Draft Marine and Coastal Restoration Plan

Closes 19 Oct 2025

This service needs cookies enabled.

Theme 3: Funding and finance

Objectives

1. Address the funding gap for project development and groundwork phases

  • Support to develop innovative funding streams (public and private sector)
  • Highlight existing public and private sector funding streams such as SMEEF that already target this
  • Promote the importance of funding project development activities to a wider range of funders
  • Work with regulators and other public bodies to de-risk project development (for example by providing more clarity on costs and timelines for licenses and consents)

2. Continue investment in pipeline of projects

  • Maintain support for SMEEF for duration of this first plan

3. Ensure private sector investment can support restoration at scale but does not bypass local communities

  • Explore the potential for a matchmaking service linking businesses to projects
  • Use SMEEF to leverage funding into community-led projects

Objective 1 – Address the funding gap for project development and groundwork phases

Marine nature restoration is a pioneering sector, which will require public and private investment and funding to continue developing. From discussions with restoration groups, a clear picture has emerged that there is a funding gap in the initial stages of project development, which presents a key barrier to more initiatives coming forward.

Projects receive support from a range of funders, however these tend to focus on capital and resource funding of ‘on the ground’ restoration. Prior to restoration activity happening, there is often about a two year period of project development during which site selection, baseline surveys, engagement with local communities, recruitment, and securing appropriate licenses and consents take place. These activities are critical for successful restoration.

Some funding bodies, such as SMEEF, already offer grants that target this project development phase, and we are keen to work with other funders (public and private) to see where there is appetite to develop innovative funding streams. We would particularly welcome initiatives on similar models to the National Heritage Lottery Grant for Landscape Connections, which comprises two year development coupled with eight year project implementation funding.

Alongside an ambition to encourage funders to expand and diversify the types of funding available, restoration groups have highlighted that reducing costs (and uncertainty) should be a key part of encouraging more projects to come forward. To support this we will work with regulators and other public bodies to explore ways to ‘de-risk’ project development. More clarity on the costs and timelines for licenses and consents required will enable projects to better plan for these expenses.

Greater transparency will raise awareness among potential funders of the cost of restoration. As part of this we also want to encourage a broader understanding of what ‘success’ looks like, and the value in being able to learn from situations where things do not work out as intended.

More on SMEEF

SMEEF is an innovative nature finance vehicle that facilitates investment in marine and coastal enhancement in Scotland. Through donating to SMEEF, businesses and organisations that operate in Scottish waters are able to voluntarily re-invest in the health and biodiversity of our seas. From these donations, grants are then allocated on a competitive basis to enhancement focused projects.

Formally launched in May 2022, SMEEF has so far secured and distributed more than £3.8m to around 54 restoration and enhancement projects in Scottish coasts and seas. 

The first round of grants from 2022-24 focused on project development and capital needs (such as purchasing equipment). From 2024 onwards, funding is allocated across five different areas: seabed, coastal, wider seas, seabirds and research.

SMEEF receives a core funding contribution for staff costs from Scottish Government and Crown Estate Scotland, and is hosted by (but independent from) NatureScot.

Objective 2 – Continue investment in pipeline of projects

In order to scale up restoration we need a thriving grassroots restoration sector that can present ready-for-investment projects to potential funders, especially private sector funding. SMEEF is a key pipeline funder of enhancement projects which has leveraged millions in private sector donations at relatively low cost to the public sector.

We recognise the important role the fund is playing in supporting community-led restoration across Scotland, and will maintain an element of core funding for the fund for the next five years (subject to budgetary approvals), or until the next review cycle of the Marine and Coastal Restoration Plan. At its inception, there was an ambition for SMEEF to become self-sufficient over time, so we will keep the option of tapering the core funding over time under review.  We will also continue to be an active and engaged partner on the SMEEF Steering Group.

Objective 3 – Ensure private sector investment can support restoration at scale but does not bypass local communities

Restoration can bring ecological benefits and opportunities for green jobs and skills to rural and coastal areas. It has the potential to contribute to local community wealth building, especially when paired with investment.

We are seeing growing interest from the private sector, particularly renewable energy and infrastructure developers, in funding and undertaking restoration. This could offer exciting possibilities in the future for restoration at scale, and it is essential that we match this momentum to the expertise of community-led projects already working in restoration.   

We want to encourage private sector organisations and institutions to tap into local projects and existing mechanisms for distributing funding; for example through SMEEF, which already has an established governance structure, grants panel, due diligence and ethical contributions policy.

An idea raised at the advisory group workshop that we are keen to explore is to develop a “match-making service” that can connect local and regional businesses to restoration projects. This would ensure benefits and participation in restoration are realised within local communities. It could also help expand the range of sectors engaging with, and in restoration initiatives.

Links with wider areas

There are several pieces of work underway that, if realised, could open up new avenues for private sector funding towards restoration, through the planning and consenting processes for activities and developments in the marine environment.

In terrestrial planning, the National Planning Framework 4 mandates that all development contributes to enhancing biodiversity, including restoring degraded habitats. For major developments, this means demonstrating that biodiversity will be in a better state post-development than before, including enhancing nature networks. Local development proposals are also required to include measures for conserving, restoring, and enhancing biodiversity.

Work is underway to develop and understand what a nature positive approach could look like for the marine environment and explore approaches to stimulate private investment towards nature positive outcomes.

We will also consider how developing policies relating to strategic compensation could align with this plan.

7. On a scale from 1 to 5, how would you prioritise each of the objectives in this theme?
8. Please choose for each action set out in this theme whether it should be: Included in this plan, reserved for the future, or not included.
9. Is there any further information you would like to share with us on the objectives or actions in this theme?

This could include your reasons for selecting the answers to the previous two questions, or any further reflections on the overall content of the theme.