Tax breaks and green loans needed from Chancellor to tackle nature crisis, new research reveals
Tax breaks and green loans needed from Chancellor to tackle nature crisis, new research reveals
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45% of sustainability leaders cite a lack of resources and funding (46%) as the biggest challenges to tackle nature loss
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65% want to see the Government introduce incentives for biodiversity friendly business practices
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36% say they don’t have a budget allocated to tackle nature loss
Sustainability leaders within major UK businesses are calling for tax incentives, government subsidies and ‘nature-based loans’ to turbocharge their efforts to tackle the nation’s biodiversity crisis, according to new research* by major construction and civil engineering firm BAM UK & Ireland.
Nature is critical to the UK economy, with over half (55%) of the world’s GDP moderately or highly reliant on it**, especially in supply chains dependent on raw materials. The UK is one of the world's most nature-depleted countries with one in six species at risk of extinction. Almost none of the UK’s woodlands and sea floor has been found to be in good condition***.
Government support needed
Some 45% of sustainability leaders cite a lack of resources and 46% say funding as the biggest challenges to tackling nature loss. According to BAM’s research, which was conducted by YouGov amongst large companies and public bodies, 65% say the new Labour Government can help them improve nature recovery by offering financial incentives to encourage biodiversity-friendly practices and a further 55% are calling for grants or loans.
With Rachel Reeves’ first Budget taking place on 30 October, the vast majority of businesses and public sector organisations have said they are struggling to divert resources to the issue. Some 40% either don’t have a specific budget allocated to tackle nature loss or state their budgets will make no difference anyway.
Financial and resourcing concerns are highlighted in the study as the two biggest challenges to delivering successful biodiversity strategies.
Gaelle Bardsley, Biodiversity Lead at BAM, said:
“The UK will not successfully reverse nature loss if it does not invest in change. The biodiversity crisis is a critical part of the climate change problem and we must start taking it seriously.
“Rachel Reeves has an opportunity to kick-start real change in the business community by offering greater financial incentives to businesses.
“At BAM we’ve committed to halting and reversing negative impacts on nature and we’re on a mission to assess biodiversity risks and opportunities across our entire value chain. But we recognise that change doesn’t happen overnight, and that resources and funding are critical to driving that change across sectors.”
John Wilkinson, Chief Operating Officer at BAM UK & Ireland, added:
“Sustainability departments in larger businesses are calling for a range of financial solutions to help identify ways to make a difference. With so few funding routes available, sustainability experts are now calling for Government intervention to help kick-start an urgent change.
“The UK has been severely impacted by biodiversity loss over the last 50 years. The construction industry must accept that we have had a role to play in that nature depletion. We must also accept the responsibility of reversing that trend. We have an important role to play in making biodiversity a strategic priority and ensuring that legislation designed to address biodiversity loss continues to be applied consistently.”
Existing UK funding to tackle nature loss is relatively limited
The Environment Act 2021 has come into force in several stages, over the last years including requirement for new developments in England to demonstrate that they will deliver 10% biodiversity net gain (BNG) in order to secure planning permission. The research indicates that many businesses' lack the tools and resources they need to drive forward positive outcomes and may struggle to keep up with changes to future standards and regulatory obligations as a result.
The previous Government announced £15m to accelerate nature recovery across Protected Landscapes; and £750,000 of funding to protect rainforest habitats across the Southwest and Cumbria***. It also committed to protecting 30 per cent of land and sea for nature by 2030 at the G7 Ministerial meeting on Climate, Energy and Environment in Italy this year.
Read more about our research findings here.
** https://www3.weforum.org/docs/WEF_New_Nature_Economy_Report_2020.pdf .
*** 2023 State of Nature report - State of Nature 2023 - report on the UK’s current biodiversity
