Overview of scale and scope of funding sources Funding source Current scale of use Size of fund Management actions supported Flexibility (e.g. habitats or sectors applicable) Scope for increased / enhanced use NRW NRW core funding High: Main dedicated source of N2K funding in Wales – the scale of overall funds is reviewed on an annual basis High: NRW currently has an annual budget of £175m, a subset of which is directed towards N2K. For example an annual budget of approx. £2.2m is set aside for funding NRW management agreements High: All management actions High: No major restrictions Mod: Limited budgets mean there is limited scope for increasing use. Improved prioritisation of funding needs may enhance its application, particularly within the Forest Estate managed by NRW. European funding CAP/ EAGF Direct payments Low Primary source of income support to landowners, and applies to large proportion of terrestrial N2K area, but added value of cross compliance and greening to N2K management is limited High: Approximately £260m/year Mod: Important actions can be funded relating to habitat management schemes and provision of services (12, 15, 16) Mod: Terrestrial (agricultural) landscapes only. However, these represent a substantial proportion of N2K sites. Applies basic conditions/practices only with limited scope for added value management Mod: Applies to 70% of land area. However, benefits from greening and cross-compliance appear to be limited: wide scope but low ‘added value’ EAFRD- RDP funding Mod: RDP funds are the main source of support for agri-environmental (Glastir) agreements in Wales, however they have historically not been widely used on High: £953m for of which £572m is available for High: A wide range of management actions can potentially be funded, including the 3 ongoing management & monitoring actions (12, 15, 18) where funding Mod: Terrestrial (agricultural/forestry) landscapes only. However, these represent a significant proportion of N2K sites. High: Strong potential for more targeted application to Natura 2000, utilising the revisions for the 2014-2020 programme environment 2020,
N2K sites and uptake has been below planned forecasts need is likely to be greatest - annual management payments as well as capital projects can be funded Rural development objectives. EFF / EMFF Low: One recent application of EFF - FishMap Môn recreational fisheries project. Few examples of application to Natura 2000. Low: Funding allocation for Wales in 2014-2020 is £20.2m (8.4% of UK allocation) High: A wide range of management actions can potentially be funded including ongoing management and monitoring Mod: Limited to fisheries and coastal-marine communities Mod: Good potential for development of evidence base and partnership projects in environment. However, limited funds and competing priorities limit application. ERDF Low: No specific examples of application to N2K High: Funding allocation for Wales in 2014-2020 is £1.13bn Mod: Wide range of actions can potentially be funded, although the fund is generally best suited to capital investments Mod: All sites within East Wales/West Wales and the Valleys Operational Program areas. Focus is on development Projects must be outside the remit of other funds – so agriculture or fisheries projects would be ineligible. Mod: Potential for funding in certain areas where fits well with economic development (e.g. development of recreation, education and tourism partnerships). Competing opportunities limit potential for applicability to core conservation measures. ESF Low: No current application to N2K sites High: Funding allocation for Wales in 2014-2020 is £804m Mod: A wide range of actions can potentially be funded; however there are limits in how well N2K actions will fit with the ESF objectives Mod: All sites within East Wales/West Wales and the Valleys Operational Program areas. Focus is on skills, training and employment Projects must be outside the remit of other funds – so Mod: Potential for supporting monitoring, information, management planning and education needs. Good congruence with funds such as Heritage Lottery Fund. Competing
agriculture or fisheries projects would be ineligible. opportunities limit potential for applicability to core conservation measures LIFE Mod: Handful of completed and ongoing LIFE projects and programmes Low: Annual EU funds of £404m across 28 Member States, a small proportion of which is likely to be captured in Wales. High: A wide range of management actions, including core actions with few alternative sources of funds High: Applicable to all N2K habitats and species– projects and integrated programmes Mod: Good potential to link to wider (Wales and UK) initiatives, develop NGO and private sector partnerships. However, strong competition for funds Horizon 2020 Low: Some examples of FP7 funds being applied to conservation research in Wales, but limited direct applicability to N2K High: Total EU funds of £62bn (2014-2020) across 28 Member States Low: A wide range of management actions can potentially be funded, however these will need to be delivered as part of research-based projects in order to qualify. In practice, funding will focus on research. Mod: Applicable to a range of terrestrial, freshwater and marine habitats and species, although funds need to be research and innovation focused rather than basic information gathering Mod: Particular potential for research and innovation through rural SME partnerships and marine evidence needs Other sector plans, strategic and public funds River basin management Low: Initial support to a range of initiatives and programmes. However, applied less widely than elsewhere in the UK Low: Approximately £1.1m of WFD competitive grants available each year. Smaller funds include £50,000 Dwr Cymru Invasive Species fund High: Wide range of management actions can potentially be funded, including ongoing management & monitoring actions (12, 13, 14, 15, 16) where funding need is likely to be greatest. High: Applicable to a range of terrestrial and freshwater habitats for integrated management Mod: An explicit link to WFD within the Actions Database could be instrumental in unlocking funds for N2K.
