Nature Investment Partnership
Working together to pilot a new approach to investing in natural capital
Our strategy for 2026 onwards
The NIP is a group of natural capital experts, facilitated by NatureScot, that provides knowledge, insight and connections to aid the emergence of Scottish natural capital markets. We have been working together since 2023 to try and bring new and innovative approaches to the emerging market.
NIP’s role is to help nurture Scottish nature restoration projects, such as those on the Nature Finance Exchange, and support those seeking to invest in or fund them. We will facilitate the deployment of ethical funding to the most impactful projects.
As the operating environment for Scottish natural capital evolves, so does the NIP. From 2026 onwards we are seeking to work with a range of natural capital practitioners, projects and initiatives to progress our strategic themes of:
1. Carbon streaming
Where buyers of carbon credits provide early project capital in return for high integrity carbon credits
2. Debt finance for nature projects
Designing and testing a new approach that unlocks finance for Scottish projects at scale
3. Project-level equity investments
Smaller, project-defined equity investments, without the need to aggregate projects or create a central fund
Key principles
Value for money
We want to demonstrate that private investment, if mobilised in the right way, can deliver strong value for the government and taxpayers. We will not increase grant funding to subsidise investor returns, or take on additional liabilities. Our goal is to use public funding to leverage private investment in a way that helps us to achieve more impact, tackling climate change and restoring nature in Scotland.
The carbon market
Where projects generate carbon credits, this will be done in a way that sets an example of best practice: working under the Peatland and Woodland Codes. We will only engage with buyers that have set, and are delivering on, science-based, ambitious net zero plans, which must prioritise reducing their own avoidable emissions first. See the FAQs for more detail.
Biodiversity and local landscapes
For woodland creation projects we encourage diverse, native species suited to the ecological conditions of the local landscape. We support woodland planting on marginal land that is not a priority for food production and does not already hold high ecological value.
Fair deals for landowners
We support projects designed to ensure fair, long term partnership agreements between land managers, communities and investors. Land managers should be properly rewarded for their work, and investors should share long term responsibilities, risks, liabilities and rewards equitably.
Community benefits
Nature restoration projects should provide significant environmental benefits for local communities – such as flood risk reduction and enhanced opportunities for recreation and access. We follow guidance from the Scottish Land Commission and best practice from other sectors. We require that projects benefit local communities and that communities have genuine agency over the project outcomes
Activities and outcomes since 2023
- Secured ‘in principle’ investor agreements for a Climate and Nature Fund of £100 million
- Developed and tested an equity fund model to share returns with investors, land managers and communities. Through testing we secured significant ‘in principle’ investor agreements for a major Climate and Nature Fund and greatly increased our and private sector understanding of Fund structuring and viability.
- Engaged with 20 over of Scotland’s largest businesses to explore their interest in buying carbon from Scottish nature restoration projects, including a roundtable event (February 2026), leading to a plan for a Scottish nature market accelerator.
- Modelled the nature finance opportunity over 18,000 hectares of woodland and peatland restoration on 17 land holdings across Scotland
- Explored investment opportunities in the Tweed catchment through the WHEP project; in the Atlantic Rainforest through FIRNS and in the Flow Country.
- Shared learning through the FIRNS community of practice
- Developed Heads of Terms and standard contracts for carbon purchase
- Developed an ethical framework to guide carbon trades
- Worked with the Scottish Land Commission to develop a robust process to engage communities and develop community benefit models
- Supported development of projects now seeking finance on the recently published Nature Finance Exchange
- Developed and tested a credit facility for Scottish carbon projects
