Peatland and tree schemes improving — but 'step-change' needed to hit targets

Farmers and landowners are being urged to step up tree planting and peatland restoration as a new report warns progress is still falling short of long-term targets.

England remains one of the least wooded countries in Europe, with just 14.9% tree cover, underlining the scale of the challenge.

The findings, from the National Audit Office (NAO), assess Defra’s Nature for Climate Fund Programme — a key part of the shift towards environmental land management as farm support moves away from direct payments.

The report found the programme has helped drive increases in activity, but warned a further “step-change” is needed to meet government ambitions.

Progress has faltered at times, with uncertainty over future funding slowing momentum and creating hesitation across the sector.

Early delivery was also held back by capacity constraints within Defra and its partners, alongside a lack of alignment with wider policy.

Despite this, tree planting rates have risen significantly compared to pre-2020 levels.

In 2024–25, 6,324 hectares of tree planting were directly funded — below the 7,500 hectare annual target, but still a marked increase on previous years.

This highlights both the progress made — and the gap still to close.

Over the five-year period, the programme funded 15,268 hectares of planting, just over half of its target.

Across England as a whole, total planting reached 21,186 hectares — around three-quarters of what was planned.

Peatland restoration has followed a similar pattern.

The programme funded 23,526 hectares of restored peatland, around 67% of its target, while total restoration reached 26,426 hectares.

The NAO warned the programme has missed key targets and suffered from early delays, with stakeholders reporting slow processing of grant applications and land use changes.

Even so, Defra expects the scheme to deliver strong value for money, pointing to benefits such as carbon sequestration, improved air quality and biodiversity gains.

A full evaluation is due later in 2026.

The NAO said there are clear opportunities to increase participation, particularly by reducing barriers to entry and attracting more private investment.

It also called on Defra to improve how it monitors outcomes and to better prioritise competing objectives, such as carbon reduction, timber production and nature recovery.

The watchdog urged the government to take a more proactive approach to managing tensions between environmental ambitions and development pressures on land.

It also recommended revisiting long-term targets to ensure they remain realistic and achievable.

Gareth Davies, head of the NAO, said: “Defra’s Nature for Climate Programme has helped to significantly increase tree planting and peatland restoration in England.

“In order to ensure momentum doesn’t stall, Defra should apply what it has learned… to maximise the climate and biodiversity benefits and attract private investment.”

With environmental schemes set to play a growing role in farm incomes, ensuring these programmes deliver at scale will be critical for both the industry and the UK’s climate goals.