On February 12th, 2024, the UK’s Biodiversity Net Gain (BNG) regulation kicked in, forcing developers to evidence a net gain in biodiversity on sites they are developing as part of their planning application. The regulation is designed to mitigate the environmental damage of development and ensure nature is left in a better state than it was found. Developers must deliver at least a 10% biodiversity net gain on all new developments. BNG is measured through the statutory biodiversity metric, which assesses the biodiversity value of habitats by calculating the number of biodiversity units, based on size, condition, type and strategic significance of a habitat. Here is how compliance with BNG will work:
A mitigation hierarchy establishes an order of operations
The mitigation hierarchy consists of four sequential steps designed to assist developers in minimizing the adverse effects of developments on biodiversity. These steps are avoidance, minimization, restoration and offsetting. The primary goal is to prioritize avoidance, thereby preventing biodiversity loss resulting from development activities. In cases where avoidance is not feasible, developers should focus on minimizing their impact, for example through selection of construction material or use of machinery during development.
If avoidance and minimization are insufficient, the next step is habitat restoration. This entails enhancing existing habitats and rectifying any damage caused by the development, ensuring the recovery of biodiversity that may have been lost. Finally, offsetting can be considered if the previous steps are not feasible. This can be achieved either through on-site or off-site habitat creation. When implementing offsetting measures, developers must establish a clear framework for collecting, presenting and measuring outcomes. This ensures they can achieve a demonstrable net gain in biodiversity over a period of at least 30 years.
Developers can deliver biodiversity benefits away from the actual site of development
Many sustainability leaders believe that on-site delivery provides the most value because this can restore lost habitats in their original locations. However, off-site delivery beyond property boundaries can also provide a unique set of benefits. Firstly, on-site delivery of BNG is frequently unattainable due to challenges such as impractical habitat establishment, insufficient land size and difficulties with maintenance. Alternatively, off-site delivery means developers can select larger, more joined-up sites that are better for biodiversity than small, isolated sites. Moreover, once a conservation site is locked in as an area for BNG, the purpose of the area cannot change for 30 years. If on-site delivery is used, then this can create issues relating to future adaptability. Removing on-site pressure means green spaces can then be used for recreation, such as flower gardens and allotments.
Developers will need to be aware of the spatial risk multiplier
While off-site delivery can offer strong benefits, it is also important to consider the spatial risk multiplier which reduces the biodiversity value of habitats delivered further away from the development, meaning developers can be required to provide up to twice the BNG to compensate. When off-site delivery is not possible in the local planning authority (LPA) area, developers need to deliver additional biodiversity gains as a penalty for non-local delivery. Delivery to an adjacent LPA requires a 50% surplus and for other, further away LPAs, the uplift is 100% – both due to the spatial risk multiplier. Finally, if all options have been exhausted, then it is also possible to purchase statutory biodiversity credits from the government, incurring the same 100% uplift. Developers must consider the cost incurred due to varying spatial risk multipliers for different sites and carefully select those that suit their development best.
To learn more about how businesses will be affected by biodiversity loss and damage to natural capital, see Verdantix Strategic Focus: Navigating Nature-Related Risks.
