Welsh Government must seize the day on nature finance

Last month Llyr Gruffydd, the new Welsh Government’s Cabinet Minister for Rural Resilience and Sustainability, made a statement to the Senedd on the priorities for his portfolio. It was heartening that he opened with the Government’s commitment to take action on climate and nature “not only because of its environmental importance … but also because of its central importance to the future prosperity, health and resilience of Wales”.  

This focus on action for nature is desperately needed: the State of Nature Wales 2023 reported that the abundance of land and freshwater species has on average fallen by 20% across Wales over three decades, and one in six species assessed is at risk of being lost from Wales. Historic and continued pressures on our wildlife mean that Wales is now one of the most nature depleted countries on earth.

During the same week as the Cabinet Minister’s statement, a week in which temperatures soared meaning that events planned as part of the London Climate Action Week had to be cancelled, the RSPB launched a new report: The Economic Case for Nature.  

The report emphasises the vital role nature plays, quoting estimates by the Office of National Statistics  that the natural environment in Wales has an asset value of at least £97 billion based on the value of benefits it provides to society (noting that this is only a partial estimate). As the Cabinet Minister said, “Clean air, clean water, healthy soils and thriving ecosystems are not optional extras. They support public health, they protect communities and create the conditions for Wales to develop sustainably.” 

The report estimates a funding gap for nature in Wales of £526 million per year, for ten years, beyond current levels of Welsh Government spending. Importantly though, it also estimates that investing this additional funding would support 5,630 new jobs and generate £7.2 billion of economic output in the Welsh economy over ten years. These benefits are spread across sectors including fisheries, farming, other land management and water. To put these figures in context, 5,630 jobs is equivalent to about 40% of the number of jobs in water, sewerage and waste in Wales; 20% of the jobs in agriculture, forestry and fishing; and 6% of the jobs in construction.  

During his statement the Cabinet Minister announced a new round of the Welsh Government’s Nature Networks Fund, which will see £10 million of investment delivered in partnership with the National Lottery Heritage Fund. While welcome, this is clearly a drop in the ocean compared to what nature needs, and the Welsh Government must direct more public funding to nature recovery.  

As the Cabinet Minister said ‘public funding alone can’t achieve our climate and nature objectives’. He made a welcome commitment to consult, later this year, on how the Welsh Government will unlock responsible private funding to restore land and seascapes.

With this summer’s record breaking hot weather, it is clear this new nature finance plan is urgently needed.