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The partnership will seek to deliver direct community benefit as a result of the investment, in line with the expectations of the Scottish Government’s Interim Principles for Responsible Investment in Natural Capital. This will include full consideration of community wealth building opportunities and exploring potential ways the investment could support more diverse land ownership, drawing on current and emerging advice from the Scottish Land Commission. No assessment has been completed at this stage as the project partners are in ongoing dialogue about how the investment model will work. However, assessments will be published after completion of the project design phase.

The Memorandum of Understanding (MOU) does not confer any guarantees or preferred status to the partners and allows NatureScot to work and enter agreements with other parties, both in the locations identified in the MOU and across Scotland. MOU signatories will not have exclusive access to land managers and external parties will still be able to submit applications for public funds and grants. The usual processes and policies for public grants will apply.

This project will work with existing land owners and managers to restore native woodlands and other habitats, rather than acquiring land or changing land ownership. Although the Memorandum of Understanding does not rule out the purchase of land, the only scenario in which the partnership would consider this is where there is an opportunity for a community to buy land and help deliver the project aims.

The matters referred to will be explored during the design phase of the project. Alternative models of ownership will be encouraged, where appropriate and this will be further scoped during the design phase of the project.

I refer the member to the answer to question S6W-15876 on 24 March 2023. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers .

As the intention is to work with existing land owners, NatureScot do not anticipate that the investment will contribute to increased land values as a result of the sale or purchase of land. However, investing in natural capital may increase land values as it improves the condition of the land and subsequently increases the potential for land managers to generate revenue from the sale of ecosystem services. This is an unavoidable outcome of delivering our nature restoration targets.

Community benefits, such as those referred to, will be explored during the design phase of the project.

NatureScot approached the Scottish Land Commission to provide advice so that the design of the investment meets the expectations for community engagement, benefit and ownership that are set out in the Scottish Government’s Interim Principles for Responsible Investment in Natural Capital. Neither the Scottish Land Commission nor NatureScot will be paid by the investors for their advice.

The Scottish Government has increased public investment and support in our natural capital through a variety of methods. This includes the £65 million Nature Restoration Fund, and the Facility for Investment Ready Nature in Scotland (FIRNS) that was launched in February this year. However, the Global Biodiversity Framework that was agreed at COP15 last year identified leveraging responsible private finance as a key target, and in Scotland alone it is estimated that there is a finance gap of £20 billion to meet nature-related outcomes.

For the purposes of this agreement, NatureScot entered into discussions with Hampden & Co., Lombard Odier Investment Managers and Palladium and mutually agreed that a Memorandum of Understanding would best define the ways of working and respective roles of parties, as is commonplace.

This is a partnership project and not a procurement project. It is not exclusive to the partners involved and NatureScot would be delighted to work with other responsible private investors looking to invest in nature restoration in Scotland.

Private investment resulting from the Memorandum of Understanding will support woodland expansion, peatland restoration and enhancement of other habitats. It will pay for all capital costs, though we anticipate that land managers involved will also apply to existing grant schemes such as the Forestry Grant Scheme.