Biodiversity Net Gain became mandatory two and a half years ago and whilst there have been challenges, England now has a functioning market in biodiversity units supplied by a growing number of habitat banks. 

In August 2026 the government made changes to BNG legislation. Rather than these changes being a sign of reconsideration or a retreat from BNG, they are tweaks to the existing system. For our corporate partners, the maturing BNG market matters more than August reform. 

Read on to discover what's changed in BNG legislation, how the BNG market is evolving at scale, what we're seeing first-hand through our own habitat bank, and what the growing role of Biodiversity Net Gain in the delivery of nationally significant infrastructure projects could mean 

Key changes to the BNG Regulations – Defra amendments 6^th August 2026 

Defra's amendment regulations came into force on 6 August, introducing the first package of reforms since BNG launched. In brief these amendments included 

• A new 0.2-hectare exemption. The smallest developments no longer need to deliver mandatory BNG unless the site includes onsite priority habitat, in which case the exemption doesn't apply. 
• The small-scale self-build and custom-build exemption has been removed, bringing more of that development type into BNG scope. 
• Changes to the biodiversity gain hierarchy for minor development, making offsite on the same mitigation level as onsite, intended to reduce administrative burden without changing the underlying 10% net gain principle. 
• Transitional arrangements for the statutory biodiversity metric, as it moves toward a digital service. 

What remains the same in BNG legislation is arguably more important. 

• The mitigation hierarchy still applies to every planning application, 
• Local Planning Authorities still must consider biodiversity impact regardless of exemption status, 
• Unless covered by the new 0.2-hectare exemption, developers will still be required to deliver at least a 10% increase in biodiversity compared with the site's pre-development baseline, and those biodiversity gains must still be maintained for a minimum of 30 years. 
• Planning applications already submitted continue under the existing rules. 

Evaluation of the BNG market - two and a half years after becoming mandatory 

As of August 2026, Natural England's register shows: 

• 366 habitat bank sites registered nationally 
• An estimated 9,769 hectares of land under legal agreement for biodiversity gain 
• An estimated market value of £93m in units transacted since BNG launch 

Whatever the precise figures on the day, the direction is unambiguous. The handful of early-mover sites has grown into a genuine market with a widening range of habitat types on offer.

Cutacre Nature Reserve – progress at Lancashire Wildlife Trusts own BNG habitat bank 

We're not just watching this market from the outside; having invested in our own habitat bank at Cutacre Nature Reserve in Wigan. 

Nationally Significant Infrastructure Projects (NSIPs) and BNG 

From 2nd November 2026, mandatory Biodiversity Net Gain extends to Nationally Significant Infrastructure Projects, the large-scale transport, energy and water schemes that sit outside the normal planning system. The government has opted not to introduce sector-specific exemptions, so this applies to all infrastructure projects. 

NSIPs are large, often involve ecologically complex sites, and many will need specialist and strategically located units rather than the common grassland habitat that currently dominate the market.  

NSIPs requirements for BNG will have major implications for the scale and type of demand of BNG units from November 2026.  This is likely to tighten BNG unit supply, putting upward pressure on pricing for specialist and high-distinctiveness units nationally. If your organisation is required to buy BNG units, planning ahead of Novembers likely uplift in demand is recommended. 

There's a broader question still developing around how NSIPs will secure offsite biodiversity units. Most are expected to procure via framework contracts.  This isn't settled in every case, and some NSIP promoters are showing interest in using their mandatory BNG procurement to do more than meet the compliance threshold. Layering in additional benefits that strengthen the resilience of their own infrastructure assets, for example natural flood management schemes and aligning with wider ESG strategies and natural capital commitments.  How that plays out will shape whether mandatory BNG units end up as a narrow procurement line or a genuine route into broader natural capital investment for the organisations delivering it. 

 Working closely with infrastructure providers through Green Northern Connections 

Lancashire Wildlife Trust is having exactly these conversations with infrastructure providers through Green Northern Connections.  This is our work strand within Nature North, a collaboration of public, private and third sector organisations across Northern England who are working together to scale nature recovery. 

Some of the NSIP promoters we're talking to want their mandatory BNG spend to work harder; not just meeting a threshold but contributing to the resilience of their own assets and their broader ESG strategies. It's a fast-evolving space with real potential to set the direction of how developers and corporates approach BNG and natural capital investment in the years ahead. Lancashire Wildlife Trust are not waiting for the procurement route to be settled before having that conversation, and we don't think our partners should either. 

Where next for your BNG unit requirements? 

The message for organisations buying, or expecting to buy, biodiversity units is simple: plan early, as specialist BNG unit supply is likely to tighten from November.  

Whether you are involved in development, infrastructure delivery, want to understand where natural capital policy is moving or considering options for land you manage, please get in touch to discuss your BNG requirements at natureworks@lancswt.org.uk