Biodiversity Net Gain: What counts?

The Department for Environment, Food and Rural Affairs (Defra) has recently published guidance on what can count towards a development's mandatory biodiversity net gain (BNG) in England (the BNG Guidance). The BNG Guidance contains a strategy to develop land in a way that contributes to the recovery of nature.

Background

Net environmental gain is a principle for development set out in ‘A Green Future’, the UK government’s 25-year plan to improve the environment. In this plan, the government proposed expanding current BNG approaches to achieve wider natural capital benefits, including flood protection, improved water quality and improved air quality. 

Generally, the aim of the BNG Guidance is to ensure a new development's impact on the environment is positive by delivering improvements through habitat creation or enhancement and mitigating as far as possible potential harm. 

In February 2023, Defra published the government’s response to its 2022 consultation on BNG regulations and implementation together with some guidance. In March 2023, Defra confirmed that a mandatory 10% minimum BNG requirement will apply to all new planning applications under the planning regime in England that result in loss or degradation of habitat from November 2023 (with some exceptions). Defra has not yet published the draft regulations.

What does the BNG Guidance say?

 The BNG Guidance explains that if a developer is creating or enhancing habitat as part of its development, this may count towards its BNG. This will apply even if the habitat being created or enhanced as part of the development is to:

• comply with a statutory obligation or policy, for example, green infrastructure, environmental impact assessment compensation or sustainable drainage;
• provide river basin management plan mitigation and enhancement measures; and/or
• provide mitigation or compensation for protected species or sites, for example, nutrient mitigation.

Off-site mitigation and compensation for protected sites and species may also count towards BNG (although it is notable that off-site units must be legally secure for at least 30 years, and registered, before they can count towards BNG). However, at least 10% of BNG should be achieved through other activities, for example, on-site habitat creation and enhancement. 

Developers should also note that habitat creation or enhancements do not count towards BNG if required for restocking conditions relating to a tree-felling licence, marine licence, or remediation under the environmental damage regime.

Summary

 The BNG Guidance will support housing and infrastructure development that delivers measurable environmental improvement and nature-based solutions to climate change without increasing the overall burdens on developers.

If you would like any further information about BNG and how it may impact future housing and infrastructure developments, please do get in touch with the Environment, Safety & Planning team.