A new report by the influential Broadway Initiative, The State of UK Nature Markets 2023, finds ‘some progress’ has been made towards the goals outlined in the ground-breaking Financing Nature Recovery UK Report published in July 2022, but the most significant opportunities lie ahead. The report called for actions including a plan for nature market governance, policy stimulation of demand for nature services, and building capacity to deliver nature-based projects.

The report is the first annual review of progress made against the Financing Nature Recovery (FNR) roadmap and recommendations published in June 2022. The FNR Report was described as reflecting an ‘emerging consensus from the farming, business, finance and environment sectors across the country as to the actions needed to support development of these markets’ In the Government’s recently published Nature Markets Framework.

The review was undertaken by the Broadway Initiative with input from experts drawn from across the environmental, business, public and land-based sectors and independently reviewed the actions taken since the publication of the FNR report.

The report highlights three important developments: the British Standards Institution’s Nature Investments Standards Programme; the Nature Markets Framework for England; and the Scottish Government’s Interim Principles for Responsible Investment in Natural Capital. However, the report also found ‘limited progress in translating strategic goals and policy ambition into specific actions to facilitate market development,’ a situation exacerbated by the recent policy uncertainty over Nutrient Neutrality, and recommends rapid action is needed on demand drivers and governance to ensure impact and integrity.