Defra: A review of 145 UK projects and initiatives involving private sector investment to improve natural capital has just been published by Defra. The aim was to provide a preliminary oversight of the current state of private sector investment in natural capital and ideas on how this can be scaled up. DEFRA required a rapid review of expenditure on natural capital projects in the UK by the private sector where a return on investment was provided (investment in natural capital). With limited time available the review was intended to be broad and shallow. The study outputs were intended to help inform work which supports the scale up of private sector investment in natural capital. Stakeholder consultation and involvement was considered the best means of undertaking the study. The networks of DEFRA and Ricardo Energy & Environment were utilised to approach key stakeholders in the natural capital space. These stakeholders provided details of their own projects, or contact details for other relevant stakeholders. Information was collected using a data collection template which captured key project information. Engaged participants were also asked about the barriers and enablers to private investment in natural capital in the UK. In the process of undertaking the stakeholder engagement it became apparent that the condition that expenditure must provide a financial return on investment was too restrictive as very few projects reported on their expenditure in this way. This could be due to a number of reasons: the primary goal of expenditure on natural capital is not to provide ‘private’ returns; it is difficult to prove a causality (from natural capital project to improved financial standing); and commercial sensitivities prevent reporting of returns. Therefore the condition was dropped and focused on expenditure on natural capital projects by the private sector. Click here to read more.