In Brief: Green Finance in the Context of Trees, Woods and Forests

The concept of green finance has been growing in importance in recent years. Recent research shows that to meet UK targets on woodland creation and management, a financing gap of £1.8 billion needs to be closed between 2022 – 2032. It is crucial to leverage private funding to close this gap as public funding is necessary but insufficient. This research examines the applications of green finance to trees, woods, and forests (TWF) in the UK, focusing on innovative financing mechanisms. It investigates how green finance is defined and identifies financial mechanisms that have the potential to increase private investment into the country’s TWF. It also outlines factors that contribute to the success and failure of these mechanisms.