Skip to site menu Skip to page content

UK to set up Nature Restoration Fund while accelerating infrastructure projects

The fund aims to streamline developers' environmental obligations.

sathya January 23 2025

The UK government plans to include proposals in the Planning and Infrastructure Bill to expedite infrastructure projects while supporting large-scale nature recovery.

The changes aim to facilitate 150 infrastructure project decisions by the end of the government's term and reverse the decrease of natural habitats and their species.

The reforms aim to accelerate projects such as wind farms, railways, roads, 'gigafactories', and data centres.

Current rules require developers to secure mitigation or compensation for environmental harm, adding costs and delays.

The government will establish a Nature Restoration Fund to streamline these obligations, allowing developers to contribute to larger strategic interventions for nature.

A delivery body such as Natural England will oversee strategic actions to drive site and species recovery. This will reduce the burden of individual site assessments and enable development with a single payment. The fund will address issues, including pollution reduction and habitat protection.

A £70m ($85.7m) package was confirmed in the UK's latest Budget to support infrastructure delivery alongside nature recovery.

A new working paper outlines these proposals, with input from stakeholders such as clean power and housing developers, communities, and local authorities. This paper will guide the next policy development stage.

If legislated, these changes would reportedly offer a more efficient way to meet environmental obligations, pooling contributions for strategic interventions.

The proposals also align with the Labour government's Plan for Change to construct 1.5 million new homes, including a £47m boost to unlock stalled housing projects.

UK Deputy Prime Minister Angela Rayner said: “We have inherited a failing system that has seen vital infrastructure being held up year after year, while witnessing the devastating decline of our natural environment, precious wildlife, and protected species.

“That’s why we are taking a new approach to reversing this decline, striking the right balance so developers can meet their environmental obligations at pace while removing needless barriers to build the infrastructure that local communities are crying out for.”  

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close