We're developing, as Members know, Wales's first climate and nature action plan. It'll bring together actions across government and across society to restore nature, to strengthen climate resilience, to support sustainable development, setting out a pathway towards our ambition in relation to net zero, but also substantive nature recovery as well. And a just transition will be baked into our approach, so that we avoid some of the mistakes that have happened in the past where some communities have been damaged and left behind by much of this.
And I would refer to an example that I've used previously when it comes to this. Retrofitting homes is one policy that's being put forward as a means of reducing carbon emissions. But, of course, it isn't a binary policy, because retrofitting homes provides people with support for the cost-of-living crisis because it will lower bills. More energy-efficient homes will mean lower energy bills. Retrofitting homes means jobs. People will need to be employed to retrofit those homes, bringing further economic benefits. It'll give people warmer homes to live in. And that, in itself, I think is something that we should aspire to. But there are health benefits from that as well, because we will see, as a consequence of people not living in cold and damp homes, fewer children being raised in those homes and consequently suffering from respiratory challenges. We will see fewer winter excess deaths amongst our older population. So, net zero isn't binary. It's an opportunity to bring a number of additional benefits with it.
And environmental stewardship as well can't sit within one portfolio. Decisions on housing, on transport, on food production, on skills, on economic development, public investment, they all matter. Every part of Government has a role here. And that ambition, of course, has to be backed up then by strong governance and accountability. And the Environment (Principles, Governance and Biodiversity Targets) (Wales) Act 2026 creates, doesn't it, the independent Office of Environmental Governance Wales to monitor environmental law, and hold public authorities to account. Statutory biodiversity targets will provide the long-term focus and transparency needed to halt and reverse biodiversity loss. And we'll develop those, by the way, using science and evidence. Taken together, the legislation, the independent oversight and targets give us a strong foundation for long-term nature recovery.
Now, farmers are at the heart of much of this approach, but not just only farmers. There's a wider societal piece that's playing out here as well. But farmers do manage, of course, most of the land in Wales and they play a vital role as stewards of our countryside. Many of the habitats and landscapes we value depend on that active management. They produce our food, they sustain rural businesses and communities, and help shape the landscape that defines Wales very often.
Too often, these debates present a choice, don't they, between food production and nature recovery. Well, the sustainable farming scheme is built on a simple principle: resilient ecosystems and sustainable food production can and should go hand in hand. And this year, as we know, more than 8,000 farm businesses, around half of all eligible farms in Wales, have joined the universal layer of the SFS. Now, that is a strong foundation on which to refine the scheme and develop future optional and collaborative actions. And the reason I didn't directly answer the points raised is because we haven't made those decisions yet. Those discussions are still ongoing, because I want to hear the voices of those around the table in stakeholder groups, and I want to understand what the options are. But when we have made the decision, you will be amongst the first to know.
So, as I've said, this whole process is evolution, isn't it? It's evolution, not revolution. Farmers need certainty because they plan over many years—we know that—and that's why I've committed to over £1 billion over three years, to a multi-year funding cycle for the SFS, giving the sector that long-term certainty it needs to be able to help it to plan and invest with confidence. But support must also be practical. Good stewardship should not come with unnecessary bureaucracy, and, as you know, I have commissioned an independent review of the bureaucratic burden on family farms to identify where there is unnecessary complexity and to recommend practical improvements, because by reducing duplication and simplifying processes, we can then help farmers focus on what really matters most, which is the point I think that you're making: running successful businesses, producing food and caring for the landscapes that they manage.
But individual action, of course, is only part of the answer. Flooding, water quality, wildfires and nature recovery don't stop at field boundaries, and that's why collaboration matters here as well. Through the collaborative layer of the sustainable farming scheme, we are looking to create those opportunities for farmers, land managers and communities to work together across landscapes and across catchments. The integrated natural resources scheme is demonstrating the value of collaboration as well across those larger landscapes and catchments, to improve water quality, to restore habitats, to reduce flood risk, of course, which is important here as well, and to strengthen that climate resilience that we need to build. We're now looking at how we can build on that approach and strengthen the support for that collaborative action in the future.
Ffermio Bro supports co-ordinated action within our designated landscapes, helping farmers and land managers deliver local priorities for nature recovery, for ecosystem resilience and climate action. Its funding has increased from £1.9 million in 2025-26 to £7.5 million from 2026-28. Together, these schemes hopefully will shape future collaborative delivery through the sustainable farming scheme and other means, enabling action at a scale that no individual holding can achieve alone.
We're also looking to restore Wales's natural assets as well. Peatlands are among our most important carbon stores, and wildlife habitats too. The national peatland action programme has restored over 4,000 hectares and has improved the habitat across a further 9,000 hectares here in Wales. That work supports biodiversity, yes, it does store carbon, whether we like it or not, but it also improves water management and it strengthens resilience to drought, flooding and wildfires—again, the multilayered benefits of some of these actions that we're taking. It's practical delivery for climate and nature together.
But restoration can't be limited to individual habitats or protected sites. Nature recovery is needed across productive farmland, yes, but in our towns and communities as well. And, of course, Government can't deliver all of this alone. Through Nature Networks, we've announced more than £10 million for the next funding round. The fund has already supported more than 125 projects, improving protected sites and ecological connections across Wales.