Critiques the ‘green finance gap’ for Scotland
This paper provides a critical analysis of attempts to quantify and address the green finance gap, and assesses some alternative mechanisms by which land use change might be facilitated. It considers in turn: • the “finance gap for UK nature” as estimated by the Green Finance Institute ;
• the Memorandum of Understanding (MoU) between NatureScot and three private sector financial organisations to mobilise £2 billion of investment in woodland creation;
• the extent of the finance gap for woodland creation in Scotland, and what alternative measures might help close it. It concludes that:
• the extent of any finance gap, at least in respect of woodland creation, is greatly exaggerated by the Green Finance Institute report; • demand for the private loan finance outlined in the NatureScot/Private Finance MoU is not clear; the finance will not obviously add significant value, whilst investment on the scale proposed seems unnecessary and unachievable in practice
• there are other potential mechanisms to incentivise and stimulate woodland creation, which might prove more effective in tackling climate change and would do more to deliver the Scottish Government’s wider land reform and community wealth building agendas.