The Scottish Government recently announced new grant awards via the Facility for Investment Ready Nature in Scotland (FIRNS). The £1.87 million of funding from Nature Scot and the National Lottery Heritage Fund will support eleven projects all aiming to unlock private investment in nature-based solutions in Scotland.

Palladium’s UK Natural Capital team is one of the funding recipients, with a project to unlock institutional investment into a national portfolio of woodland and peatland projects across Scotland. Since its launch in 2023, there have been 44 successful FIRNS grant awards, sharing almost £6.5 million. In the 2025 cohort alongside Palladium’s UK Natural Capital team are a range of projects exploring innovative ideas to attract investment for peatland, woodland, coastal and marine and urban areas, helping to create healthy air, soil, water, forests, fisheries and seas to halt nature loss and tackle climate change.

The announcement signals a critical shift toward harnessing private capital for environmental goals—and comes as climate targets for 2030 and 2050 loom ever closer.

Palladium’s grant award success builds on years of deep engagement with Scotland’s natural capital landscape. “Since 2021, our team has been working directly with farmers, landowners, and communities to develop viable models that restore ecosystems while supporting rural livelihoods,” explains Naomi Conway, Palladium’s UK Director of Nature.

Building Demand and Supply for Scottish Nature Carbon

The FIRNS-funded initiative is structured around two key goals. First, it will accelerate the development of two nature restoration projects—focusing primarily on native woodland creation and degraded peatland restoration which, once restored, act as natural carbon sinks—to bring them closer to being “investment-ready.” Second, it aims to stimulate the market for Scottish carbon credits by engaging businesses in forward purchasing and provision of upfront carbon project finance.

“This isn’t just about planting trees or restoring peatland,” adds Conway. “It’s about helping to build a functioning nature investment market in Scotland. We want to stimulate demand for these high-integrity carbon credits and support companies to get involved now because every delay makes it harder to meet Scottish nature and climate goals.”

What Does “Investment-Ready” Mean?

In the context of nature-based solutions, being investment-ready means more than simply identifying restoration opportunities. It involves rigorous project development, stakeholder engagement, and the establishment of clear pathways for return-seeking investment or corporate carbon purchasing.

Naomi comments “Our goal is to get these projects to a stage where they can sign contracts with companies or investors this unlocks capital that takes the projects from concept to reality.”
“Once investment flows, that’s when the planting and restoration begins in earnest,” she adds.

A Model That Keeps Farmers on the Land

Unlike some nature-based investment schemes that rely on large-scale land acquisition, Palladium’s approach is built on long-term collaboration with Scottish farmers and landowners. The team has developed a model that allows landowners to retain control of their land, while generating new income streams through woodland creation or peatland restoration.

“This is about creating real livelihood opportunities,” says Conway. “We’ve worked hard to make sure that our projects don’t displace communities or push land into the hands of absentee owners. Instead, we co-design restoration work that benefits local people, biodiversity, and the climate.”

While the £1.87M FIRNS initiative is Scotland-specific, it aligns with much of the work Palladium’s teams are doing globally. “In the UK, our goal is to help lay the foundations for an ethical, investable natural capital market. Globally, we’re applying the same principles—developing the tools, capacity, and partnerships to scale nature-based solutions in ways that are economically and socially inclusive.”

A Call to Action

As Scottish nature faces mounting pressures—from degraded peatlands to dwindling native woodlands—the scale of the challenge is daunting. But so is the opportunity. With the right investment, these landscapes can become powerful carbon sinks, biodiversity havens, and sources of rural revitalisation.

“This funding helps those of us working hard to build a strong and ethical Scottish natural capital market,” Conway adds. “But to meet the moment, we need companies, investors, and landowners to step forward and be part of the solution. The time to act is now.”

For more information about Palladium’s work in the UK natural capital space, see here or contact info@thepalladiumgroup.com.This project is supported by The Facility for Investment Ready Nature in Scotland (FIRNS), delivered by NatureScot in collaboration with The Scottish Government and in partnership with the National Lottery Heritage Fund.