DEFRA
March 2026 snapshotNATURE FOR CLIMATE FUND
Infrastructure and Construction
Record date: 31 March 2026
- Whole-life cost
- £1.3bn
- Published schedule
- 01/04/2020 – Low: 31/03/2026, Mid: 31/03/2025, High: 31/03/2026
- NISTA delivery confidence
- AMBER
- Senior responsible owner
- Deb Hankins
What the project is for
To support the government’s ambitions for net zero and environmental improvement, Defra established the five-year Nature for Climate Fund Programme to increase tree planting and restore peatland in England. Between 2024‑25, the Programme directly planted 7,162 hectares of tree planting (95% of the annual target). Up to 2024-25 the programme directly funded 23,526 hectares of peatland restoration (67% of the annual target), contributing to total national delivery of 21,186 hectares of tree planting and 26,426 hectares of peatland restoration over the period. The Programme was extended into 2025‑26, with peatland grants extended to 2026‑27, while Defra considers future delivery and funding arrangements. The new Trees Programme (non GMPP) is expected to reach completion in 2030.
Departmental delivery commentary
Compared to financial year 2024‑25 Q4, the SRO Delivery Confidence Assessment (DCA) rating at 2025‑26 Q4 decreased to Amber. This reflects a combination of near‑term delivery pressures and pipeline risks, despite strong historical performance and a positive long‑term outlook. Official statistics for 2024‑25 showed a significant year‑on‑year increase in tree planting, with 7,164 hectares delivered in England, the highest annual rate in over 20 years, demonstrating the Programme’s ability to scale delivery. Delivery confidence for 2025‑26 has reduced due to a contraction in the tree planting pipeline since Q3, driven by lower expected output from England Woodland Creation Offer and the Community Forests and weather‑related impacts earlier in the season. Uncertainty over funding going into the final year of delivery will also have impacted the tree planting pipeline This has resulted in forecast delivery of around ~6000ha for the year. Mitigations are in place, including strengthened resourcing, organisational restructuring and the transition to the successor Trees Programme, supported by an approved business case. The rating reflects short‑term uncertainty while longer‑term delivery confidence remains strong, underpinned by improved capability, new funding mechanisms and a clear delivery pathway.
Schedule
Compared to financial year 2024‑25 Q4, the project’s end‑date at 2025‑26 Q4 remained the same, following a one‑year extension that was agreed to enable the design and mobilisation of the successor Trees Programme. The extension provided additional time to put in place future delivery arrangements and secure the necessary approvals, while maintaining continuity of activity. The programme closed at the end of March 2026, with key transition milestones on track and no further changes to the end‑date anticipated.
Cost
Compared to financial year 24/25‑Q4, the project’s departmentally agreed Whole Life Cost at 25/26‑Q4 increased to £176.52m CDEL and £29.88m RDEL. This increase is due to an agreed extension to the Programme to allow for the development and transition to a successor Programme. The increase in Whole Life Costs reflects the extended duration of the Programme rather than any change in scope or increase in cost per unit, with underlying delivery costs and assumptions remaining unchanged.
Benefits
Compared to financial year 24/25‑Q4, the project’s departmentally agreed Benefits at 25/26‑Q4 remained unchanged. This is because the agreed outcomes, scope, and benefits methodology have not changed following the Programme extension, which was agreed to allow for the development of a successor Programme. The extension impacts the duration of delivery rather than the nature or scale of benefits, and no new evidence or methodological changes have been introduced that would materially affect the benefits valuation.