Peatland ACTION - Project Development Support Scheme

https://www.nature.scot/climate-change/nature-based-solutions/nature-based-solutions-practice/peatland-action/peatland-action-project-development-support-scheme

Incentivising large scale peatland restoration on Scotland

Project Development Support Scheme (PDSS) 26/27

Peatland ACTION is working to deliver the Scottish Government’s aim of putting 400,000ha of peatland ‘on the road to restoration’ by 2040. We recognise that to achieve the pace and scale required to do this we need to significantly increase the number of projects being developed each year. This will require existing agents to increase the number of projects they are developing to submit as applications for Peatland ACTION funding. In addition, we recognise the need to increase the number of agents within the industry to increase project development capacity across the Scotland. 

Recognising this challenge, in 2023 NatureScot Peatland ACTION launched the Project Development Support Scheme (PDSS). Through the provision of financial support, this pilot scheme was aimed at incentivising the development of projects. The pilot ended in May 2025 and supported the development of over 18,000 hectares of new projects.

Through this scheme we want to support the aims of Scotland’s recently published climate change plan and its supporting 5 year peatland plan.  This will be through a more targeted approach to supporting projects, delivering benefits such as prioritising water catchments,  crofting land, heavily degraded peat and land where wider benefits to nature can be demonstrated.  Applicants should develop projects that will deliver these benefits.

Following the success of the pilot, we have reopened the scheme and are accepting applications through new process (which includes applying online) as detailed below.

Key features of the Project Development Support scheme (PDSS)

NatureScot Peatland ACTION has evolved its approach, so the scheme better supports the wider project development industry, and in particular, new agents. The key features of the 26/27 scheme are: 

  1. The scheme will run for two years with an application round each year.
  2. Expression of interests open in April 2026 and April 2027.
  3. Experienced agents will need to develop a single or set of projects which will deliver a minimum 250 hectares.
  4. The scheme will support less experienced agents through its New Agent Support element. New agents will need to develop at least one application of at least ten hectares.
  5. The Expression of Interest (EoI) process will apply to all proposed projects.
  6. Each new applicant must complete the Competency Matrix.  Previous successful applicants do not have to complete this. Previous applicants who completed the ‘New Agent’ elements must complete a new Competency Matrix to demonstrate their increased competence.  
  7. The New Agent Support element includes opportunities for mentoring provided by NatureScot Peatland ACTION.
  8. The scheme will offer a single payment rate for project development of £75/ha.
  9. All agents will be allocated a NatureScot Peatland ACTION Project Officer to support, signpost and review progress.

Eligibility criteria

We have introduced a ‘New agent’ element to the scheme. On that basis there are different eligibility requirements depending on whether agents are ‘experienced’ or ‘new.’

Experienced agents

Experienced agents are defined as those who have previously been successful in securing Peatland ACTION funding for a project they developed. 

There is no set number of applications required to be eligible for the scheme, only that the combined scale of all submitted applications plan to put a minimum of 250 hectares of degraded peatland habitat on the road to recovery. 

They must demonstrate they have the competencies required to deliver this work within the scheme’s defined timescales. Experienced agents must achieve a minimum of Practitioner level or higher on the Competency Matrix.

New agents

To be considered as a new agent, applicants must not have previously developed a project which secured Peatland ACTION funding.

New agents will be required to develop a least one project (minimum 10 hectares) to be eligible for the scheme. Due to the support we will offer, as set out below, we are limiting the maximum number of projects a new agent can develop under the scheme to two. 

New agents must demonstrate they have the competencies required to deliver this work, within the scheme’s defined timescales. They must achieve a minimum of Foundation level or higher on the Competency Matrix.

We will support a maximum of ten new agents through the scheme each year. They will be eligible for mentoring provided by NatureScot Peatland ACTION’s mentoring scheme. Mentoring will be provided by the Crichton Carbon Centre, who form part of NatureScot Peatland ACTION’s Workforce Development team. They will also receive NatureScot Peatland ACTION Project Officer and Funding Officer support through the development phase as required. This will aim to bring new agents up to Practitioner level on the Competency Matrix and ensure projects are fully developed prior to seeking funding from NatureScot Peatland ACTION.

Scope of project development

Applicants to the scheme will take projects through the complete development process from initial landowner engagement to the submission of fully completed applications. Key outputs from this process will include:

  • Landowner(s) confirmation of commitment.
  • All surveys and tasks in the PDSS Project Development Checklist (Annex 1) against set milestones.
  • Finalised project design and peatland restoration plan.
  • Acquisition of necessary approvals e.g. SSSI consent, Prior Notification (Permitted Development Rights).
  • Protected species surveys with associated mitigation/species protection plans and licences where required.
  • Construction and Design Management documentation.
  • NatureScot Peatland ACTION funding application. 

