Financial Advice on Establishing a Nature SPV
Lake District National Park Authority, Westmorland and Furness District Council, Cumberland Council, the Cumbria Wildlife Trust and the Yorkshire Dales National Park were exploring the creation of a special purpose vehicle (SPV) to deliver nature credits. Their aim was to unlock private finance for nature restoration, initially focusing on Biodiversity Net Gain and Nutrient Neutrality, with potential to expand into other markets. To move forward, they needed expert financial advice on the implications, operating models, pricing strategies and factors affecting public sector partners.
The Role
31ten was commissioned to develop a financial model and provide strategic financial advice. This included evaluating the financial implications of different operating models, company structures and public sector accounting impacts.
As the project evolved, we also supported on broader discussions – helping partners explore the merits of a partnership approach, align on shared priorities and understand each other’s positions on key financial issues.
Key Outcomes
We developed a flexible financial model, built to accommodate evolving assumptions and future updates. With limited early-stage
data, we used hypothetical scenarios based on benchmarks to offer a clear, comparative view of potential SPV structures and associated risks.
Our insights were brought together in a final report, presented in a collaborative session with partners to gather feedback and refine recommendations. We also supported wider stakeholder engagement throughout.
The report helped partners navigate the emerging nature credit market, providing clarity and direction. Drawing on our previous experience, we proposed practical next steps – several of which were promptly adopted, including appointing a project lead and initiating early market engagement. Together our work enabled partners to successfully progress to the next step – developing a business case for investment.
