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Rather than extracting wealth, this partnership will deliver responsible investment in both the pilot project areas and Scotland more widely.

Financial matters relating to the pilot cannot be determined until detailed investment cases for projects have been discussed and produced with land managers.

The Memorandum of Understanding (MOU) does not confer any guarantees or preferred status to the partners and allows NatureScot to work and enter agreements with other parties, both in the locations identified in the MOU and across Scotland. MOU signatories will not have exclusive access to land managers and external parties will still be able to submit applications for public funds and grants. The usual processes and policies for public grants will apply.

I refer the member to the answer to question S6W-15868 on 24 March 2023. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers .

I refer the member to the answer to question S6W-15876 on 24 March 2023. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers .

The Scottish Government has increased public investment and support in our natural capital through a variety of methods. This includes the £65 million Nature Restoration Fund, and the Facility for Investment Ready Nature in Scotland (FIRNS) that was launched in February this year. However, the Global Biodiversity Framework that was agreed at COP15 last year identified leveraging responsible private finance as a key target, and in Scotland alone it is estimated that there is a finance gap of £20 billion to meet nature-related outcomes.

For the purposes of this agreement, NatureScot entered into discussions with Hampden & Co., Lombard Odier Investment Managers and Palladium and mutually agreed that a Memorandum of Understanding would best define the ways of working and respective roles of parties, as is commonplace.

The Memorandum of Understanding (MOU) is legally binding between the parties (NatureScot, Hampden & Co., Lombard Odier Investment Managers and Palladium). Scottish Government Ministers are not party to the MOU, but are aware of the work NatureScot are undertaking as part of the agreement.

I refer the member to the answer to question S6W-15876 on 24 March 2023. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers .

As the intention is to work with existing land owners, NatureScot do not anticipate that the investment will contribute to increased land values as a result of the sale or purchase of land. However, investing in natural capital may increase land values as it improves the condition of the land and subsequently increases the potential for land managers to generate revenue from the sale of ecosystem services. This is an unavoidable outcome of delivering our nature restoration targets.

Community benefits, such as those referred to, will be explored during the design phase of the project.

The Memorandum of Understanding has no fixed term and can be terminated at any time by NatureScot.

The partnership will seek to deliver direct community benefit as a result of the investment, in line with the expectations of the Scottish Government’s Interim Principles for Responsible Investment in Natural Capital. This will include full consideration of community wealth building opportunities and exploring potential ways the investment could support more diverse land ownership, drawing on current and emerging advice from the Scottish Land Commission. No assessment has been completed at this stage as the project partners are in ongoing dialogue about how the investment model will work. However, assessments will be published after completion of the project design phase.