How to apply

There are six stages to the application process:

  1. Log into your online NatureScot Grant Management account or register to create a new account
  2. Pre-application – Expression of Interest and competencies matrix submission
  3. Pre-application – Assessment of Expression of Interest and the competencies matrix
  4. Application – Submission of application
  5. Application – Assessment and completion of decision-making process
  6. Confirmation of outcome of decision making. 

1. Log into your NatureScot Grant Management Account

The Grant Management portal will be launched on 01 April 2026.

NatureScot Grant Management login

Log into your online NatureScot Grant Management account or register to create a new account.

Once you have logged into your online account you will be able to select the option to apply for funding to the PDSS.

2. Pre-application

All applicants must first complete an Expression of Interest for each proposed project. 

Submit your PDSS Expression of Interests online via your NatureScot Grant Management Account.

A NatureScot Peatland ACTION Project Officer will undertake a project scoping exercise for each EoI submitted. This will entail assessing all the information provided and specifically considering the risks to delivery and will identify any issues that need to be considered at the project development phase. If a project contains risks that NatureScot Peatland ACTION considers are at a level where we would not fund the project e.g. high risk of herbivore impacts, these projects will not be eligible to be included the application to the scheme. 

Applicants are encouraged to submit EoIs as soon as possible after the scheme opening to maximise the time available for the scoping exercise to the completed. 

Completed Expression of Interest and competency matrix forms must be submitted online no later than 4th May 2026. 

In addition to EoI, each new agent must submit a completed competency matrix against which each agent will self-assess their competency levels. Most agents will only need to submit this once; for practitioner level agents it will not be required if an eligible agent applies in years two and three of the scheme. However, previous applicants from the New Agent element will need to complete a new Competency Matrix to demonstrate their increased competence.

3. Pre-application - Assessment

On completion and submission of EoIs and the competency matrix, NatureScot Peatland ACTION Project Officers will undertake project scoping exercise for each EoI submitted and will assess each of the competency matrices. On completion, feedback will be provided to each applicant on:

  • Project eligibility – We will confirm which of the projects submitted as EoIs are eligible to be included in the application and any issues which need to be considered during their development.
  • Competency matrix – We will highlight any issues of concern and a provide an indication of the level of support NatureScot Peatland ACTION will provide through the next stages of project development.

We will provide this feedback to all applicants by 03 July. 2026

4. Application submission deadline

Following the receipt of your EoI feedback, applicants will be invited to complete an online application form via their NatureScot Grant Management account. 

Send your completed applications as soon as possible but no later than midnight on 20 July 2026. 

5. Application assessment and complete decision-making process

Applications will be assessed against the recommendations made at the EoI stage. The combined funding request of all applications will be assessed against the available budget. A panel will meet to consider the applications and will complete the decision-making process. If the fund is oversubscribed, the panel will seek to allocate funding to maximise the number of agents that receive awards.

6. Confirmation of outcome of decision-making process

Applicants will be informed of the outcome of their application from the 03 August 2026, and we will commence the issuing of grant awards.

Start-up webinar - 28 August 2025

A start-up webinar will be held for all successful Applicants to the scheme. This will cover the structure of the milestones and claims process for the scheme. It will also cover the NatureScot Peatland ACTION standards and our grant application process.  All standards will be provided in writing as an annex to the contract.

Contract delivery

If your applications are approved, we will issue you with a contract setting out the terms and conditions of funding. 

Applicants will be able to sub-contract elements of the project development work e.g. peat depth surveys, ecological surveys. However, procurement rules will apply so, at the point of claim, you will need to demonstrate that a fair and open competition has taken place. Our preference is the use of Public Contracts Scotland to demonstrate this.  

You will also need to ensure you can meet the requirements of the Scottish Government’s Fair Work First policy.

Each contract will be assigned a NatureScot Peatland ACTION Project Officer and a Funding Officer who will work to support you through each stage of the process. A series of milestones as detailed in the Project Development Checklist will ensure each part of the process is fully understood and delivered to NatureScot Peatland ACTION’s standards and minimise the need for amendments when each project is submitted as a funding application. 

Milestones

Summary of milestones

Milestone 1 – Baseline surveys

  • All projects being developed must reach this milestone by 31 January 2027. This will entail confirmation that all surveys as detailed in the PDSS 26/27Project Development Checklist have been completed (Annex 1). It will also require an update on the size of the total restoration area being developed.

Milestone 2 – Restoration design

  • All projects being developed must reach this milestone by 01 April 2027. Submission of Restoration Management Plans as detailed in the Project Development Checklist for review by a NatureScot Peatland ACTION officer. This step assesses the proposed design, and its alignment with the Peatland ACTION Programme standards. Feedback will be provided where adjustments to designs are proposed or where standards have not been met to allow for amendments to be made prior to the funding application being submitted.