Ecological compensation Low: Some limited pilot projects as well as conventional mitigation/ compensation funds under s106/CIL High: Case specific, though typically Carmarthenshire levy has raised £1m+ of funds to date High: Wide range of actions, including piloting and management planning (7,9) species and habitat management (12, 13) ongoing monitoring (17, 19) and infrastructure (23, 24, 25) Mod: Typically local metapopulations or equivalent habitat types Mod: Potential applications at landscape/ metapopulation scale (agricultural land) Environmental bonds Low: No current biodiversity-related green bonds Low: Not currently in operation. Mod: Management of habitats and species (12, 13); investment costs Low: Limited in their field of application. Largely applicable to new extractive industries, not restoration or mitigation of previous impacts Low: Further work needs to be done to understand how and whether environmental bonds might work in practice Loan finance Unknown Mod: Loans available to SMEs with environmental focus from Finance Wales and Welsh Council for Voluntary Action. Size of loan available is dependent on the facility used. Can range from small (<£10k) to medium (>£250,000) Mod: Generally limited to ongoing management of habitats/species and one-off investments, although these must be in relation to profit generating activities Mod: Dependent on facility being used. Low: Due to the need for loan repayment, applicability to N2K management needs is likely to be low. Likely to be most relevant when considered in tandem with marketed products Marketed products Mod: A range of environmentally sustainable marketed products are produced in Wales, although the extent of use in relation Mod: The size of conservation finance generated / management actions delivered is commensurate with the current scale of use Mod: Supports direct management actions but funds can be used to finance a wider range of actions Mod: Agricultural and forestry land-uses, as well as fisheries are the primary areas of opportunity. Notable Mod: Opportunities will be limited to where site characteristics are appropriate and commercially viable
to N2K is not clear and likely to be modest transaction costs and commerciality issues products can be produced Nutrient offsetting Low: Handful of initiatives Low: Pembrokeshire pilot scheme equates to £150,000 of funding to support range of activities Mod: 7 actions can be funded, including habitat management schemes and provision of services (12, 13, 16) and investment (20, 22, 23) Mod: Focus on water bodies and adjacent habitats. Areas of opportunity are typically those with specific pollutant issues Low: Further work needs to be done to demonstrate the general efficacy of offsetting measures PES Low: PES are not currently used in Wales, other than through the publicly funded land management programmes such as Glastir Low: The scale of funds raised will be commensurate with individual contracts. In the short term these are likely to be relatively small High: A wide range of management actions can potentially be funded, including the 3 ongoing management & monitoring actions (12, 15, 18) where funding need is likely to be greatest Mod: There are a number of potential restrictions, most of which effect the ease of use and implementation. Key restrictions are the ability to use PES for multiple ecosystem service delivery and the scientific uncertainty of the effect of actions on service delivery Mod: Private PES is currently an untapped approach. However in the short term, scope for use is likely to be limited to individual pilot schemes. Potential is likely to increase over the medium term Visitor payback Low: Applied in a range of settings but no specific examples of N2K application Low: Funds are discretionary and thus usually small-scale High: A wide range of actions relating to management planning and ongoing management (10, 12, 13, 16) education and investment (21, 22, 24, 25). May require linkages with visitor experiences / interests Mod: Potential application to a range of ecosystems , although usually dependent on visitor access Mod: Good potential for development of webapp schemes around an ecosystem services approach