Just 4% of England’s upland peatlands are in a good natural condition, wildlife and industry groups have warned.

Peatlands, like those on Dartmoor and Exmoor, are the “UK’s rainforests”, storing hundreds of thousands of tonnes of carbon a year, preventing flooding, cleaning drinking water and providing beautiful landscapes and wildlife habitats, according to conservationists.

But the vast majority of England’s upland peat areas are not living up to their potential for providing homes for wildlife, providing natural services and combating climate change, a partnership of organisations have warned.

They have written to environment secretary Owen Paterson and energy and climate change secretary Ed Davey, calling on them to take action to boost half a million acres of English peatlands (200,000 hectares).

The groups want the ministers to work to bring England’s upland peatlands back into the condition that will maintain the natural services, such as filtering drinking water and slowing flood waters, that they provide.

The secretaries of state are also being urged to support a programme backed by international conservation charity the IUCN for the UK to have a million hectares of healthy and well-managed upland peatlands by 2020, with 200,000 hectares in England. They should develop capital funding for peatland restoration which uses a combination of public and private money, and secure funding to ensure upland peat areas are well managed. And they must draw up methods for estimating carbon losses and storage from peatland and include it in emissions reporting, the partnership urged.

RSPB conservation director Martin Harper said: “Although our upland peatlands are revered by many, ironically for too long they have been neglected, preventing them from reaching potential as sources of clean water, sinks to help trap carbon or refuges for threatened species.

“Restoring these peatland sites will help wildlife, soak up carbon and increase their appeal as wonderful places to visit.”

Patrick Begg, rural enterprises director of the National Trust, said: “Peatlands are the UK’s rainforest, locking up over 400,000 tonnes of carbon per year, slowing floodwaters, filtering drinking water and providing a unique landscape, habitat and home for wildlife.

“But they’ve been in serious decline for over 150 years. The trust’s 50-year vision for our High Peak Estate maps out what can be done, but we need to act faster and together everywhere – landowners and Government – to turn things round and put all our peatlands back into good health.”

Stephen Trotter, the Wildlife Trusts’ director for England, said the moors were wonderful places for people to enjoy and a home to a range of internationally important plants and animals. They are also a massive store of carbon and hold a large volume of water, he said.

“In fact, the drinking water supply for many millions of people comes from these peat landscapes. If we look after them and help them to recover, they will help us respond to climate change and save money for society in the long term.”

The partnership calling for work to improve upland peat areas includes Buglife, the Campaign for National Parks, the Campaign to Protect Rural England (CPRE), the RSPB, the National Trust, The Wildlife Trusts, South West Water and United Utilities.