Business
Recognising natural capital
Natural capital must be recognised as critical national infrastructure to futureproof the economy.
9 January 2026
Main image: Aerial view of Woodhead Reservoir, Glossop during a drought
Government remains off track to meet its environmental commitments and its actions now will determine whether or not key targets for biodiversity and the protection of land and sea by 2030 will be met.
This is the headline finding of the the latest progress report by the Office for Environmental Protection (OEP), published today (13 Jan).
Covering the 12 months up to the end of March 2025, this is the fourth statutory report on government’s progress in delivering its Environmental Improvement Plan (EIP).
‘Our report comes at a time when government is focused on economic growth. Nature has a role to play here, an important role. It is not a blocker to growth, but it enables, drives and protects economic growth.
‘Nature’s recovery is a pre-requisite of prosperity, health and well-being. Recent analyses, led by the Cabinet Office, of the chronic risks facing this country are sobering. They talk of accelerating climate change, biodiversity loss, and pollution having cascading, compounding impacts, which will amplify threats to national and international security, the economy and communities.
‘It is in that context we provide this latest annual assessment of how government is working towards improving the natural environment, and so towards a more prosperous and more secure future.
‘We have previously called for government to speed up and scale up its efforts if it is to achieve its environmental ambitions and commitments, and we renew that call now. While we have seen more progress in this year than in the previous reporting period, it was not the step change needed.
‘Government remains largely off track to meet its environmental targets and obligations, including legally binding biodiversity targets set under the Environment Act and the UK’s twin 30 by 30 commitments both for protected areas and for restoring degraded ecosystems.
‘The government must now decide whether or not it is going to meet those targets. What happens now matters.’
DAME GLENYS STACEY
Chair of the OEP
The Government published a revised EIP last month (December 2025) – too late for the OEP to consider it as part of this reporting cycle.
The OEP’s initial assessment of the revised EIP (‘EIP25’) has been published alongside this progress report.
‘Our initial view is that much of the formal advice we provided for the review of the EIP has been taken on board.
‘The new EIP25 is a more coherent plan and offers more transparency and an increased focus in delivery.
‘Delivering all that is planned would improve substantially the chances of government achieving its environmental ambitions.
‘However, there are places where EIP25 could be stronger still. Some commitments remain broad statements of intent. There are gaps in the plans to monitor progress. Resources, particularly for higher tier agri-environment schemes such as Landscape Recovery, appear as stretched as ever.
‘Alongside the new EIP, government continues to work on a long-awaited Land Use Framework, a new Farming Roadmap, Food Strategy, Circular Economy Strategy and a UK Marine Strategy, all alongside significant planning and water sector reform.
‘There is now a real opportunity for all of these reforms to complement the revised EIP, to provide coherence from the strategic policy level through to local decision making. As we have long said, the most important thing now is effective delivery of the plan.’
DAME GLENYS STACEY
Chair of the OEP
The report found that good progress has been made towards 12 of 43 individual targets and commitments assessed. Mixed progress has been made towards 19 and limited progress towards 12.
Of these 43 targets and commitments, 13 are set under the Environment Act 2021 (EA21 targets).
For these 13, the OEP assessment is that good progress has been made over the annual reporting period towards four, mixed progress towards seven and limited progress towards two.
There was good progress in creating and restoring wildlife-rich habitat and in reducing phosphorus loadings from treated wastewater. There was limited progress in improving the condition of Marine Protected Areas and in reducing residual waste.
‘The government is wildly off track when it comes to progress on nature protection. Even on its own legally binding targets to protect 30% of land and sea by 2030, the government is failing – and time is running out.
‘Progress on ocean protection is particularly slow. On paper, the UK has a large network of marine protected areas and powers under the Fisheries Act to enforce proper protection. In reality, many sites remain open to destructive industrial fishing, leaving important habitats and the incredible array of wildlife they support vulnerable. Protection in name only is no protection at all.
‘A healthy natural environment is essential for economic growth, underpinning food security, flood protection, climate resilience and long-term prosperity. When the government has acted with ambition, such as protecting sand eels, it has proven that rapid, science-led action is possible.
‘That same urgency is now needed across all UK land and sea, or the government risks breaking the law and leaving a damaging legacy for all future generations.’
CHRIS THORNE
Senior oceans campaigner at Greenpeace UK
When compared with the OEP’s 2023/2024 progress report, a higher proportion of targets and commitments show good progress and a lower proportion show limited progress.
There has been improvement in the goal areas of clean air, managing exposure to chemicals and pesticides and climate change mitigation, where the OEP’s assessment of progress has moved from limited to mixed.
Clean air showed more progress due to the positive steps made to reduce vehicle emissions. These include reinstating the 2030 phase-out date for new petrol and diesel cars and increasing funding for active travel.
Chemicals showed more progress due to actions to eliminate the use of PCBs and other specific chemicals.
‘The watchdog’s warning should ring alarm bells across Government, but sadly it comes as little surprise. Nature has been allowed to descend into freefall, sidelined in political priorities as little more than a ‘nice to have’.
‘Despite the Government’s own assessments, including the Dasgupta Review, making the case time and again how central nature is to our economy, the damaging idea that nature is a ‘blocker’ to growth remains entrenched at the top of Government.
‘Halting nature’s decline by 2030 should have been the bare minimum delivered this decade. Yet with the threat of failure now looming, it is clear that without nature’s restoration the UK’s ability to protect communities and the economy from a changing climate and extreme weather is dangerously off track.
‘The Government has run out of time for warm words and watered down plans. Ministers must urgently scale up investment and critically shift towards an ecosystem-based approach to nature recovery.’
DR AMY MCDONNELL
Co-director of the Zero Hour climate and nature campaign
The OEP assessed 59 recent environmental trends; the report shows that 24 are improving, 11 are static and 16 are deteriorating. Eight were not assessed due to data availability. These proportions are broadly similar to last year.
When compared with the OEP’s 2023/2024 progress report, the two goal areas of reduced risk of harm from natural hazards and enhancing beauty, heritage and engagement with the natural environment have fallen back from showing mixed trends to deteriorating trends dominating.
The estimated number of properties at risk of surface-water flooding has increased along with a decrease in the condition of flood or coastal risk management assets. Wildfire incidents continue to increase.
Engagement with nature amongst adults and children has decreased and is very low compared with other countries. This is particularly concerning given the current crisis in childhood vulnerability, and the importance of a connection with nature for a strong start in life.
According to the report, government is largely on track towards meeting five of its 43 individual targets and commitments, partially on track towards meeting 16 and largely off track towards meeting 21. The prospects of meeting one target could not be assessed due to a lack of sufficient evidence.
For the 13 EA21 targets, the government is largely on track for meeting three, partially on track for five and largely off track for five.
When compared with the 2023/2024 progress report, a slightly lower proportion of targets and commitments are considered largely on track and a slightly higher proportion largely off track.
In summarising progress at the level of the 10 goal areas of the EIP23, the OEP has concluded that in three goal areas government is partially on track, and in seven government is largely off track.
Natural capital must be recognised as critical national infrastructure to futureproof the economy.
New plan sets course for cleaner rivers and air, as well as more nature and wildlife in England.
Britain will be hit by food shortages if we don’t act now on climate, MPs warned.
How reaching net zero before 2050 would strengthen domestic economies & transform global communities.
