The funding will build on Scottish Natural Heritage's (SNH) recent Peatland Action work as well as helping to reduce carbon emissions in line with Scotland's climate change targets.
Overall, SNH has improved the biodiversity, water quality and natural flood management of 10,000 hectares of peatlands since 2013.
Announcing the funding, Ms Cunningham said: "Almost a fifth of Scotland's land is covered with peatland. It's not only a key habitat for wildlife, but plays an important role in carbon capture and storage and helps reduce our greenhouse gas emissions.
-- Advertisement --
"This type of action is crucial if we are to continue to build on our world leading low carbon ambitions, which saw us exceed our 2020 emissions reductions targets six years early.
"Our investment in peatland restoration has already transformed more than 10,000 hectares since 2013 and I expect this will play a significant role in our proposed domestic climate change plan, which we will set out to Parliament in January."
Andrew McBride, SNH Peatland Action Project Manager, added: "This is great news and further boosts the role that Scotland plays in the global effort to tackle climate change and enhancement of wildlife on our peatlands.
"We are committed to improving Scotland's wonderful peatlands which are so important in terms of our biodiversity. The task now is to focus on specific projects to carry us forward."
(LM/MH)
