Biodiversity net gain: a new consultation

Once in force, provisions of the Environment Act 2021 will introduce mandatory requirements for a 10% biodiversity net gain in relation to many new developments.

The Act only sets a framework - much of the detail is to be filled in through regulations. The Government is currently consulting on the practical and legal implementation of the new requirement in England. The consultation closes on 5 April 2022. There will also be consultation on the biodiversity metric (currently metric 3) before it comes into formal use and further testing of the biodiversity net gain plan template.

The requirements will affect most of those bringing forward new developments, including those promoting Nationally Significant Infrastructure Projects (NSIPs). The biodiversity mitigation hierarchy is to: (1) avoid or reduce impact through site selection and layout; (2) enhance and restore biodiversity on-site; (3) create or enhance off-site habitats on other land or by purchasing biodiversity units on the market; or (4) as a last resort to prevent delay, purchase statutory credits from the Government where on or off-site options are not available. Developers will be required to prepare a biodiversity net gain plan (BNG Plan) explaining their proposals for approval before commencement. Opportunities will arise for landowners whose land could benefit from biodiversity improvements and who could sell biodiversity units to developers to offset losses – the consultation expects the market for biodiversity units to be worth around £135 million.

We summarise the key points here. The Government intends the new requirements to be in place from November 2023 (2025 for NSIPs), although the NPPF already encourages net gains to be secured and many authorities are seeking to negotiate net gain through planning applications.