The National Landscapes Association welcomes Welsh Government’s initiative to introduce Sustainable Investment Principles aimed at driving ethical and effective funding for nature recovery in Wales. These principles represent a significant step forward in recognising the importance of sustainable finance in addressing the biodiversity and climate crises.

We strongly endorse the Welsh Government’s emphasis on:

• Transparency and Integrity: Ensuring that nature recovery projects are independently verified, measurable, and free from greenwashing.
• Community Engagement: Placing local communities at the heart of decision-making and ensuring they share in the benefits of sustainable investment.
• Integrated Land Use: Balancing the needs of nature recovery with other priorities, such as sustainable agriculture and rural livelihoods.
• Equitable Benefit Sharing: Ensuring that investments deliver tangible benefits to public, private, and community stakeholders alike.

We urge the Welsh Government to take bold steps to ensure that these principles deliver meaningful outcomes for all stakeholders. Key areas for action include:

1. Empowering Communities and Small-Scale Projects
   Small-scale and community-led initiatives are vital to nature recovery but often face barriers to funding and market participation. The Welsh Government must provide tailored financial mechanisms, such as micro-grants and revenue guarantees, and invest in capacity-building programs to enable these groups to play a central role in Wales’ green finance ecosystem.
2. Ensuring Robust Governance and Oversight
   A strong governance framework is essential to uphold the principles of transparency and accountability. Establishing a dedicated oversight body will ensure that projects adhere to best practices, deliver long-term benefits, and avoid risks like greenwashing or double-counting of ecosystem service credits.
3. Driving Financial Innovation
   Wales must take the lead in developing innovative financial mechanisms to unlock new streams of private and public funding. Initiatives such as Payment for Ecosystem Services (PES), which are being implemented on a large scale both within the UK and internationally, provide valuable models and evidence that can inform this effort.
4. Aligning with Global and UK Standards
   By aligning its principles with emerging global frameworks, such as the Global Biodiversity Framework and the UK’s Nature Investment Standards Programme, Wales can strengthen its position as a leader in sustainable finance while ensuring consistency and credibility in its markets.