Environment minister Thérèse Coffey said funding would pay for restoration of upland and lowland peatlands, habitat creation for rare wildlife, flood-risk reduction and carbon capture projects.
In England, peatlands cover 11% of the country, but estimates suggest four fifths need restoration.
They provide 70% of the country’s drinking water and store more than 3.2 billion tonnes of carbon dioxide.
Bids with the greatest potential for greenhouse gas mitigation and projects that deliver better value for money and maximise environmental benefits will be favoured.
Funds will be available for three years from April 2018 as part of Defra’s £100 million of capital funding for direct investment in projects that support the natural environment.
The closing date for applications will be 20 November 2017 and applications will be made via Defra’s e-tendering platform.