Environmental markets and natural capital

This is a rapidly growing new market where we have already seen a steady but rapid increase in the number of instructions and the range of environmental services and credits being provided and traded.

Our expertise in environmental markets and nature capital

In response to the high demand for legal support in this area we have brought together a team of experienced lawyers working together to cover all aspects of law affected by environmental markets.

Our support covers:

• Carbon Capture/Offsets
• Biodiversity Net Gain (BNG)
• Environmental Land Management Schemes (ELMS)
• Nutrient Credits
• UK Woodland Carbon Code (WCC)
• UK Peatland Code (PC)
• Sustainable Farming Incentive (SFI)
• Countryside Stewardship
• England Woodland Creation Offer (EWCO)

Alongside updated government funding and grant schemes including ELMS (environmental land management), being Sustainable Farming Incentive, Countryside Stewardship and Landscape Recovery and other grants such as Farming in Protected Landscapes, England Woodland Creation Grant, Farming Investment Fund, Slurry Infrastructure Grant and Delinked Payments (to name but a few), there are new opportunities for landowners and farmers developing in private markets.

There will be a wealth of opportunities now and in the future for landowners and land managers. Clarke Willmott has considerable experience of putting legal arrangements in place to secure natural capital trading and manage associated risks including the establishment of biodiversity off-setting schemes, habitat banks, nutrient neutrality off-setting (both on a site specific or land-bank basis). We have acted for all parties in these transactions including landowners, credit providers, developers and brokers.

In March of this year, the Government detailed plans for its’ Green Finance Strategy, aimed at harnessing the UK’s financial services sector to support the country’s environmental objectives.

This strategy seeks to encourage a credit trading economy whereby natural capital is seen as “part of our natural wealth, alongside traditional assets such as infrastructure, skills, buildings and technology..”

These developing markets will potentially provide landowners and farmers with considerable opportunities. In March, the Government said: “There are a range of private sector opportunities for farmers and land managers to access new income streams to invest in their holdings. We want farmers and land managers to be able to access payments confidently and securely from both the public and private sector for the environmental benefits they produce.” The government has set a “target in England for private finance into nature’s recovery to reach over £1 billion a year by 2030”.

Expertise with drafting promotion agreements, section 106 agreements and other documents

Our leading expert, Partner, Caroline Waller, has been at the forefront of delivering advice, and drafting contracts, in the emerging Environmental Markets & Natural Capital market. With several high value contracts now completed, she and her team have developed a strong understanding of the current array of options available for landowners to sell credits and engage in environmental schemes.

Working closely with the National Farmers’ Union (NFU), as their approved Panel Firm for Dorset, Somerset, Gloucestershire, and Wiltshire, we stay abreast of all new developments in this expanding market.

This in-depth approach gives our clients the confidence to embrace these exciting new opportunities with a full understanding of their implications both now and into the future, content that we have achieved the best possible terms for their unique business.

Before engaging in any of the above schemes it is critical you seek professional advice on the impacts they may have on tax, succession, mortgages, planning, future land sales and existing contracts. Contact Sam Mackenzie-Green in our dedicated Environmental Markets Team to get the very best advice on these exciting new markets.

With offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton and our broad client base, we are ideally placed to identify and advise on potential deals.

Let our team of specialist agricultural lawyers create promotion and other agreements that maximise the nature capital opportunities of your land.