Investing in nature can help secure our water future – but we need to make better use of the opportunity

News Article

Nature Finance within the Water Industry National Environment Programme (WINEP)

England’s rivers, lakes and wetlands are under increasing pressure. Climate change is bringing more frequent floods and droughts, while pollution and habitat loss continue to damage freshwater ecosystems. At the same time, water companies are preparing to invest billions of pounds to improve the environment.

This raises an important question: are we making the most of this investment?

In a new policy brief our researchers argue that the Water Industry National Environment Programme (WINEP) could do much more to support nature recovery while delivering better outcomes for people and the environment.

WINEP is the mechanism through which water companies invest in environmental improvements as part of their regulatory obligations. Between 2025 and 2030, it will direct more than £22 billion towards improving the water environment. This makes it one of the largest sources of environmental investment in England.

Much of this funding is essential and will help tackle long-standing environmental problems. But there is also an opportunity to invest more strategically in nature itself.

Healthy rivers, wetlands, woodlands and peatlands are not just valuable for wildlife. They also help clean water, reduce flooding, store carbon, improve resilience to drought and create places where people can enjoy nature. Investing in these natural systems can complement traditional engineering solutions while delivering a wider range of benefits.

Nature-based solutions are already part of WINEP, but they remain a relatively small proportion of overall investment. In our policy brief, we suggest ways this could change.

First, we recommend recognising healthy ecosystems as essential infrastructure, rather than treating them simply as environmental enhancements. Looking after the natural systems that regulate water can reduce risks and costs over the long term, while making our landscapes more resilient to climate change.

Second, we argue for a more joined-up approach to planning. Rivers do not stop at administrative boundaries, and neither do many of the challenges they face. Coordinating investment across entire catchments would allow water companies, regulators, farmers, local authorities and conservation organisations to work towards shared outcomes.

Finally, we recommend that investment decisions take fuller account of the multiple benefits that nature recovery provides. Traditional appraisal methods often focus on a narrow set of costs and benefits, making it harder for projects with broader environmental and social value to compete. Better ways of valuing these wider benefits would support smarter investment decisions.

None of these changes requires starting from scratch. WINEP already provides a strong foundation, and many organisations are developing successful examples of catchment-scale and nature-based approaches. The next step is to embed these approaches more consistently across the programme.

As governments seek ways to meet ambitious targets for clean water, climate resilience and nature recovery, every pound invested should deliver as many benefits as possible. WINEP offers a rare opportunity to do exactly that. By putting nature at the heart of water management, we can improve the health of our rivers and landscapes while building a more resilient future for everyone.

You can read the full policy brief for more detail on our recommendations and the evidence behind them.