Milestone 3 – Funding application

  • All projects being developed must submit their funding application by 30 September 2027. On submission a Funding Officer will complete an initial review of the application and identify gaps if any. Once each application is considered ‘complete’ final payment will be made. 

Payments

Payments will be made on the receipt, review and approval of claims following the achievement of each milestone. A progress report and claim form must be completed and submitted at each milestone. These documents are available on the online grant management portal. As projects reach each of the milestones, we will make payments in accordance with the schedule as set out in your contract. 

Payments will be issued directly to Applicant to the scheme.

The proportion of payments will be front loaded to reflect the start-up costs associated with surveys as per the table below. 

Payment schedule

See table below for schedule.

Payment schedule
Milestones and paymentsAugust 2026 – January 2027February – March 2027April – September 2027
MilestonesMilestone 1Milestone 2Milestone 3
PaymentsMilestone 1 (40%)Payment 2 (40%)Payment 3 (20%)
  • Payments will be made as per a payment schedule set out in each grant offer. It will be linked to the delivery of milestones and agreed development hectares across the set of applications, if there are more than one. In the example above Payment 2 will only be made once all projects in the set have reached Milestone 2.
  • Payment will be based on the actual number of hectares confirmed by the spatial data in the submitted Milestone 2 and Milestone 3 the Restoration Application.
  • The number of hectares to be delivered, is the maximum number covered within the Funding Offer. If you deliver more, we will not fund the additional hectares.
  • In the event that a project is not able to proceed or not able to proceed at the expected number of hectares, we will consider the addition of further projects to the list to maintain the total number of hectares. Final payment (Payment 3) will only be made once Milestone 3 has been reached i.e. all funding applications in the set have been received and have been confirmed as reaching the required standard. If the total number of hectares to be delivered as completed Restoration Applications falls below the expected number and the number upon which payments have been made, Milestone payment 3 will be reduced accordingly.
  • Should the total value in payments 1 to 3 be more than is eligible to be paid based on the number of hectares delivered as completed Restoration Applications, this will be reconciled in Payment 3.  We reserve the right to reclaim overpayments.
  • For more information about NatureScot Peatland ACTION funding process and our restoration application visit NatureScot's Peatland ACTION webpage on 'How to apply'. 

Payment rates

PDSS 26/27 will pay a single rate of £75/hectare. For experienced agents, if delivery falls below 100 hectares then we will adjust the payment to £50/hectare.

All PDSS 2026/27 projects being developed must be for submission to the NatureScot Peatland ACTION 30 September 2027 application deadline. 

Annex 1 – PDSS 26/27 Project development checklist

Introduction

The following information must be completed at given milestones to fulfil the requirements of the PDSS 26/27. 

A Project development checklist must be completed at given milestones to fulfil the requirements of the PDSS 26/27. This should be done via your online Grant Management account. 

You may wish to print the milestone check list tables below so that you can track your progress and that you have achieved each of the tasks to make your claim. This check list is also available to download from the grant management portal.

Milestone 1 – baseline surveys

Milestone 1 – baseline surveys
Baseline surveys Tick
Peat depth survey
  1. In accordance with version 2.1 of the Peatland Code protocol
  2. Peat depths must be recorded to the nearest cm and surveyors must use a peat probe with sufficient length of rods to measure the full depth of the peat
  3. Photos are required from roughly 25% of points, capturing any representative features where possible
  4. Minimise file sizes of photos
  5. Note any signs of burning or protected species
  6. A minimum of 50% of the peat depths recorded on the 100 x 100 m grid within all Assessment Units, must be greater than or equal to 30cm
  7. The survey data must be recorded using our peat depth and peatland condition recording form (Excel template) and displayed on a map at the appropriate scale
 

Peat condition survey

 

  1. Identify all drainage/erosion features, i.e. drains, haggs, gullies, bare peat pans, surface micro-erosion etc
  2. Assessment of average depth and width across a representative sample of drains and gullies
  3. Assess peat depths at the base of drains and gullies to inform appropriate specification of dam or bund
  4. On extensive areas of bare peat, record soil pH in-situ using soil pH meter / pH testing kit
  5. Produce maps and provide spatial data using our GIS template in accordance with guidance.
 

Baseline hydrological function

 

  1. Identify all hydrological units
  2. Provide hydrological assessment maps showing all drainage and flow pathways (including direction of flow)
  3. Clearly mark all man-made channels which appear on 1:50,000 scale OS maps (for SEPA CAR licensing purposes).
  4. Provide data in GIS format.
 
