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The UK Nature Impact Fund is a £120M blended finance platform managed by Finance Earth, backed by £30M Defra first-loss capital, investing in nature recovery projects across woodland, peatland, and biodiversity net gain.
Project finance and business growth
The UK Nature Impact Fund ('UK Nature') is a private markets impact fund investing in nature restoration across the United Kingdom. The fund provides project finance for woodland creation, peatland restoration, and biodiversity habitat creation, as well as expansion capital for businesses operating across the nature restoration supply chain. Revenue is generated primarily from the sale of carbon credits (under the Woodland Carbon Code and Peatland Code) and biodiversity units (under England's Biodiversity Net Gain legislation), alongside other income streams.
UK Nature is managed by Finance Earth, an employee-owned social enterprise and certified B Corp specialising in environmental impact investment. The fund uses a blended finance structure: the UK Government's Department for Environment, Food and Rural Affairs (Defra) has committed £30 million as a "first loss" cornerstone investment, meaning government capital absorbs initial losses before private investors' capital is affected. This is designed to reduce risk for institutional investors entering a relatively new asset class. The fund is targeting £120 million in total and is designed for professional investors including insurance companies, pension funds, family offices, and foundations. Finance Earth has committed up to £2 million of its own capital.
UK Nature was originally co-designed with Federated Hermes, but following Federated Hermes' withdrawal as joint venture partner in late 2024, Finance Earth relaunched the fund as sole manager in June 2025 with Defra reconfirming its £30 million investment.
Mission
UK Nature exists to close the gap between what the UK spends on nature recovery and what it needs to spend. The Green Finance Institute estimated in 2021 that the UK faces a £56 billion funding gap this decade to achieve its environmental targets - including climate change mitigation, adaptation, and biodiversity loss reversal. The UK is one of the most nature-depleted countries in the world, and the fund aims to mobilise private capital alongside public investment to support recovery at scale.
Goals
Values
UK Nature invests only in established nature markets with trusted, independently administered frameworks endorsed by the UK Government and devolved administrations. The fund has adopted the Nature Markets Principles - voluntary principles for responsible participation in nature markets, co-developed by the UK's leading environmental NGOs in collaboration with Finance Earth. The fund's integrity is further supported by a Science and Impact Advisory Panel (SIAP), comprising scientists and academics in the natural and social sciences, who provide independent advice on investment opportunities and emerging science.
The concept for a national nature impact fund originated in the UK Government's 25 Year Environment Plan. Defra commissioned Finance Earth and Vivid Economics to identify opportunities for a UK Natural Capital Impact Fund, and in November 2022 appointed Federated Hermes and Finance Earth as preferred fund managers following a competitive procurement. Defra committed £30 million as seed capital, with governance structured through a Limited Partnership Agreement.
The fund was co-designed over subsequent years, with Finance Earth leading on natural capital investment strategy and project pipeline development. In late 2024, Federated Hermes withdrew as joint venture partner. Finance Earth relaunched the fund in June 2025 as sole manager, with Defra reconfirming its £30 million investment. The relaunch was announced at a Green Finance Roundtable co-hosted with the Secretary of State for Defra, Steve Reed, and the Minister for Nature, Mary Creagh.
The initial fund - the Big Nature Impact Fund - is focused on England. Future funds targeting Wales, Scotland, and Northern Ireland are planned following the successful close of the initial vehicle. UK Nature is intended as a platform, with the Big Nature Impact Fund as its first strategy.
UK Nature is managed by Finance Earth, which was founded in 2016 and is headquartered in London. Finance Earth's team has structured over £1 billion in financing mechanisms across more than 35 countries. The firm is authorised and regulated by the Financial Conduct Authority (Registration No. 831569).
Robert Easton - Investment Committee Chair & Non-Executive Chair of Board, Finance Earth
Richard Speak - Co-Founder & Managing Director, Finance Earth; UK Nature Lead and Investment Committee Member
James Mansfield - Co-Founder & Managing Director, Finance Earth; Investment Committee Member
Richard Fitton - Investment Director
The investment team also includes Craig Humphrey (Finance, Risk and Compliance Director), Chris Bell (Head of Risk and Compliance), and several investment analysts covering quantitative modelling, impact measurement, and project assessment.
