The Water Environment Fund enables rivers to be restored by:

1. Repairing damaged urban rivers often in deprived areas to enhance the environment for the communities that live there. We are creating attractive and accessible green river corridors within towns and cities that can be used for active travel and recreation, improving health and wellbeing. We help rivers contain floodwaters and create new opportunities for local businesses and suitable development.
2. Removing and easing barriers to migrating fish and improving vital fish stocks. We are increasing the lengths of habitat accessible to native fish, helping to improve endangered populations and creating new opportunities for angling, tourism and recreation, bringing economic benefits and recreational opportunities to river communities. SEPA administers the Water Environment Fund on behalf of the Scottish Government. SEPA works in partnership with local authorities, land and structure owners, fishery trusts and conservation bodies to deliver an annual programme of projects.

SEPA uses the Water Environment Fund to:

• directly commission the removal or easement of redundant weirs by SEPA procurement of options appraisals, designs and groundworks;
• contribute towards a partnership with Local Authorities for the restoration of urban rivers and surrounding green space.
• compensation: Compensation may be provided for landowners/managers for income forgone due to giving over productive land to river restoration. River restoration compensation scheme.

Funding priorities

The Water Environment Fund is targeted at projects which will derive the greatest benefit to Scotland’s rivers and neighboring communities.

1. Improving fish migration past redundant structures

Owners of dams and weirs have a duty to allow fish migration. However, Water Environment Funds may be available to help owners remove an obstacle to fish passage where the weir or dam is no longer in active use, or not a commercial asset, including dormant or ‘mothballed’ assets. For local authority owners, the Scottish Government may provide up to 75% of the groundworks costs to improve fish passage. Funds are not available for ongoing maintenance of completed restoration projects

2. Improving river corridors

Working in partnership with local authorities, The Water Environment Fund will be used to create a better environment for wildlife and people. We will do this by restoring damaged river corridors to enhance the ecological value of the river and improve public amenity and well-being, including the reduction of flood risk.

There are currently two parts of the Water Environment Fund that have been approved by the EU:

1. River Restoration Compensation Scheme

Compensation may be provided for landowners/managers for income forgone due to giving over productive land to river restoration both (a) during works and (b) following the restoration of a river which results in the reduction of productive land. These payments are made available under European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 2014/C 204/01and the SEPA River Restoration Compensation Scheme (SA.43178)

As small amounts of aid are unlikely to distort competition, a useful approved EU mechanism for State aid is the industrial de minimis regulation which allows small amounts of aid i.e. less than €200,000 over 3 consecutive fiscal years, to a single undertaking for a wide range of purposes.

2. Infrastructure Improvements On Agricultural Land Fund

Funding will only be awarded to infrastructure improvements on agricultural land when required as part of a river restoration or removal of a fish barrier project. These payments are made available under Commission Regulation (EU) No 702/2014, Water Environment Fund SA. 41329.

For guidance and application forms for each scheme, please download them here