Unlocking the full potential of biodiversity net gain policy 

Eight months into the mandatory implementation of the new biodiversity net gain (BNG) regime in England, developers are already delivering gains for nature with this transformative regulation.

Since the introduction of the new legislation, which requires developers to deliver at least a 10% gain for biodiversity on their projects, BNG providers, developers and local planning authorities (LPAs) have been working together to contribute positively to biodiversity and reverse a loss of habitats that has left England one of the most nature depleted countries in the world.

The Labour government has announced an overhaul of the planning system to pave the way for 1.5 million new homes over the next five years and BNG presents a unique opportunity to accelerate development in a way that doesn’t come at the expense of nature.

By integrating additional BNG guidance into these plans, we can ensure that the expansion of housing not only meets the urgent needs of people but also supports and enhances our natural environment. But, as with any new and ambitious policy, there are challenges and complexities to be navigated.

Many LPAs were working towards delivering biodiversity benefits even before BNG became mandatory. They are essential facilitators in the successful implementation of BNG as they assess BNG proposals and approve BNG conservation and restoration sites through Section 106 agreements. But as the policy is so new, they are still skilling up and resourcing is stretched. Therefore, it has been taking longer than anticipated for LPAs to approve S106 agreements (planning obligations) and verify when a developer has met its BNG requirements.

Accounting for nature is complex, and LPAs need more support and guidance to navigate these legal frameworks. With increased resources and confidence, LPAs can accelerate the signing of these agreements, paving the way for a more streamlined BNG delivery process. The hope is that delays on approvals will ease as LPAs boost their resourcing.

We also need to ensure guidance provided to the LPAs includes all options available to developers, particularly off-site biodiversity units. Establishing clear mechanisms across England can help unlock the supply of off-site biodiversity units (areas of conservation located away from the development site) and support large-scale nature recovery projects.

Fortunately, there is a strong pipeline of biodiversity units that are due to be approved via both S106 agreements and conservation covenants. Conservation covenants offer an alternative mechanism to legally secure land for off-site BNG delivery, managed by an approved responsible body. Approvals are starting to come through, which means demand can now be met.

For example, Environment Bank recently secured eight conversation covenants for the BNG register, meaning an additional 800 biodiversity units are available for developers to purchase. Our own £160m pipeline of enquiries further illustrates this growing demand. We have already supported SMEs and major housebuilders with biodiversity units, while also providing off-site BNG solutions for utility companies and commercial developers, helping them effectively meet their biodiversity obligations.

Developers can view BNG as an opportunity to transform the natural environment from a passive responsibility to an active investment. Our dedicated nature recovery sites are secured for a minimum of 30 years, ensuring that new habitats can mature properly and ecosystem services, such as flood mitigation, water quality and pollination, can be restored. This long-term commitment will lead to an increase in the abundance of rare, vulnerable, and protected species.

We need more homes for people and more habitats for nature. BNG, when implemented correctly and effectively, can help achieve both without the need for compromise.