Pollenize Overview of Biodiversity Net Gain
Biodiversity Net Gain (BNG) is a scheme that was due to be introduced by the UK government from November 2023 to enhance nature's recovery during land development. However, it has now been postponed until the new year. Our Co-founder Owen Finnie has been working closely with research intern, Sophie Holmes, to create a comprehensive BNG overview as understood by Pollenize (as of Summer 2022). Sophie’s internship was facilitated by Lee Whittock, Industry Liason Officer for the School of Society and Culture (Faculty of Arts, Humanities and Business) at the University of Plymouth.
“Given the significant challenges facing UK biodiversity, the Biodiversity Net Gain policy is a welcome step towards reducing the environmental impact of future developments. Although the effects of this policy are yet to be seen, it should support nature positive developments through (where possible) local creation and/or restoration of habitats. The use of a Biodiversity metric based on the size, type and condition of habitats should be relatively straightforward for developers to implement, but it is important that this metric has the intended effect i.e. its use results in a clear increase in biodiversity, both the number and abundance of species present, over a reasonable time frame. Furthermore, it is important that the proposed net gain of biodiversity associated with developments is resilient to the rapidly changing climatic conditions we currently face; independent monitoring of species present and ecosystem resilience in habitats created by this policy will therefore be essential.”
Please read the full report below:
Introduction to the Biodiversity Net Gain (BNG) Statement:
Biodiversity Net Gain (BNG) is a concept that was legally mandated under the 2021 Environment Act to ensure that the development undertaken to habitats/sites leaves the natural environment in a measurably better state than it was beforehand. The Government of the United Kingdom has implemented a BNG policy that applies to England only which covers how BNG can be delivered and secured as well as offering guidance. Before this policy is put into effect in November 2023 it is important to understand what the BNG policy is, who it impacts, and overall information that is involved.
The consultation that the government underwent regarding what the BNG policy will cover included these three aspects:
How the Town and Country Planning Act 1990 (TCPA) will be affected by the BNG policy. With proposed requirements considered such as potential exemptions, development that occurs within statutory designed sites, and irreplaceable habitats
How BNG will be applied to different types of developments such as phased development, small sites, and Nationally Significant Infrastructure Projects (NSIPs)
How mandatory BNG will work for TCPA developments and an example biodiversity gain plan
The details of these aspects will be explored as well as the information that is needed to be understood with the introduction to the biodiversity net gain policy.
These are the current start dates, including the dates that will be phased in, for the BNG policy to launch:
November 2023 – for most Town and Country Planning Associations 1900 (TCPA) development
April 2024 – Small sites and TCPA 1900 development
November 2025 – Nationally Significant Infrastructure Projects (NSIPs)
It is important to note that after the introduction of the policy in November 2023 there will be phased developments to the BNG policy with secondary legislature and guidance.
Measuring Biodiversity Net Gain:
There will be a 30-year duration for biodiversity gain to be achieved and secured, bearing in mind that this timeframe could be changed once the policy is in action. The gain required within this period of time will have to be a minimum of a 10% biodiversity net gain.
BNG is measured by ‘biodiversity units’ which will be quantified by the Defra Metric v4.0 that will be mandatory after the BNG policy is in action and this measurement of BNG will be done by an ecologist who will value the site at pre-development (the baseline) and then measure the value post-development. It is the responsibility of the developer to make sure that the metric of the site, the biodiversity unit measurement, is included in the application for the site development.
Achieving Biodiversity Net Gain:
BNG can be achieved on-site, off-site, or through the biodiversity credit scheme. Regardless of the type of site it will be achieved by, it will have to be registered through the National Register. The site that is chosen will be the area that measures the number of units that will increase the BNG by 10%.
Natural England will be the Biodiversity Gain Site Register Operator that will record allocations of off-site biodiversity gains to developments and make this information publicly available. The time for applications to be consulted by the register is likely to be around 6 weeks and there will be a fee for applications to register biodiversity sites which has an approximate price that could range from £100 to £1000 until it is consolidated by the government.
The legal requirements for BNG are:
The units created in the red-line (the boundaries of the site) must be secured in the 30 years as contracted in the BNG policy
The development of the site must be achieved through the means of planning conditions/planning obligations/conservation covenant
Choosing the right site:
When it comes to choosing the right type of site for development to occur and achieving BNG there are a variety of factors to consider.
With on-site, it is the location where the development work is taking place to gain BNG units.
When choosing on-site these things can be considered:
Checking as to whether permitted development rights can help.
The value of the habitat – with a low-value habitat site achieving units could be more achievable – this can include whether it’s a: built form, urban habitat, woodland/grassland, rarer habitats e.g. wetlands.
Things to note with on-site:
Can draw a red-line so that high-value habitat isn’t incorporated in the development.
There are aspects of landscaping that can get you units, this can include seed mixes/ trees/shrubs. Green walls/roofs can be considered but it is important to note that they are costly.
Bird boxes/bat boxes don’t count.
