A new framework has been launched to encourage responsible private investment in Scotland's natural capital markets. Minister for Employment and Investment, Tom Arthur, unveiled the Scotland's Natural Capital Market Framework at the Nature Finance UK 2024 conference.

The framework offers guidance to investors, land managers, and communities on attracting private investment into peatlands, woodlands, and nature restoration projects. It emphasises maintaining the high standards set by the Woodland Carbon Code and Peatland Code.

Aligned with Scotland's 'National Strategy for Economic Transformation', the framework will contribute to two key government priorities: driving sustainable economic growth and addressing the climate and nature crises.

Research released this week highlights the significant economic value of Scotland's natural assets, estimating a contribution of over £40 billion to the economy and supporting approximately 260,000 jobs.

Mr Arthur said: "This framework outlines the steps we will take to attract greater responsible private investment into high-integrity natural capital projects. Scotland's breathtaking landscapes, rich biodiversity, and abundant natural resources are much more than a source of pride – they are the foundation of our future prosperity with investment being key to economic growth.

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"Our peatlands, forests, rivers, and coastlines are valued at £230 billion, providing essential services like clean air, fresh water, carbon sequestration, and resilience to the impact of climate change. We have committed to restoring 250,000 hectares of degraded peatlands, halting biodiversity loss and establishing tens of thousands of hectares of new woodland in the next five years, generating good, green jobs and skills training – mostly in rural communities.

"We take this responsibility seriously - but it is abundantly clear, that to meet our targets for cutting emissions, we need private investors to share the load. This framework gives us a guide to attracting responsible investment partners to join our work in restoring and enhancing our natural assets and the opportunities for our communities and our economy."

Jo Pike, Chief Executive, Scottish Wildlife Trust, said: "A healthy natural environment is our most precious asset. In the face of the nature and climate emergency it's vital to focus on the future we want to create – for nature and communities.

"It is heartening to see a positive direction of travel, along with some of the first steps on the journey, set out in the new Framework. Over time, this will no doubt evolve, as an ever-growing number of people realise that we all have a stake in its success."

Emma Cooper Head of Land Rights & Responsibilities, Scottish Land Commission, said:

"The Scottish Land Commission welcomes the publication of the Natural Capital Market Framework which provides clarity on Government expectations for high-integrity, values-led private investment in Scotland's natural capital. This framework not only sets out the actions stakeholders can take to ensure responsible investment but also emphasises the importance of community benefits as essential to a fair and functional nature market.

"Scotland is setting a new standard in the UK by clearly defining the role of community benefits in natural capital investments."