Statutory designated sites
  1. Details of any SSSI consent(s) and/or HRA from NatureScot to allow proposed works to proceed
 

Protected Species

 

  1. survey for and establish the presence of any protected species
  2. Outline potential permissions and mitigations that may be required for restoration.
 
Herbivore Impact Assessment (HIA)
  1. Complete an HIA within project area/s
  2. Follow our herbivore impact guidance to support your application  
 

Peat Slide Risk Assessment (PSRA) 

 

  1. Record / geo-reference any signs of peat instability noted in the field, i.e. gully sidewall collapse, collapsed peat pipes, slumping along a watercourse, tension crack, tears, compression ridges/bulging, ‘ribbons’ of vegetated peat separated by tears, cracks filled with basal peat slurry, exposed mineral substrates with stranded rafts, blocks of material downslope of the scar
  2. Restoration design must take account of any potential effects and/or impacts of peat instability on proposed restoration activities
  3. Carry out an assessment to determine the underlying geology / mineral layer composition (e.g. clay, iron pan etc.) across the proposed restoration area(s).
 

Drinking water protection Area (DWPA) 

 

  1. Detail associated requirements for working within DWPAs, including development of appropriate mitigation e.g. Pollution Prevention Control and/or Diffuse Pollution & Surface Water Run-off Control Plans.
 

Archaeology and the historic environment

 

  1. Detail features of historical and/or archaeological interest that could be affected by proposed works, including restoration areas and access corridors
  2. Much of Scotland's historic environment records can be accessed online as interactive maps or dataset downloads  
  3. Additional records exist within local authorities.  Contact details for all of Scotland's Local Authority archaeologists are available online.
 

Utilities

 

  1. Detail any utilities (e.g. gas pipelines, underground power cables) affecting the proposed restoration areas and site access
  2. Free to use websites such as Linesearch before U dig can be used for this purpose.
 

Scrub & Woodland

 

  1. Assess and map extent scrub/woodland and regeneration/self-seeding potential across the project area
  2. Provide a scrub control/woodland removal plan.
 

Milestone 2 – Restoration design

Milestone 2 – Restoration design
Restoration design Tick

Restoration Management Plan

 

  1. Program of work, including prioritisation and multi-year phasing of projects
  2. Restoration specification must include the following:
    1. total length of drains and/or gullies to be blocked
    2. total number and type of dams/bunds required (e.g. peat / plastic / timber / mineral / stone / composite)
    3. total area of bare peat restoration
    4. total length and average height of haggs/cuttings to be re-profiled
    5. total length and type of bunds required etc.
  3. Produce restoration maps and provide spatial data using the appropriate GIS template
  4. Identify possible donor sites for materials suggested in restoration specification such as heather mulch, stone for stone dams or turf availability where appropriate.
 
Design & Access
  1. Assessment of ground suitability and logistics for machine access, including watercourse crossings, gate widths, and particularly sensitive habitats and/or inaccessible areas.
 

Milestone 3 – Application

Milestone 3 – Application
Application Tick
Statement of Requirements (SoR)
  1. Use the Peatland ACTION Statement of Requirements template
  2. Detail the following:
    1. proposed techniques, project specification, and working methods and controls
    2. details on specific operations / techniques (including innovative techniques) / materials required to help deliver restoration
    3. machine specification including the use of specialist low ground pressure machinery (machine type / size of undercarriage / bucket size / machine weight (Tonnes) / machine width (metres) / track pad width (mm) / average ground pressure (psi)), and any potential requirement for use of bog mats
    4. details on any Health and Safety considerations for contractors
  3. Refer to Peatland ACTION Technical Compendium.
 

Each application must include the following

 

  1. Quality assured restoration plan
  2. Full cost breakdown based on a completed tender exercise conducted on Public Contracts Scotland
  3. Prior notification approval
  4. Consent for designated sites
  5. Consent for protected species mitigations
  6. A pre-application ecological assessment (including sightings and nests found or suspected from walk over surveys)
  7. Completion of all documentation relating to The Construction (Design and Management) Regulations (2015
 

 

 

Annex 2 – Assessing herbivore impacts for NatureScot Peatland ACTION projects

Grazing pressures across a restoration area need to be within sustainable levels to aid successful restoration. Find out how this is assessed and what applicants to the Peatland ACTION Fund need to do in our Guidance for assessing herbivore impact for Peatland ACTION applications

Annex 3 – Species protection for NatureScot Peatland ACTION projects

Species protection is a legal requirement of all developments and activities in Scotland. Applicants are responsible for survey work (pre-application surveys, pre-operational surveys and operations surveys). Refer to our Guidance on Species Surveys and Templates for protected species for more information.

Note NatureScot Peatland ACTION made changes to the way we support species surveys for all applications after 1st May 2025.

 

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