In 2018, ADAS, as part of a consortium with EnTrade and the Ecosystems Knowledge Network, began a project to develop a framework for a Payment for Ecosystem Services (PES) based nutrient trading scheme for the Milford Haven and Cleddau Catchment.
The catchment area, which is within Pembrokeshire, is high in natural capital such as fertile soils and wildlife but is economically vulnerable. In addition to these conditions, there is excessive nutrient loading within the catchment, largely from agricultural sources. As a consequence the regulator (Natural Resources Wales) had indicated that there was no scope for additional loading into the catchment; a decision that has created a barrier to commercial or industrial development as they themselves would be an additional source of nutrient emissions. In light of this, the objective of this work was to develop nutrient headroom in the catchment to facilitate economic development by working with a range of partners in the catchment.