PLACE-BASED PROJECTS | REVENUE GENERATION R7. PROPORTION OF PROJECTS GENERATING REVENUE

Projects Generating Revenue

Whether from the sale of environmental credits or products for which sales finance environmental restoration activity directly, revenue is the core of most nature finance projects. Without it, repayable finance and investment are not possible. The main exception is private investment in rural land on the basis of the uplift in its market value that is likely to result of improved environmental condition.

A total of 122 projects participating in the survey stated their position on revenue generation. A minority of projects (21%) said that they were generating revenue at the time of their participation in the survey. A further 51% of projects reported that they likely would be generating revenue within the next five years. The remainder did not expect to generate revenue (see the Discussion for possible explanations of this).

Revenue And Organisation Types

Voluntary groups1 and registered charities are organisation types with the largest proportion of projects generating revenue or likely to in the next two years (over 60% of projects within both groups), followed by private landowners (43%). Only five projects were represented by tenants.

Revenue Across Land And Marine Habitats

A smaller proportion of projects involving a marine habitat are generating revenue than projects involving non-marine habitats.

Revenue Amounts

A total of 24 projects reported the level of revenue they were expecting once up and running (if not already). Nine projects estimated revenues of £100,000-500,000, eight projects estimated revenues of more than £1 million, four projects estimated revenues of up to £100,000, three projects estimated revenues of £500,000 to £1 million.

Notes

1. Voluntary and Community Sector Organisations are entities set up to serving local communities, but that aren’t registered charities. They may include Community Interest Companies.

PROPORTION OF PROJECTS GENERATING REVENUE IN MARINE AND LAND-BASED HABITATS

Total non-marine habitats

Total marine habitats

R9. PROPORTION OF DIFFERENT ORGANISATION TYPES GENERATING REVENUE

Local government (including National Park authority)

Private sector company

Private landowner

Voluntary and community organisation

Projects were invited to select the revenue types that were applicable to them. Many chose multiple revenue types. Biodiversity unit sales (118 projects – 66%) and carbon credits (110 projects – 61%) were the most common types of revenue. Biodiversity credits were also the revenue stream of greatest interest in the focus group that comprised farming representatives from England (a legal requirement for biodiversity net gain through built development will come into force in England in November 2023).

The revenue streams reported in the ‘other’ category were commodities (such as ‘conservationgrade’ food products and seaweed) and rental income. Of those projects reporting revenue relating to reductions in the loss of nutrients to water courses, 29 related to nitrogen and 24 related to phosphorous (28 did not state the type of nutrient credit involved).

R11. REVENUE STREAMS BETWEEN PROJECTS

INVOLVING MARINE OR LAND-BASED HABITATS

Frequency revenue streams were reported against marine habitats or land-based habitats

Projects involving marine habitats were less likely to report the pursuit of specific revenue streams than those that were entirely land-based.

In general, there was little correlation between the habitats within project areas and the revenue streams that were being accessed or targeted.

R12. REVENUE BY CATEGORY OF WHAT IS BEING (OR WILL BE) SOLD

Note that this analysis does not include NEIRF projects as the data were not available to EKN via the ongoing evaluation by the appointed contractor.

No revenue plans

No, but is expected to generate revenue in the next 3-5 years

No, but is expected to generate revenue in the next 2 years

Generating revenue

Comments from a farm business representative in the EKN survey

Location Lyme Bay, Devon

Size 15.4km2

Habitats Inshore coastal waters