Defra tree and peatland goals missed, watchdog says

The National Audit Office has raised concerns over the UK government’s Nature for Climate Fund Programme, warning that despite some progress, Defra has fallen short of its tree planting and peatland restoration targets.

Less than 15% (14.9%) of England’s land is covered by trees, with just 10% as woodland – one of the lowest rates in Europe – and about 80% of the country’s peatland is in “dry or degraded” condition, contributing to roughly 2% of national greenhouse gas emissions.

See also: Tree planting targets unlikely to be achieved, says watchdog

Running from 2020-21 to 2024-25, the programme aimed to plant 28,728ha of trees and restore 35,000ha of peatland.

However, the actual delivery reached just 15,268ha of trees and 23,526ha of peatland, achieving roughly two-thirds of the peatland target (67%) and just over half (53%) for trees.

Out of a £924m budget, £707m was spent, leaving a 24% underspend over the initial five years, described by the National Audit Office (NAO) as a “slow start”.

The NAO, which is the UK’s public spending watchdog, attributes this to capacity constraints, delays, and lower-than-expected demand.

Defra, which oversees the programme with delivery partners including the Forestry Commission and Natural England, has made only limited progress in tackling barriers such as sector skill gaps, contractor shortages, and unclear guidance for landowners, the report [opens in PDF] says.

Meanwhile, monitoring of environmental outcomes, including carbon capture, biodiversity gains, and ecosystem benefits, remains patchy, making it difficult to judge the programme’s true impact or value for money.

Private finance contributions have also been minimal, with only £11m secured in match funding.

And the report notes that complex processes and perceived risks continue to deter private sector participation.

Greater activity needed

While the programme has extended into 2026-27 and Defra is planning tree planting and peatland work to 2030, the NAO warns that achieving the government’s long-term targets – including 16.5% tree canopy and 280,000ha of restored peatland by 2050 – will require far greater annual activity, stronger prioritisation, and improved oversight.

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.

“To ensure momentum doesn’t stall, Defra should apply what it has learned about the most effective use of its funding, to maximise the climate and biodiversity benefits and attract private investment.”

A Defra spokesman said: “Tree planting rates in England are now at their highest level in over 20 years.  

“As the report shows, the Nature for Climate Fund directly contributed to 6,324ha of tree planting in 2024-25, marking a 30% increase from the previous year.

“We are committed to going further and have allocated £1bn towards tree planting and support to the forestry sector.”