Biodiversity Strategy 2045 and Environmental Improvement Plan 2023

The Scottish Biodiversity Strategy to 2045, published at the same time as the COP 15 Biodiversity Conference in Montreal, sets out a framework for the Scottish Government’s response to the nature emergency.

The strategy introduces measurable statutory nature restoration targets, localised recovery action plans, and the expansion of protected areas across both land and sea. Specifically, the Biodiversity Strategy calls for nature-friendly farming, fishing and forestry but what does this mean in practice?

Scotland’s Vision for Agriculture, published in 2022 gives a better understanding of the role of farmers, landowners and crofters in addressing Scotland’s biodiversity crisis. One of the ways in which the Vision for Agriculture seeks to raise biodiversity levels on farms is to make this a condition for at least half of all funding for farming and crofting by 2025. The paper states that the requirement for conditionality will expect recipients of support to deliver specific outcomes for biodiversity gains and low emissions.

The conditional element of subsidy payments marks a clear intention to depart from area-based payments such as the Basic Payment Scheme (BPS). This is in conjunction with the pressure from large retailers, to ensure that their suppliers, the producers, are actively reducing carbon emissions to net-zero. Whilst this could be viewed as another attempt to unfairly punish farmers, studies have found it may have the opposite effect. Research has shown that reducing emissions and increasing biodiversity often has a positive effect on profit, even if production lowers slightly. This is due to the soaring price of inputs and business inefficiency, the latter of which is tied closely to carbon emissions.

Whilst there are scant details on the future of Scotland’s farm support payments, with only a roadmap promising the launch of an “enhanced payment structure” in 2026, the existing Agri-Environmental Climate Scheme (AECS) is promising an additional £14 million to promote organic farming in its latest round of funding. This will support farmers as they increase biodiversity on their land, meeting one of the goals of Scotland’s biodiversity strategy which states that the Government will support farmers and crofters to meet our food needs sustainably and to farm and croft with nature.

The Scottish Biodiversity Strategy 2045 represents a broad brushstroke, but gets Scotland moving in the correct direction if it is to meet its commitments to protect 30% of its land for nature. There are several outcomes listed in the strategy, some of which include natural capital being fully embedded in policy, additional funding for nature-based solutions and unlocking private green investment. If public funding can be geared to complement private financing, then landowners will be in an extremely advantageous position during Scotland’s transition to carbon neutrality and improved biodiversity.

Environmental Improvement Plan 2023

The Environmental Improvement Plan 2023, a revision of the 25 Year Environment Plan sets out actions that aim to accomplish ten goals. One of the goals is to improve biodiversity, but what opportunities and constraints does this offer to English farmers? The Sustainable Farming Incentive has been mired with issues since its conception, with a rush to push the scheme into operation without the detailed information required by rural businesses to adequately assess the viability of the scheme. This appears to now be largely resolved with six new standards being added in January as well as, to the relief of many, the continuation, enhancement and integration of Countryside Stewardship. The new farming schemes are expected to support 65-80% of landowners and farmers to adopt nature-friendly farming on at least 10-15% of their land by 2030

Looking forward to the future, farmers and landowners can expect further support if they are willing to take an active role in addressing Britain’s biodiversity crisis. One significant outcome of the plan is to raise at least £500 million a year in private finance to support nature’s recovery in England by 2027. The shift from public to private finance will take some time, particularly as relevant frameworks become established. The funding gap has already been felt by many through the reduction in Basic Payment Scheme subsidy payments. However, the shift away from prescriptive areabased subsidies can be viewed as an opportunity which offers more bespoke opportunities to improve environmental outcomes. The 2023 green finance strategy expects to see investment channelled into nature-based solutions for carbon sequestration, flood risk management and water quality. This investment has already begun for biodiversity and nutrient impacts in the form of Biodiversity Net Gain.

Farming subsidies have rapidly evolved since the UK’s departure from the European Union, and with the change has come the test of resilience. For rural businesses to thrive, they must take advantage of the reasonable opportunities that apply to them. Galbraith, with its large client base and breadth of cross-sector experience, is well placed to advise rural businesses, so that owners and managers get the most out of their property. n

Philippa Orr 07917 220 779 philippa.orr@galbraithgroup.com

James Lighton 07342 093 469 james.lighton@galbraithgroup.com