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Building a Peatland-Positive Future: Funding and Policy Updates for 2026–2030

England’s peatlands are on the brink of transformation. These landscapes hold the key to cutting greenhouse gas emissions, boosting biodiversity, and building farm resilience. With the Government’s Environmental Improvement Plan (EIP) 2025 setting bold restoration targets and new funding streams announced for 2026–2030.


For more information, see the Defra Lowland Peat Newsletter



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The Government’s Environmental Improvement Plan (EIP) 2025, published on 1 December, aims to restore around 280,000 hectares of peatland in England by 2050. This pledge is vital for addressing climate change, boosting biodiversity, and promoting sustainable farming.


Why Peatlands Matter


Peat soils store vast amounts of carbon, but when degraded, they release greenhouse gases. Restoring and responsibly managing these landscapes is critical to achieving up to 23 MtCO₂e savings by 2050. The EIP outlines a multi-pronged approach combining legislation, funding, and innovation.


Key Actions from EIP 2025

  • Ban on peat sales when parliamentary time allows.

  • £85 million investment by 2030 for restoration, water infrastructure, and paludiculture trials.

  • Restore 40,000 hectares by April 2030, supported by:

    • Nature for Climate Peatland Grant Scheme (until March 2027).

    • Landscape Recovery and Countryside Stewardship for long-term projects.

  • Mobilise private investment and voluntary carbon markets (e.g., Peatland Code).

  • Peatland Restoration Register to launch in 2026, improving transparency and planning.


Funding Opportunities for 2026–2030


Defra has announced several schemes to continue to support progress:


1. Lowlands Water Programme


  • Discovery Grants: Support partnerships to develop water management plans for raising water tables.

  • Implementation Grants: Fund infrastructure and projects to enable sustainable water table management.

  • Three routes:

    • Route 1: Implementation (2026–2030)

    • Route 2: Discovery (2026–2028) → Implementation (2028–2030)

    • Route 3: Implementation (2028–2030)


Think consortium—landowners, farming groups, eNGOs, IDBs, and local authorities working together.


2. Paludiculture Exploration Fund (Round 2)


Focused trials to advance wet farming and market readiness:

  • Theme 1: Wetland Crops – Typha, Common Reed, Sphagnum (machinery, harvesting, product development).

  • Theme 2: Conventional Crops at Higher Water Tables – crop selection, trial methods, machinery adaptation.


3. Community Engagement Project


Continued support for peatland networks and paludiculture-specific events.


4. Sector Capacity Grant Scheme


  • Up to £20,000/year for skills development, workforce growth, and increased restoration delivery.

  • The application window is scheduled to open in June 2026.


Live Consultations


The Environment Agency are running two important consultations on water:


Both have relevance for re-wetting England’s peat, click on the links to get involved.


Next Steps


  • All schemes are subject to Defra approval processes.

  • Pre-application webinars in February for more details.

  • Start forming partnerships and planning projects now.


Why This Matters


These combined actions—policy commitments, funding streams, and collaborative approaches—signal a continued shift towards integrated peatland restoration. By aligning farm resilience, climate goals, and innovation, they help us create landscapes that benefit both nature and agriculture.


Want to get involved?

  • Prepare for upcoming grant schemes.

  • Join consultations to shape water policy.

  • Explore paludiculture opportunities for sustainable farming.

 


If you have any questions, please contact peatlandrestoration@defra.gov.uk.


If you need help finding the right contact or partnership opportunities, email us at paludiculture@niab.com and we’ll do our best to assist.

 
 
 

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