675. As set out in Part 1, achieving net zero and recovering nature are challenges that are inextricably linked, and which we must address if we are to achieve sustained, and sustainable, economic growth. Consideration of impacts on nature and the environment must flow through all net zero transition policymaking, to avoid unintended consequences on natural systems (for example pressure on water availability from hydrogen production or air quality impacts of bioenergy production).
676. Nature-based solutions currently in the Government's net zero plans include woodland creation and peatland restoration, but the Review heard that this approach could be broadened.
677. Natural ecosystems and ecosystems services are now being recognised for the intrinsic and economic value they have:
"For too long, natural capital has been off the balance sheet and not valued in policy and the market, even though - as farmers know - the character and quality of soil, water and nature on a farm is essential to run a viable rural business. Recognising and paying for natural capital, even though it demands a change in how land is used, opens up opportunities for new business models and new sources of income for the land-based economy." - Green Alliance493
678. The ONS has estimated the stock of the aspects of UK natural capital that could be valued to be worth £1.2 trillion, with the value of carbon sequestration by natural systems to be £2.1 billion.494
679. Government should look to maximise the contribution of nature-based solutions given the multiple benefits these can bring for climate, biodiversity, water, protection from adverse weather impacts and job creation.
680. The Dasgupta Review also warns of the risk to ecosystems that are approaching tipping points, after which recovery will be far more costly:
"Many ecosystems, from tropical forests to coral reefs, have already been degraded beyond repair, or are at imminent risk of 'tipping points'. These tipping points could have catastrophic consequences for our economies and well-being; and it is costly and difficult, if not impossible, to coax an ecosystem back to health once it has tipped into a new state". - Dasgupta Review495
681. The Review has heard that the Government's ambition and delivery in this space could be far greater:
"There is a significant opportunity to stimulate and facilitate a mass-scale up of high-quality nature-based solutions as a highly cost-effective part of the pathway to achieving-and sustaining-net zero. Currently the scale of uptake is nowhere near where it needs to be in order for the UK to reach net zero (including for peatland restoration, high quality woodland creation, and saltmarsh creation). The low level of uptake needs to be addressed through a vast increase indirect public investment in nature's recovery, and greater stimulation of private markets." - The Wildlife Trusts496
682. Action must be taken quickly, given the long lead time between habitat creation and restoration efforts and seeing the benefits in terms of carbon storage, if nature-based solutions are to play a significant role in delivering net zero by 2050.
683. In particular, for peatland, a more ambitious programme of implementation is required:
"Not only are the UK's peatlands emitting around 20 MtCO2e (4% of UK emissions) per year rather than acting as a sink, they are also at high risk of complete collapse in the hotter, drier conditions we are expecting with further climate change; which would trigger an enormous further loss of carbon to the atmosphere" - The Wildlife Trusts497
Deliver accurate monitoring of carbon across broader range of ecosystems, with a view to bringing more habitats into the inventory to drive habitat creation and restoration efforts. |
684. Government should build on existing work from Natural England reviewing carbon storage and sequestration by natural habitats in England498 to increase the evidence base and work with international partners to include a wider range of ecosystems in greenhouse gas inventory reporting. At present, coastal and marine habitats are not covered by this reporting, including saltmarsh and mudflats, seagrass, seabed sediments and others. Deepening our understanding and bringing some of these ecosystems into carbon reporting as soon as possible will drive management efforts and can slow depletion of these habitats.
685. For the land-based habitats, how this plays out in the wider land use context should be managed through the Land Use Framework to minimise disruption and achieve multiple outcomes including maintaining food supply.
In line with wider thinking on voluntary carbon and ecosystem markets, ensure a pipeline of investible nature-based solutions projects is available |
686. Pillar 6 sets out thinking around voluntary carbon and ecosystem markets. The Review heard that industry is keen to invest in and deliver nature-based solutions for climate mitigation (like afforestation projects):
"The capacity of nature-based solutions to offer climate mitigation, climate adaptation, nature recovery, environmental services, health and economic benefits from one investment renders them formidably cost-effective." - Wildlife and Countryside Link499
687. Government and its delivery bodies must ensure there is a clear pipeline of investible projects, but also manage the risk of greenwashing. This is where projects do not achieve the desired outcome with sufficient monitoring and verification, or risk stymying this investment.
688. In conjunction with the Land Use Framework discussed above, and the need for robust standards as set out in Pillar 6, government should review its processes to ensure that there are no unnecessary barriers impeding nature-based solutions projects that align with wider net zero, nature and growth goals.