnerships, and enable further site pipeline development and assessment.
This creation of a Natural Capital Investment Company (NCIC) will support the development, financing and delivery of habitat creation and restoration projects that benefit nature and people, creating a pipeline of biodiversity credits for the development sector.
The project will showcase new ways of working between a LEP, LPAs and an eNGO, providing private sector partnership opportunities and consequently, provide a blueprint delivery model for other Wildlife Trusts and other eNGOs wishing to create an investment-ready habitat restoration pipeline.
Project Aim
The NCIC will drive a new way of achieving systemic investment in natural assets and mobilise local delivery of high quality habitat restoration projects in strategic locations to deliver local Nature Recovery Network strategies and the goals of the 25 Year Environment Plan.
Project partners
Funding model
A dedicated NCIC will attract private investment based on emerging nature-based income opportunities to enable the restoration of nature at a landscape level. The project will generate revenues through the generation and sale of Biodiversity Units to deliver BNG. Habitats will generate BNG credits which will be sold to developers requiring BNG offsets and used to repay investors.
The NCIC will have capacity to capitalise on emerging complimentary income streams (e.g. carbon and Natural Flood Management) which it will develop once a core BNG product is operational.
Future Investment Potential
The pilot sites identified to date have the potential to generate 400 biodiversity units. These sites will be restored to support biodiverse wetlands, coastal habitats, heathland and mires, saltmarshes and native woodlands.
The project will be contributing to the following 25 YEP outcomes:
- Thriving plants and wildlife: through the creation and restoration of habitats.
- Protection from and mitigation of environmental hazards: through the mitigation of flood risk from restoration of floodplain habitats.
- Mitigation of and adaptation to climate change: through the opportunities to mitigate climate change (e.g., through carbon storage and sequestration), and support adaptation to climate change (e.g., through creating more connected landscapes for species & habitats to adapt).
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