Nature Economy: Reconnecting Nature, Business & People

Nature Economy: Reconnecting Nature, Business & People

(C) Matthew Roberts

Louis Egerton Legum talks about the role of nature economy in nature's recovery.

Across the UK, we’re witnessing pockets of nature rebounding. From rewilded landscapes to species returning to once-silent habitats, the hard work of conservationists, landowners, and volunteers is paying off. Here in Derbyshire, we’ve seen incredible efforts to restore rivers, regenerate woodlands, and protect wildlife. These stories are sources of inspiration amidst an otherwise sobering national picture. 

While it is essential that we celebrate local progress, the bigger picture remains deeply concerning. The State of Nature Report shows that one in six UK species is now at risk of extinction. Nature loss isn’t just continuing — it’s accelerating. And the unavoidable truth is that we’re not yet acting at the pace or scale needed to reverse it.

To fully restore functional, resilient ecosystems across Derbyshire and beyond, we need more than philanthropic goodwill and dedicated people. We need funding — and lots of it.

Nature Recovery is Vital — But It’s Also Expensive

Nature recovery isn't just about planting trees or reintroducing species — it’s about restoring entire ecosystems. This endeavour takes planning, expertise, monitoring, and time. It also takes significant financial investment, often from landowners.

Right now, the biggest obstacle we face in scaling up this work isn’t knowledge or ambition - It’s money. In the 2021 The Finance Gap for UK Nature report, the Green Finance Institute estimated a £56 billion funding gap over the next decade just to meet the UK’s nature-related outcomes. While government funding and charitable donations have been, and remain, essential to conservation efforts, they simply can’t bridge that gap alone.

Therefore, we need to be more ambitious and innovative in our approach to funding nature recovery. We need to invite new partners to the table — including the private sector.

Young trees planted with tree guards around them

Ross Hoddinott/2020VISION

Why Would Businesses Pay for Nature Recovery?

It’s a fair question. But the answer is surprisingly straightforward: because they depend on it.

Nature underpins almost every aspect of our economy — from clean water to crop pollination, flood protection to climate regulation. These are known as ecosystem services — often invisible, but vital benefits that nature provides to people and businesses alike. In Derbyshire alone, the total annual net value of ecosystem benefits and services produced is estimated to be £2.6 billion. 

Almost all industries rely on ecosystem services, whether directly (like agriculture, food, and tourism) or indirectly (through risk mitigation, water availability, or climate regulation). As the health of our ecosystems decline, we’re already experiencing the costs: degraded soils, increased flooding, more frequent wildfires, and unpredictable weather patterns. Furthermore, the recession of nature severs our connection with the natural world, depriving communities of its associated improved well-being. However, these aren’t just environmental and social problems — they’re economic ones. The UK could lose up to 12% of its GDP by the 2030s due to nature loss and its knock-on effects. That’s more severe than the impacts of the 2008 financial crisis or the COVID-19 pandemic.

So, while businesses do have a self-interested reason to invest in nature, they also have a moral one - those whose operations degrade ecosystems should be expected to help restore them.

How Can the Private Sector Support Nature Recovery?

There’s no single model — and that’s part of the strength of this emerging movement. Investment can happen in several ways:

  • Regulation: Policies like Biodiversity Net Gain (BNG) require developers to compensate for habitat loss by funding local nature recovery.
  • Voluntary markets: Businesses can fund tree planting, peatland restoration, or wetland creation to offset emissions or demonstrate environmental responsibility. These transactions can be facilitated through a range of standards including the Woodland Carbon Code, the Peatland Code, Wilder Carbon and other bespoke agreements.
  • Guidance frameworks: Tools like the Taskforce on Nature-related Financial Disclosures (TNFD) help companies understand their nature-related risk and opportunities, allowing them to realise the need to embed restoration into their business models.

What all these approaches share is a common goal: making nature visible, valuable, and investable in economic decision-making.

This is the heart of a nature economy — an economy where the benefits of healthy ecosystems, and the costs of their degradation, are factored into how we do business, plan land use, and measure success.

A Fairer, Greener Future for Derbyshire

The potential of a nature economy isn’t just about unlocking funding — it’s about creating fair and inclusive opportunities for people.

As demand for nature restoration grows, it creates business opportunities for landowners and farmers to produce ecosystem services. Historically, engaging in nature conservation has been prohibitive, an unfeasible option without land to spare or incurring cost. But now, through restoring habitats, improving soil health, or supporting wildlife, farmers and landowners can be paid to recover nature and deliver ecosystem services that benefit society.

Following Britain’s exit from the EU, payments under the Common Agricultural Policy (CAP)—which many farmers relied on to supplement their income—came to an end. With the current Basic Payment Scheme (BPS) being phased out, and with short-term government funding still uncertain, many UK farmers are increasingly seeking to diversify their income streams. The leveraging of private finance to fund nature restoration presents a financially viable alternative, offering a route that enhances farm resilience long-term while contributing to environmental recovery

In practice, this means farmers creating habitat that boost pollinators and biodiversity. It means landowners managing peatland that stores carbon and reduces flood risk. It means local communities benefiting from cleaner air, reduced flooding, and accessible green spaces. 

At Derbyshire Wildlife Trust we envisage a nature economy that sustains people, business, and nature.

A farmer surrounded by cows

Matthew Roberts

What Next?

At Derbyshire Wildlife Trust, we’re already working to build this vision — restoring landscapes, working with farm businesses, and championing the economic case for nature. But we can’t do it alone.

We need policymakers to embed nature into decision-making. We need businesses to become responsible for, and invest in, the natural systems they rely on. And we need communities to demand the protection of ecosystem services for a fairer, more prosperous Derbyshire. 

Nature isn’t a nice-to-have. It’s the foundation of a thriving economy. 

Any landowners keen to explore Nature Economy options on their land, please contact our Nature Economy Manager, Ellie Field at enquiries@derbyshirewt.co.uk