Scotland restored 15,448 hectares of peatland in 2025-26 and plans to relaunch Carbon Contracts in 2027-28

Last year's delivery

NatureScot's annual review for 2025-26 reports that the Peatland ACTION Partnership contributed to 15,448 hectares of peatland restoration, against a Programme for Government commitment of 12,000 hectares. The Scottish Budget for 2025-26 included £35.5 million for peatland restoration, a 32% increase on the year before. More than 105,000 hectares of damaged peatland have now benefited directly from Peatland ACTION restoration. The Scottish Government's Climate Change Plan 2026-2040 commits to restoring 400,000 hectares by 2040.

What comes next

• Funding. The Scottish Spending Review allocates at least £110 million to peatland restoration over four years, including £28 million for 2026-27. This is expected to support around 10,000 hectares of restoration and the design of over 12,000 hectares of projects for 2028-29.
• Carbon Contracts. The pilot allowed prospective Peatland Code project owners to sell a portion of their carbon credits to the Scottish Government at an agreed price. The review says the pilot will be reviewed, with a relaunch in 2027-28, and that work will continue with the Peatland Code to make applications more straightforward for landowners.
• Scotland's Peatland Standard. A consultation is planned, with publication in late 2026, followed by a revision of the Technical Compendium to match.
• Funding round. The most recent Peatland ACTION restoration fund deadline was 30 September 2026, for projects starting after 1 April 2027.

In September NatureScot also reported a small project at Creag Meagaidh National Nature Reserve where staff and volunteers restored eroded mountain peat by hand over 10 days, using wooden and coir dams where excavators were impractical.