Biodiversity Net Gain Credits are the third option for developers to meet their mandatory net gain requirement if they are unable to achieve their biodiversity gains on-site or through off-site measures. These monetary incentives will allow developers to buy credits from habitat bank providers which will be invested into off-site biodiversity enhancement projects and will help ensure that the net gain minimums are met across the country.

On-site biodiversity gains can be achieved through a variety of means including incorporating biodiversity features within the project design, planting native species on site and/or enhancing existing wildlife habitats within the development boundary. These on-site improvements can deliver a number of environmental benefits such as improving air quality, providing access to nature, delivering flood resilience, preserving irreplaceable habitats and/or supporting local nature recovery strategies with ecological value.

Investing in Nature: Exploring the Concept of Biodiversity Net Gain Credits

The new Environment Act, which came into force in 2021, has introduced a mandatory biodiversity net gain requirement for all development sites. This requires a positive biodiversity gain to be achieved by all new developments in England and aims to reverse the decline of our natural wildlife.

It also sets out clear statutory targets to do so, including restoring and enhancing habitats and increasing biodiversity on sites where there is development. This has been referred to as the ‘Biodiversity Net Gain’ (BNG) target and is set out in Schedule 14 of the Environment Act.

In order to demonstrate the BNG requirement, a full ecological assessment is required and a ‘Biodiversity Net Gain Statement’ will be required with all planning applications in England. This will assess the existing habitats on a development site and their condition as at 30th January 2020 using an appropriate methodology and data. This can be achieved through the use of a site survey, aerial imagery and/or other data sets.