In 2021, the world of development fundamentally changed with the introduction of the Environment Act and the requirements for Biodiversity Net Gain. In simple terms, this means that most planning permissions in England must demonstrate a positive impact for biodiversity.   

For developers this has added a layer of complexity to planning developments, and additional cost factors.  It’s a complex market, being navigated by companies now placing decision making about use of land for biodiversity improvement upfront in development planning. 

What are the legal requirements? 

In England, most terrestrial and intertidal developments must deliver at least a 10% increase in biodiversity – known as Biodiversity Net Gain or BNG – and manage it for a minimum of 30 years.  

If you are planning on developing land, you have two options to meet legislative requirements where your development cannot deliver a 10% increase in biodiversity within the red line boundary; 

1. You can pay someone else to deliver the biodiversity improvements, by purchasing registered offsite biodiversity units (BNG units) from a landowner who has gone through the legal process of setting up their land for this purpose
2. If you own land, and have the space, you can enhance biodiversity on your own land and use the “gain” to provide your schemes with the BNG units.  The limitations of this however, are that you’ll have to go through a fairly convoluted process of putting that land into a legal agreement, which essentially means that the land can’t be used for anything other than nature enhancement for a 30 year period. 

If option two is of interest, then this blog talks you through some of the key considerations involved in setting up your own ‘habitat bank’. 

Is my site suitable? 

The ecological survey and unit calculation will identify if your site is suitable for your existing and future development needs. Sometimes, because of the size, current condition, broad habitat type and or location, this is limited and isn’t capable of giving you the biodiversity ROI you need.   

If it does have the ROI potential, then a specialist BNG ecologist can advise on the management plan (activity) needed to generate that return.  If required, environmental land management specialists can then deliver the practical site works needed to deliver that return.   

If my site is suitable, what do I do next? 

As mentioned previously, you’ll need to go through the process of registering your site which includes agreeing a long-term management plan secured by a legal agreement. It’s not for the faint hearted but for larger developments, or for developers who are very active in certain locations, there are definite benefits.  An experienced and qualified BNG consultant can advise on this process.   

If my site isn’t suitable, what do I do next?  

If you can’t generate enough return from your existing site(s), then you have a couple of options.  You could buy more land with better biodiversity potential and put this into BNG management.  Or you can buy BNG units from someone else.  

Where does risk sit? 

There is risk in generating BNG units on your land.  You’re committed to improving biodiversity ‘returns’ over a 30 year period.  Over this time, there may be damage to the habitat(s) that underpin the biodiversity units, resulting in under performance in biodiversity gain.  Damage can be caused through natural or man-made impact to land – including (but not limited to) flooding, drought, fire and anti-social behaviour.   

If you’re managing your own habitat, you can take out insurance to cover this risk, or hold extra land as contingency.  If you buy units from a provider, they undertake to manage this risk as part of the sales agreement.

Support available

If you might be interested in setting up your own habitat bank and would like to discuss this with one of our specialists, please email natureworks@lancswt.org.uk and we will get in touch to arrange a call.