THE Scottish government has approved one the largest Private Finance Initiative (PFI) schemes in Scotland’s history, with private firms investing £2 billion into the plans.

Government agency NatureScot will be creating 185,000 hectares of native woodland over the next 30 years.

NatureScot green economy director welcomed the arrangement, saying “we’re delighted to be working with these businesses to deliver scalable investment in our natural capital in Scotland.”

The PFI deal was also lauded by Biodiversity Minister and Green MSP Lorna Slater who claimed: “Leveraging responsible private investment, through valuable partnerships like this, will be absolutely vital  to meeting our climate targets and restoring our natural environment.

“Scotland is well placed to take a leading role by offering investors the opportunity to generate sustainable returns from the restoration and regeneration of our landscapes.”

Hampden & Co private bank Lombard Odier Investment Managers, and Palladium, will seek return on their capital through “offsetting” schemes, with companies having their emissions offset by paying others to plant trees or expand biodiversity on their behalf.

Offsetting remains controversial and many environmental campaigners are highly sceptical, with organsiations such as Friends of the Earth saying: “Carbon offsetting and biodiversity offsetting are no longer a distraction — they are a danger.” 

Greenpeace has described them as a “scammer’s dream scheme”.

Reacting to the news, former Scottish Green MSP and land reform campaigner Andy Wightman said: “If Hampden & Co, Lombard Odier Investment Managers, and ‘global impact’ firm Palladium are the answer to Scotland’s climate crisis, what on Earth is the question?”