The South Downs National Park Authority, National Parks Partnerships and Legal & General have announced a landmark partnership to deliver one of the UK’s largest woodland creation initiatives. The South Downs Woodland Carbon Project will create more than 500 hectares of new woodland across the UK's National Park, using carbon finance to unlock large-scale, long-term investment in nature recovery.

Co-designed by Palladium, the project is expected to remove over 150,000 tonnes of carbon dioxide equivalent (CO₂e) over the next 40 years. By combining public woodland grants with early private investment from Legal & General, the partnership enables woodland creation to begin sooner and at greater scale, while also generating high-integrity carbon credits alongside wider environmental benefits.

Palladium played a central role in designing the project alongside National Parks Partnerships and the South Downs National Park Authority, developing the carbon finance framework and delivery approach that underpins the partnership. The result is a structure that brings together public funding and private investment in a way that works for land managers as well as for investors.

Legal & General (L&G), one of the UK's leading financial services groups and a major global investor, will invest in a portion of the carbon credits generated by the project, providing early-stage finance that helps landowners move ahead with planting. By stepping in at this point, the partnership closes a funding gap that often delays woodland creation, allowing projects to proceed sooner and at greater scale.

The focus is not only on carbon. The new woodland will restore habitats, link fragmented ecosystems and improve soil health across the South Downs. Over time, the changes will support wildlife and strengthen the resilience of the landscape in the face of increasing pressure from extreme weather.

For landowners and farmers, the project offers a practical route into carbon markets without requiring them to give up control of their land. Participants combine existing woodland grants with additional income from carbon payments, making it financially viable to establish and maintain woodland while continuing to manage their holdings. Interest is already building among land managers who see the model as a way to align environmental goals with long-term business stability.

This emphasis on local knowledge was a key part of the project’s design. Farmers and land managers are closely involved in identifying where woodland can be established successfully—taking into account soil conditions, existing land use and long-term management needs. Their role shapes how and where planting happens, ensuring that new woodland fits the character and function of the landscape.

Holly Story, Head of Nature-based Solutions at National Parks Partnerships, says the project shows what is possible when finance and land management are connected effectively. “National Parks are where nature inspires action. This partnership demonstrates how businesses, protected landscapes and landowners can work together to deliver vital action for nature and climate at scale,” she says. “The South Downs Woodland Carbon Project is a powerful example of how private finance can unlock nature recovery while supporting local communities and land managers.”

The initiative also supports the South Downs National Park Authority’s ReNature target, which aims for 33% of the park to be managed for nature by 2030. James Winkworth, Director of Growth and Organisational Development, emphasises the importance of introducing new funding approaches to meet that goal. “We want nature everywhere for everyone because nature underpins everything, including our water, soils, food, air and wellbeing,” he says.

“This partnership demonstrates how private finance can support landowners and land managers to create new woodland, restore nature and strengthen landscape resilience while retaining ownership of their land.”

For investors, the project offers a clear link between climate targets and measurable outcomes. Carl Moxley, Group Climate Director at Legal & General, points to the long-term value of the investment. “Nature is fundamental to economic resilience and long-term prosperity. Through this partnership, we are investing in a purposeful, high-quality nature-based solution that will help address climate change and biodiversity loss while creating long-term environmental value and societal benefit,” he says.

For Palladium, the project demonstrates how carbon finance can be structured to deliver results beyond emissions reduction. By designing a framework that connects funding, policy and local delivery, Palladium has helped create a model that can be applied in other protected landscapes. The approach provides a clear pathway for scaling woodland creation while maintaining credibility in carbon markets and delivering tangible ecological outcomes.

Once planting begins at the end of the year, the impact will be visible not in abstract targets but in new woodland taking root across the South Downs National Park. The project shows how carbon finance, when aligned with local expertise and long-term stewardship, can translate directly into restored landscapes and sustained environmental change.