With off-site, it is where the gain of BNG units is offset to a different location than where the development is. This would involve registering the off-site from landowner/broker/intermediary or registering it on your own land and it would be the landowners' duty to create the biodiversity credits, make sure those credits are delivered within the 30 years (+) and have it registered on Natural England’s register. When working with an individual to achieve BNG off-site a contract is required to agree on terms
Things to note with off-site:
There is a certainty of availability.
Income can be made from selling spare biodiversity units.
It can be stacked with other nature credits.
There can be difficulty to find the units needed (the number of them or the location).
Approximate market costs are £20K - £25K + VAT per unit
Multiple sites might be needed for multiple developments as ideally off-site units should be located:
Within the same LPA (Local Planning Authority) area as the development site
Within the same LPA local nature priority site
Things that need to be done by the developer buyer of off-site BNG once finding the appropriate site:
Have planning permission
Units will need to be registered, as aforementioned, with Natural England
Due diligence before paying the deposit and entering an allocation agreement (contract) in order to purchase the units.
If the required BNG 10% cannot be achieved on-site or off-site then biodiversity credits can be sold to developers. This is through the biodiversity credits scheme which is a system set up by the Secretary of State so that the government can sell biodiversity credits to developers. The price of biodiversity credits will be set higher than prices for equivalent biodiversity gain on the market so that it doesn’t undermine BNG and the government aims to minimise the use of statutory biodiversity credits and phase them out once the biodiversity unit market has been running for a period of time
Landowners/land managers will be able to create or enhance habitat for the purpose of selling biodiversity units. This would mean that to deliver this the landowner/manager would have the responsibility to meet the requirements of the policy, register these requirements, and demonstrate that there are no significant adverse impacts on priority habitats.
Selling BNG Credits:
Excess credits that developers gain will be allowed to be sold as off-site gains for another development, provided that the excess gain is registered and that these units should be delivered above and beyond the gains required by the original development to meet the mandatory BNG requirement. These excess gains have to be identified as clearly as such in the original development’s biodiversity gain plan.
There is the option to ‘stack’ payments which means that multiple biodiversity units/credits from different nature markets can be sold separately from the same parcel of land. The first phase of guidance as to how stacking fits into the BNG policy and how it can be combined with other schemes will run until March 2025.
Land managers will be able to sell both biodiversity units and nutrient credits from the same nature-based intervention but land managers should not sell credits for other ecosystems (such as carbon credits) from the same nature-based intervention if they are also selling biodiversity units and/or nutrient credits.
Enhancements
Where planned site enhancements have been achieved further enhancements are possible before the end of the existing legal agreement. With this, there must be evidence provided that the habitat enhancement has been met. The subsequent enhancements will require an updated legal agreement which has set new goals and the duration will be extended so that it covers the time on the initial agreement plus 30 years for the new enhancement.
Further phased developments:
To allow a longer period of time for developers and local planning authorities to prepare for the BNG policy and anticipate a high volume of minor applications, there will be a transition period for small sites until April 2024.
BNG is intended to be applied to Nationally Significant Infrastructure Projects (NSIPs) without any extensive exemptions other than the provision made for development of irreplaceable habitats. The requirement for NSIPs will be put in place no later than November 2025. A draft biodiversity gain statement will be produced this year and the government will begin to consult with industry and stakeholders on this draft as soon as possible. It is encouraged that projects voluntarily adopt BNG on an earlier basis.
Exemptions:
Regulations are intended to be used to make exemptions for:
Biodiversity gain sites where habitats are being enhanced for wildlife
Permitted development
Marine development
A site that contains no habitat so the baseline value is zero
Temporary impact (can be restored in 2 years)
Further exemptions that will be clarified in the government’s secondary legislation:
Householder applications (will specify what this means)
Development impacting the habitat of an area below a ‘de minimis’ threshold of 25 metres squared, or 5 metres for linear habitats such as hedgerows
Small-scale self-build and custom housebuilding
Further Legislation:
The BNG policy states that there will be further guidance in secondary legislature to clarify and include more information on certain points.
The points proposed for further content include:
More information about the future management of biodiversity in the biodiversity gain plan
More reference to existing industry guidance for the biodiversity gain information and biodiversity gain plan
Use of regulations/guidance/checklists for precise information requirements as well as any necessary supporting document requirements
Intertidal developments should not be required to demonstrate delivery of on-site habitats as it’s not usually ecologically feasible
More of the policy is labelled as mandatory to reduce the chance that plans have to be resubmitted to include additional information
Guidance for conservation covenants including what should be included and the planning obligation which secures biodiversity gains for the purpose of BNG
Steps to prepare for the BNG policy:
To conclude the steps that are required include:
1) Site selection – select a site that is suitable for BNG and when choosing avoid a site that will have adverse effects to the habitat
2) Pre-application – a biodiversity metric calculation must be undertaken (by an ecologist) and from there you will be able to see whether BNG can be achieved on-site (if not then off-site opportunities should be looked into)
3) Application – complete the biodiversity gain plan which should include habitat management plans and how the net gains will be managed and maintained
4) After the legal securement of BNG – the land will be registered through Natural England’s ‘Biodiversity Gain Site Register’
5) Commencement – during the net gain agreement the site needs management, monitoring and reporting
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