New Oxfordshire Nature Recovery Fund opens up finance for nature projects
A new fund is being developed to help Oxfordshire farmers and landowners overcome one of the common barriers to getting nature recovery projects underway, finding the money needed upfront.
The Oxfordshire Nature Recovery Fund (ONReF) will provide patient loans to farmers, landowners and community enterprises for projects that deliver measurable environmental benefits and have the potential to generate an income over time.
Unlike a grant, funding through ONReF will need to be repaid. The idea is to bridge the gap between the initial cost of establishing a project and the point at which income begins to come in. For example, through Biodiversity Net Gain (BNG), carbon credits, Natural Flood Management payments or schemes where funding is paid in arrears. Once a loan is repaid, the money can then be used to support another project.
What could ONReF support?
Projects could include habitat creation or restoration such as species-rich grassland, wetlands, hedgerows and woodland, as well as river and catchment improvements and other projects capable of generating nature-market income.
To be considered, projects need to meet three broad criteria: they must deliver a measurable benefit for nature in line with Oxfordshire’s Local Nature Recovery Strategy; have a credible route to generating income to repay the loan; and fill a genuine financing gap where suitable funding would be difficult to secure elsewhere.
Loans of up to £150,000 per project are proposed, on sub-commercial terms, with flexible repayment arrangements recognising that income from nature projects can take time to materialise. Exact terms will be agreed individually with applicants.
What might this look like on a farm?
ONReF has produced five example scenarios showing how the finance could work in practice, including creating a small biodiversity habitat bank, bridging the wait for a Natural Flood Management grant, woodland creation alongside carbon income, wildflower meadow restoration linked to nature-based tourism, and investment in soil carbon. These are illustrative rather than prescriptive, and other nature recovery projects may also be considered - How ONReF Could Work – five examples
Interested?
ONReF is currently building a pipeline of potential projects ahead of lending opening.
Farmers and landowners do not need to have a fully developed project at this stage. A short Expression of Interest form is available to outline an idea, how it might generate income to repay the loan, and any advice already received. It takes around 15 minutes to complete and is not a commitment or formal application.
Completed forms should be returned to Matt Whitney at matt.whitney@southandvale.gov.uk and Charlie Addison-Adams at charlie.addison-adams@southandvale.gov.uk.
ONReF is a partnership between the Trust for Oxfordshire’s Environment (TOE) and the Oxfordshire Local Nature Partnership (OLNP), supported by Oxfordshire County Council.
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