Background The Big Nature Impact Fund (BNIF) is a policy framework designed to create a public-private blended impact investment fund.

It aims to increase private sector investment in domestic nature recovery projects - particularly woodland creation, peatland restoration and habitat banks to support Biodiversity Net Gain (BNG) implementation.

It will also develop a track record for private investment in nature which others can build upon.

By investing on a repayable basis into a private sector fund, Defra aims to show market actors that HMG is committed to scaling up nature-based investment and demonstrate the potential for achieving a financial return on investment.

BNIF's fund manager was announced as Federated Hermes and Finance Earth in November 2022[1] with Defra committing £30m seed capital to act in a 'first loss' position.

Federated Hermes and Finance Earth will invest blended public-private capital through BNIF, on a repayable basis, into a portfolio of nature projects that can generate revenue from ecosystem services and green enterprises to support the development and delivery of such projects.

BNIF will only invest in England but will be part of a UK-wide investment strategy managed jointly managed by Federated Hermes and Finance Earth.

DRAFT - SPECIFICATION Research Requirements The aim of this contract is to: i. design a robust yet proportionate and reasonable evaluation framework in line with HMT Magenta Book guidance and relevant supplementary guidance to enable us to understand the success of BNIF as a policy intervention; and ii. undertake the initial process evaluation to explore the initial set up of the fund and collect and present baseline data to enable us to track progress on tackling market failures, for example around investor confidence.

The contract is made up of the following 2 work packages: Work Package 1: Developing the Evaluation Framework Work Package 2: Carry out an initial process evaluation Project Team We anticipate that the contractor should have experience in carrying out successful, complex, evaluations, with knowledge and expertise of impact investment funds which invest capital on a repayable basis, the financial market and nature-based solutions.

We would like the contractor to have a track record of working collaboratively with the key stakeholders in the environmental and green finance sector.

RFI - Response to Catherine.Hacker@defra.gov.uk with Subject heading: BNIF M&E RFI response HOW TO RESPOND: You are not required to answer every question - any information will be gratefully received. · Clarification period will be 18th November 2023 - 16:00 1st February 2023.

Questions and further information can be found within the attached documents.