Department for Environment, Food and Rural Affairs (DEFRA)

About the fund

Big Nature Impact Fund is a blended finance vehicle targeting landscape restoration across England through the monetization of verified carbon and biodiversity credits. The fund aims to raise up to £120 million to finance high-integrity ecosystem restoration activities, including woodland and peatland recovery, working in partnership with landowners, project developers, and local communities. Its investment thesis prioritizes measurable environmental outcomes and climate resilience within ecologically appropriate locations, generating long-term returns through natural asset conservation rather than traditional land appreciation mechanisms. The fund's capital structure includes £30 million in first loss capital from the UK Department for Environmental Food and Rural Affairs, which receives distributions only after private investors achieve a 7 percent preferred return, thereby de-risking the investment for institutional and foundation investors. This subordinated public capital approach is designed to attract institutional capital to nature-based solutions while ensuring alignment with environmental integrity standards.