The UK Infrastructure Bank has announced that it intends to commit £12m to support a nature restoration project in the Scottish Highlands and Islands.
The bank will provide a short-term bridging loan facility to support Highlands Rewilding’s acquisition of the Tayvallich Estate - a 1,300-hectare estate in Argyll.
Representing the bank’s first deal exclusively in Scotland, the project aims to provide new data and understanding on the restoration of Scotland’s ecosystems. These new insights are expected to inform more effective land management for biodiversity, which in turn should support the growth of natural capital markets.
The finance is expected to enable the restoration of temperate rainforest on the estate, which, once restored, can absorb carbon dioxide, removing it from the atmosphere.
The loan will let Highlands Rewilding move to further rounds of funding with potential investors, with a view to developing new natural capital business and revenue models on the estate.
John Flint, chief executive of the UK Infrastructure Bank, said: “The Highlands Rewilding project on the Tayvallich Estate has exciting potential for climate, biodiversity and economic growth benefits, and I am pleased we are able to provide short-term financial support.
“The bank’s investment is intended to support the development of the science, data and understanding needed to deliver high integrity natural capital markets, in line with our mission to boost the innovative infrastructure technologies which will be essential to achieving net zero.”
Dr Jeremy Leggett, chief executive and founder of Highlands Rewilding, said: “We will be working hard to turn this money into a significant scaling of nature-recovery, one congruent with the ambitious targets many governments, including the UK’s, set in the recent global biodiversity treaty signed in Montreal.”
In addition to its climate change impact, the project also has the potential to bring benefits for regional and local economic growth, through eco-tourism and joint community ventures.
A spokesperson for Tayvallich Initiative, a community initiative working to secure affordable housing, local jobs, farming and nature restoration across the area, said: “As a proactive community, Tayvallich looks forward to working with our new neighbour Highlands Rewilding to address our most pressing issues, including affordable housing and facilitating options for younger people to live and work in the area.
“Tayvallich Initiative and Highlands Rewilding are making good progress in developing a Memorandum of Understanding as an initial step in working together towards those objectives.”
The UK Infrastructure Bank opened for business in June 2021 to help tackle climate change and boost growth across the UK.
It is wholly owned by The Treasury, but is operationally independent from government. The bank identifies, selects and assesses projects and approves them through its investment committee and board.
The commitment to lend is subject to satisfactory completion of due diligence and documentation.
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