Frequently Asked Questions
What is a natural capital investment?
A natural capital investment generates value from the environmental services land provides, rather than from traditional agricultural income. Typical examples include carbon sequestration, Biodiversity Net Gain, water and nutrient management, and habitat restoration. These markets are evolving quickly and need careful structuring to make sure a project is commercially viable as well as environmentally worthwhile.
Which natural capital markets can I invest in?
The most active routes at present are woodland carbon, peatland restoration, Biodiversity Net Gain and nutrient mitigation, alongside longer-term environmental land management agreements. Which of these fits depends on your land, your objectives and your appetite for a market that is still maturing. We assess each on its own merits rather than assuming any one is right for you.
How long do these commitments last?
Longer than most investors expect. Biodiversity Net Gain agreements run for at least thirty years, and carbon projects span the full growth cycle of the woodland or the restoration. Entering one of these markets ties up the land for a long time, which is exactly why the structuring at the start matters so much.
What returns can I expect?
It varies considerably by market, location and how a project is structured, and these are young markets where pricing is still settling. Natural capital can offer diversification and long-term value alongside an environmental return, but anyone promising fixed, high returns should be treated with caution. We give you a realistic appraisal of the numbers for your specific project rather than a market average.
Will natural capital affect my tax position and reliefs?
It can, and the tax regime in this area is still developing. The treatment of environmental land for inheritance tax and other reliefs has been changing, and the position differs depending on the scheme and how the land is held. This is a point to take specialist tax advice on early, and we make sure it is considered before you commit rather than after.
Can natural capital sit alongside farming or forestry on the same land?
Often, yes, and for many investors that is the appeal. Natural capital can complement an existing farming or forestry operation rather than replace it, though the rules on combining environmental schemes and avoiding double-counting are detailed. We work out what can sensibly sit together on the same holding and how to structure this cleanly.
