Unlocking UK Nature Markets: Overcoming Legal & Practical Challenges
Based on the Freeths Nature Markets conference held at the Royal Society, London, on 24 September 2025.
Report published: 8 December 2025.
Landmark nature markets conference
At a flagship gathering at the Royal Society, Freeths convened approximately 100 representatives from across the development, conservation, finance, and natural capital sectors to tackle the biggest question in nature markets: what can be done to generate further private investment in nature restoration.
Led by Penny Simpson, Partner and Head of Freeths’ Natural Capital legal team, the conference pulled on key themes to deliver clear priorities for Government and a practical roadmap for creating high integrity, scalable nature markets.
This page summarises the key insights form the conference. The full 15-page report is available to download for deeper analysis.
Penny Simpson
Partner | Head of Natural Capital Law
Key messages to Government
At a glance:
- Fix the fragmentation: The current regulatory and policy framework is disjointed and complex, with compliance drivers stuck in the planning system meaning that they don’t drive system widescale land-use change
- Create “Nature Positive Pathways”: Like net zero pathways, sector plans for nature would give clarity on how different sectors can contribute to national targets, hopefully stimulating demand for nature markets
- Reduce policy volatility: Uncertainty through policy and legislative change kills investment - markets need stability and predictable returns to thrive and draw in investment
- Establish market governance: A legally underpinned framework (standards, metrics, transparency) and a central regulator would refocus Government’s role in enabling, rather than just delivering, nature markets
- Generate demand signals: Without stronger compliance drivers, the Government’s Environmental Improvement Plan targets will be missed, and finance won’t flow
- Mobilise the public estate: Local authorities and public bodies can unlock early supply and demonstrate proof of concept
Why this matters now
- Private finance is essential to closing the nature restoration gap in England. Compliance drivers tied to planning (eg mandatory BNG) are creating some demand, but they’re too narrow to achieve landscape scale recovery. Meanwhile, statutory nature targets exist, but sector pathways do not, leaving businesses unclear on what to do when
- Our report includes a one page visual showing how compliance and voluntary drivers interact and where the gaps are
Highlights from the conference discussions
Panel 1
- Core issue: Markets are starved of demand signals beyond the planning regimes. Investment is available, but policy instability deters it
- What’s needed:
- Clearer compliance drivers (beyond the planning system) across sectors.
- Sector plans (NPPs) for agrifood, water, built environment – aligned to statutory EIP targets
- Policy stability to de risk investment
- Public land to accelerate supply: Local authorities and public bodies can potentially accept lower rents to unlock early projects, while the private sector scales
- BNG is working but fragile: Mandatory BNG rules created real demand for off site units; but current uncertainty is undermining confidence. NSIP BNG rules are expected to boost demand
- Integrity matters for growth: Fragmented rules and uneven standards risk additionality/double counting concerns and depress prices
- Voluntary standards help (eg BSI Flex 701): Good for operations integrity but not enough for project/credit/buyer integrity at scale
- A governance framework is needed: Clear definitions, standardised metrics and accounting, transparent national registers, oversight of claims - potentially via a nature markets regulator
- Rating agencies could add clarity: Assess sites on ecological integrity, financial security, governance, and community benefit while managing conflicts of interest
- Explore the evidence and polling results →
Panel 1
Demand & supply in a changing legal landscape
Panel 2
Building integrity and scaling governance
What you can do now
From our audience
- Plan early for BNG and potential NSIP BNG rules; consider habitat banks and aggregated procurement
- Track the emerging Nature Restoration Fund (NRF) without assuming it will fully offset your needs
- Assess land suitability for habitat banks and nature credit projects; explore blended finance
- Work with credible standards and transparent registries to enhance credit value
- Use public land to catalyse regional supply and pilot catchment scale projects
- Partner for delivery - capacity and incentive alignment are critical
- Start insetting and portfolio purchasing to meet nature-related KPIs
- Prioritise additionality & traceability; prepare for potential disclosure duties
About the conference
- Where & when: Royal Society, London, 24 September 2025
- Who attended: 100 representatives across development, conservation, landowning, consultancy, finance, ecological surveying and habitat banking
- What we did: Mapped the current legal/policy landscape; debated demand drivers; explored governance options to ensure high integrity markets
How we can help
- We advise on legal frameworks, market governance, project structuring (habitat banks, nutrient neutrality, BNG), portfolio purchasing, and risk management for high integrity nature credits. We work with developers, landowners, public bodies, investors, and utilities to design credible, scalable nature based solutions
- Download our full report →
FAQs
Fragmented regulation, over reliance on planning-led compliance, policy instability and weak demand signals beyond development activity.
They translate national nature targets into sector specific actions and policies - giving businesses clarity and stimulating investable demand.
Mandatory BNG has rapidly grown off site unit supply and demand. Uncertainty, however, has dampened confidence; NSIP BNG rules are expected to help.
The market strongly favours a legally underpinned governance framework (potentially a regulator) to standardise metrics, ensure transparency and protect integrity.
By using public land to unlock early supply, partnering for delivery, and accepting lower initial returns to reflect wider social benefits.
Additionality, robust standards, transparent registries and alignment with emerging disclosure expectations.
Related expertise
Meet our team
Penny Simpson
Partner | Head of Natural Capital Law
Stephanie Gozney
Managing Associate
Adrian Hackett
National Head of Taxation Services
Nathan Holden
Partner & Head of Local Government
Kirstin Roberts FCIWM
Director
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