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Natural Environment Impact Fund (NEIF) Outline Business Case - BE0145

This project is to present a Strategic Outline Case (SOC) and Outline Business Case (OBC) for a blended funded facility to catalyse investment in natural capital. The government’s 25 Year Environment Plan commits to exploring means of raising private sector investment in natural capital and this project contributes to this process. The project looks at the rationale for the public sector’s support to enable private investment in natural capital and identifies types of natural capital project and models of investment where public intervention is expected to be most fruitful in the near term.
The 25 Year Environment Plan commits to explore the potential for a natural environment impact fund and to look at innovation in designing and implementing projects that can improve the natural environment and generate revenue to pay for project costs. To this end, the objective of this project are to:

• Develop a Strategic Outline Case for a natural capital finance facility, consistent with HMT Green Book guidance, setting out:
- the rationale for government intervention to increase and sustain private investment in projects that deliver natural capital outcomes, in order to support the goals of the 25 Year Environment Plan;
- success criteria for project and finance models that government intervention could support;
- strategic options for project and finance models, each with SWOT assessments;
- an assessment of the matching between project and finance models, and how funding could be deployed to develop sustainable investment markets in different projects.

• Building on the work to develop a SOC, develop an Outline Business Case, for a natural capital finance facility, consistent with HMT Green Book guidance, setting out:
- Estimates of the financing needs of promising project models through an assessment of their costs and benefits;
- An assessment of the market failures restricting private investment in natural capital assets and options for addressing these;
- An assessment of finance facility options in terms of structure, scale, focus and value for money.
Project Documents
• FRP - Final Report : 1. Strategic Outline Case   (2568k)
• FRP - Final Report : 2. Outline Business Case   (1190k)
• OTH - Other : 3. CBA Model   (772k)
Time-Scale and Cost
From: 2017

To: 2018

Cost: £74,997
Contractor / Funded Organisations
Vivid Economics Ltd
Economic Research