UK Nature invests in two categories:
Nature restoration projects: The fund provides turnkey project finance for the full lifecycle of nature-based solutions - from project development and restoration through to long-term maintenance. Projects generate income through the sale of ecosystem services, primarily carbon credits and biodiversity units. The fund prioritises leasehold, joint venture, and long-term contractual arrangements with existing landowners over land acquisition, providing recurring income opportunities for landowners and land managers. The fund can purchase land where it passes a social impact screening process.
Nature-positive businesses: The fund provides patient expansion capital to revenue-generating UK-based SMEs operating across the nature restoration supply chain. Target businesses include nature restoration contractors, project developers, brokers and intermediaries, monitoring and verification (MRV) companies, tree and plant nurseries, and nature technology providers.
The initial fund (the Big Nature Impact Fund) is focused exclusively on England. The broader UK Nature platform is designed to extend across all four UK nations, with separate funds for Wales, Scotland, and Northern Ireland planned after the England fund closes. Finance Earth itself operates across the UK and internationally, with advisory work spanning more than 35 countries.
UK Nature focuses on established nature markets with independently verified standards:
UK Nature only invests in projects and businesses operating within established, UK Government-endorsed nature market frameworks. For nature restoration projects, the fund requires registration under the relevant code or standard (Woodland Carbon Code, Peatland Code, or the BNG Statutory Biodiversity Metric developed by Defra). The fund finances across the full project lifecycle, including development, restoration, and long-term maintenance (typically 30+ year commitments for woodland and peatland projects).
For business investments, target companies must be revenue-generating SMEs with established business models operating in the UK's nature restoration sector. The fund provides patient expansion capital alongside board representation and access to its commercial network.
The fund also operates the UK Nature Accelerator - a Defra-funded technical assistance programme that helps nature-based projects reach investment readiness. The Accelerator is delivered by Finance Earth's advisory team and is now in its third round of applications.
Defra has committed £30 million as a "first loss" cornerstone investment. This blended finance structure means that Defra's capital is subordinated - it absorbs losses first before private investors' capital is affected. The fund is targeting £120 million in total from professional investors. Finance Earth has committed up to £2 million of its own capital. Target investors include insurance companies, family offices, pension funds, and foundations. The fund is structured as a Limited Partnership.
UK Nature is a private markets impact fund. It is not publicly listed and is designed for professional investors only. The fund was relaunched in June 2025 and was targeting a first close before the end of 2025 at the time of the relaunch announcement.
The fund measures and reports on five core impact indicators: hectares of woodlands created, hectares of peatlands restored, tonnes of CO2e sequestered or abated, number of green jobs created or supported, and hectares of green space made accessible to the public.
The UK Government's environmental targets for net zero by 2050 include 1.5 million hectares of new forest cover, 0.7-1.1 million hectares of restored peatland, and 0.5 million hectares of new or restored biodiverse habitat. UK Nature is designed to contribute to these targets by channelling private capital into nature recovery projects.
1. What does the UK Nature Impact Fund invest in?
UK Nature invests in nature restoration projects across England (with plans to expand UK-wide), including woodland creation, peatland restoration, and biodiversity habitat creation. It also invests in UK businesses operating across the nature restoration supply chain.
2. Who manages the fund?
The fund is managed by Finance Earth, an employee-owned social enterprise and certified B Corp specialising in environmental impact investment. Finance Earth is authorised and regulated by the Financial Conduct Authority.
3. What is the role of the UK Government?
Defra has committed £30 million as a "first loss" cornerstone investment, meaning government capital absorbs initial losses before private investors are affected. This blended finance structure is designed to reduce risk and help attract institutional capital into nature markets.
4. What stage is the fund at?
The fund was relaunched in June 2025 with Finance Earth as sole manager, following the withdrawal of joint venture partner Federated Hermes in late 2024. As of the June 2025 relaunch, the fund was targeting a first close before the end of 2025 and a total raise of £120 million.
5. How does the fund generate returns?
Revenue comes primarily from the sale of verified carbon credits (under the Woodland Carbon Code and Peatland Code) and biodiversity units (under Biodiversity Net Gain legislation) to corporates and property developers. Business investments generate returns through equity growth in nature-positive SMEs.
Visit the UK Nature Impact Fund website for more information: UK Nature Impact Fund website.
Learn more about Finance Earth: Finance Earth website.
Explore more UK opportunities for greentech investment at Adopter's Greentech Investors Map.
