In recent years, the debate around green finance has been highly polarised. For some, it’s a game-changer for nature restoration; for others, it’s little more than greenwashing or the commercialisation of nature.

At Loch Lomond and the Trossachs National Park Authority, we’ve been working for years now to untangle this complex issue. What we've found is that the truth lies somewhere between these extremes, and a more thoughtful, balanced approach is what’s needed: one that looks beyond the headlines and polarised discourse.

So why, you may ask, is a National Park Authority getting involved in such a divisive topic? Granted, we have no financial regulatory powers, nor are we here to tell landowners or businesses how to manage their finances. But we do have a clear role as a convener and facilitator for the National Park and for promoting nature restoration within it. What is certain is the urgency, and our commitment to delivering large-scale environmental recovery at pace.

While the figures may be debated, one thing is clear: achieving our ambitious nature restoration goals will require a dramatic increase in funding,both in scale and long-term predictability. Public funds alone won’t be enough. That's why it’s essential to explore innovative financial mechanisms, whether voluntary or mandated, that allow the private sector to contribute to protecting and restoring the ecosystems they benefit from. This is not just appropriate, it’s necessary.

We believe that a combination of public and private finance is key to meeting Scotland’s restoration targets. Green finance has the potential to be a central part of this, but it must be approached carefully. Every project needs to be designed to create tangible, lasting benefits. Yes, there are risks, and we must stay vigilant to avoid falling into the trap of schemes which are unethical and inefficient.

With COP29 focusing on finance for climate action, and Scotland’s Natural Capital Market Framework now in place, it’s clear that diversifying funding sources is crucial. These national and global initiatives, along with local efforts like the Scottish Land Commission’s new guidance on natural resource governance, send a clear message: green finance must be ethical, accessible, and informed by the needs of local communities. Everyone has a part to play in making this a reality.

As such, we have launched new guidance for projects in the National Park, designed to help landowners, developers, and communities navigate this space. With this guidance, we are playing our part in encouraging all parties to consider the risks and opportunities that green finance projects may bring, including biodiversity, climate resilience, food supply, water management, and community engagement. We believe that this promotes an integrated, proportionate approach.

Green finance isn’t a magic bullet. It’s not a one-size-fits-all solution. Done right, it has the potential to deliver environmental, social, and economic outcomes that are sustainable and fair. But it must also support local communities, ensuring they reap the benefits of restoration alongside the environment. It is only by working together, can we ensure it’s done in a way that benefits both nature and people.

For those within the National Park considering a green finance project, we encourage you to use our guidance and reach out for advice on maximising outcomes for both nature and people.

Simon Jones is Director of Environment & Visitor Services, Loch Lomond & The Trossachs National Park Authority

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