Defra’s Nature for Climate Fund Programme has had some success in increasing tree planting and peatland restoration across England.
These activities make significant contributions to greenhouse gas reductions, and other improvements such as biodiversity, air quality and access to woodland.
But a new report from the NAO finds that recent funding uncertainty has slowed momentum and there are opportunities for increased participation and use of private finance in future schemes.
In 2022 (the latest data available), just 14.9% of England’s land was covered by trees, one of the lowest in Europe. The Nature for Climate Fund Programme, established by Defra in 2020, aimed to increase tree coverage and to restore peatland, 80% of which in England is in a dry or degraded state.
The NAO finds that the Programme led to a substantial increase in tree planting and peatland restoration. This includes, in 2024-25, directly funding 6,324 hectares of tree planting (out of 7,162 total hectares in England). While this was lower than the target of 7,500 hectares a year, it is nearly as much as the amount planted in total over the five years before the Programme was established.
However, the Programme had a slow start and earlier years were further away from planned levels of activity, meaning it missed its headline cumulative targets; to achieve 28,728 hectares of tree planting and 35,000 hectares of peatland restoration.
In the five years from 2020-21 to 2024-25, the Programme directly funded:
- 15,268 hectares of tree planting (53% of the target). Total tree planting in England in the period was 21,186 hectares (74% of the target); and
- 23,526 hectares of restored peatland (67% of the target). Total peatland restoration in England in the period was 26,426 hectares (76% of the target).
Stakeholders such as community forest organisations, landowners and third sector organisations reported delays initially to the processing of grant applications and land use changes, leading to a slow start to the Programme.
Defra expects the Programme to deliver very high value for money. Its estimates of the actual benefits it has delivered (such as carbon sequestration, improved air quality and biodiversity) do not yet cover the full range of outcomes or the whole five-year period, but it plans a final evaluation later in 2026.
The NAO recommends that Defra:
- Further improve its monitoring of intended beneficial outcomes from its investment in tree planting and peatland restoration activities.
- Ensure there is a process to prioritise its objectives for future programmes, for example between carbon reduction, timber production and nature improvements.
- Take a more proactive approach to managing tensions between government’s ambition to restore nature and its other policy objectives that are putting development pressure on peatland and woodland.
- Revisit long-term targets for tree planting and peatland restoration by 2050 to establish whether they remain realistic and ensure they are aligned with delivery capacity.
- Where possible, reduce uncertainty for delivery partners and wider stakeholders, particularly during transition periods.
- Create the right conditions to attract private investment in nature restoration activities.
Gareth Davies, head of the NAO, said: “Defra’s Nature for Climate Programme has helped to significantly increase tree planting and peatland restoration in England.
“In order to ensure momentum doesn’t stall, Defra should apply what it has learned about the most effective use of its funding, to maximise the climate and biodiversity benefits and attract private investment.”
