BIODIVERSITY NET GAIN – WHAT IS IT, WHY SHOULD I CARE & WHAT SHOULD I DO?
Peter Cole
Oct, 25 2022 4 min readWhat is Biodiversity Net Gain?
As part of the UK ambition to achieve net zero by 2050, there will be a mandate for certain property developments to deliver 10% biodiversity net gain. Biodiversity net gain, or BNG as it is commonly referred to, is a form of development and land management which aims to leave the natural environment in a measurably better state than it was before.
Now in some cases, developers are not going to be able to achieve their BNG threshold on their development site. In these instances, they will have the option to purchase biodiversity units from an off-site habitat market, which will be recorded on a BNG Register. The more local the sourced off-site habitat the better, as the units will be scored more valuably if they are within the local planning authority.
When will this happen?
Well, some developments are being forced by Councils to act now, but for many this is not the case. The secondary legislation required to enforce BNG is not actually expected to be implemented until November 2023 for Town and Country Planning Act and Local or Neighbourhood Development Orders, and November 2025 for National Infrastructure Schemes.
Why should I care now?
This is a case of being proactive rather than reactive. If you’re a landowner, you need to get your land in the best position possible to be able to quickly take advantage of the opportunity. By understanding the LPA’s registration process, creating a baseline and management plan you can put yourself in the best position to take advantage of this market.
If you’re a developer, we don’t need to tell you that schemes can take a long time to reach approval and the ground to be broken. If you’ve acquired your development land, you need to be making your assessments now to understand if you are going to require off-site habitats to meet the number of units you are likely to need to offset. If onsite offsetting isn’t possible for you, off-site habitats will be your cheapest option, as the third option of purchasing credits will be expensive and should be seen as a last resort.
As a landowner, what’s in it for me?
Alongside receiving a large payment for selling your biodiversity units, in some cases your land can still generate other income. Some agricultural activity, such as low intensity livestock grazing, may be able to continue within the newly created habitat. However, there is still little clarity whether other income sources such as Environmental Land Management schemes (ELMS), carbon credits, ecological offsetting, or nutrient credits can be combined on the same land.
Of course, there are some costs which are important to consider. Ceres Property will help you appraise these costs to ensure an appropriate value for your biodiversity units is negotiated.
So, how can Ceres Property help you?
Our recommendation is to speak to us about joining the Ceres Green Development Database. There is no cost to this. Essentially the ever-growing database, currently consisting of 185,000 acres, allows Ceres Property to facilitate the introduction of developers to landowners, and vice versa. But it’s not just a matchmaking service. In order to be able to broker successful agreements, our colleagues at Ceres Rural first assist landowners with preparing their land for BNG. The process is:
- We appraise the land to assess its suitability for BNG
- Subject to a successful appraisal, we set out a management plan and review potential costs
- We submit the land to be adopted by the local council for BNG
By completing this process, when developers enquire through the database, Ceres Property is able to find suitable land and quickly assist the developer with the terms and conditions of the potential agreement and the process thereafter to secure the deal.
Once a deal is established in principle, Ceres Rural is again able to help, by providing advice on establishing, managing and monitoring the BNG land.
But BNG brokering is not the only use of the database. It also creates opportunities for developers and landowners to find/supply land for alternative uses, such as ecology offsetting, nitrate neutrality and other emerging markets.
Next steps
You can either:
- Immediately register your interest in the Green Development Database through the contact us form or by emailing contact@ceresproperty.co.uk
- Contact peter.cole@ceresproperty.co.uk for a no-obligation conversation to help you understand your opportunity and whether BNG and the Green Development Database is the right path for you.
