The UK government has launched the Nature Restoration Fund, a new initiative designed to accelerate housebuilding while delivering measurable improvements to the natural environment across England. The fund is part of the recently enacted Planning and Infrastructure Act and aims to address long-standing conflicts between development and environmental protection. By pooling developers’ contributions, the fund will support large-scale conservation projects, including habitat restoration, species protection, wetland creation, and river and lake cleanup, providing benefits for both communities and nature.
Under the new system, Natural England will collaborate with public bodies, environmental organisations, private markets, and developers to produce Environmental Delivery Plans (EDPs) for specific areas. These plans will outline conservation measures that address the environmental impacts of development. Developers with an EDP in place can make payments into the Nature Restoration Fund rather than carrying out individual mitigation measures themselves, allowing improvements to be delivered at a strategic, larger scale.
The first EDPs are scheduled for launch in 2026 and will initially focus on tackling nutrient pollution in rivers, lakes, and estuaries, which has previously blocked housing projects. EDPs will be voluntary by default, though they may be made mandatory in specific cases with approval from the Secretary of State. Each EDP must pass an Overall Improvement Test, ensuring that the proposed conservation actions will produce benefits that outweigh any negative impacts from development.
Nature Minister Mary Creagh highlighted that the fund represents a shift in the planning system, enabling the delivery of new homes while restoring protected habitats and species. Natural England CEO Marian Spain added that the fund will also support the green economy by sourcing conservation work through open competition and driving strategic interventions that restore natural systems essential for public wellbeing and economic prosperity.
The Nature Restoration Fund forms a key part of the government’s planning framework, supporting the delivery of 1.5 million homes and 150 major infrastructure projects within the current parliamentary term. The initiative is intended to make it easier for developers to meet environmental obligations while achieving tangible improvements for nature at a national scale.
