The Green Finance Knowledge Gap

In April 2024 The Green Finance Topic Advisory Group hosted a virtual workshop to examine the knowledge gaps that prevent the expansion of high-integrity, fair Green Finance in UK farming and land use – and examine how LUNZ can support the growth of private investment in UK nature projects.

You can read the full report by following the link on the right, or read on for the conclusions from the workshop:

• Farmers and investors have different but overlapping needs which need to be bridged. The LUNZ Hub has a clear role here both via the Green Finance Topic Advisory Group (TAG) and the other Advisory Groups which can reflect the farmer perspective.
• Whilst the workshop identified various research gaps, it also highlighted the importance of utilising existing knowledge and understanding rather than initiating new studies.
• A recurring theme is the need for universal standards or codes to foster clarity, consistency, integrity and bring down costs for all players. Agriculture must learn the lessons from other Green Finance markets where the establishment of incompatible classification systems led to a fragmentation and weakening of the markets.
• From the institutional investors’ side, the priority should be put on establishing  standardisation and ratings that are needed in order to generate information required to make the assessment of a project meaningful for investment purposes.
• From the farmers’ side, the priority should be put on establishing trust through better communication of the potential benefits of engaging in and consequences (missed opportunities) resulting from not engaging in GF, and more meaningful interactions with the financial sector, regulators and governing bodies. It is essential to improve communication on what is expected of the farmers, and on broader environmental issues. The lack of financial and environmental literacy tends to cause a terminological barrier between farmers and financial industry/regulators and needs to be addressed.