Updated on 3 July 2024

What is Biodiversity Net Gain (BNG) and why does it matter?

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Oliver Lewis

Oliver Lewis

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Oliver Lewis is the founder of Joe’s Blooms, providing end-to-end digital solutions to help you create best-in-class Biodiversity Gain Plans. Expert in this field, he shares his knowledge on the Environment Bill.

Biodiversity Net Gain (BNG) is a new legal requirement for most new developments in England.
At its heart, BNG is a sustainable approach to development and land management that intends to ensure that development projects have a positive impact on biodiversity. The idea is that any development should not just avoid harm to nature but contribute to its restoration and enhancement, leaving the natural environment in a measurably better state than it was beforehand - benefitting all of us.
BNG was introduced via the Environment Act 2021 and became effective in February 2024. To secure planning permission, developers will have to submit, at different stages of their planning application, a complete metric sheet, a habitat plan (i.e, a map of habitats before and after development) and a Biodiversity Gain Plan (BGP). Together, these documents assess the habitat value of the land they will be developing and provide a measurable plan to create a net uplift in biodiversity of at least 10% over a minimum period of 30 years.  
Biodiversity Metric

This new approach aims to address biodiversity loss caused by human actions. By requiring that any new developments or builds improve the overall biodiversity value in existing habitats or by generating additional biodiversity gains through measurable improvements.

How Biodiversity Net Gain is achieved through the new Environment Act

Developers, Local Planning Authorities, and Landowners/Homeowners are all included in the roll out and, under the terms of the Environment Act, are required to do their bit to help the UK achieve the Biodiversity Net Gain goals. 

As set out above, in order to commence developments, developers need to prove that their project will enhance biodiversity or achieve net gain, by meeting the so-called “biodiversity objective”. Development proposals must now include a completed metric sheet and habitat plan - along with a Biodiversity Gain Plan (or BGP for short).

There are three avenues by which biodiversity value can be incorporated into a development proposal to meet the new requirements.

  1. Creating on-site environmental benefits that enhance the habitat value directly

Examples of this may be: enhancing on-site habitats in a way that is permitted under the terms of the biodiversity metric, building appropriate green infrastructure, or creating new habitats that are appropriate for the site. In doing so, developers will be improving the quality of nature, protecting priority and irreplaceable habitats, incorporating ecological features into future developments, and many other environmental management benefits to improve biodiversity! Developers need to ne sure that the on-site habitat enhancements are appropriate and can be maintained for the 30 years required under the law. 

  1. Using approved and registered off-site biodiversity units (acceptable in the case it is not possible or appropriate to create biodiversity net gain on-site)

If it is not possible to secure the necessary on-site gains, then off-site units can be allocated to the site. These can either be units generated on the developer’s own land (e.g. in the blue line) or from a separate land owner, but in either case the units need to be approved by the Local Planning Authority, have the legal arrangements needed to be maintained for 30 years, and be registered with the Natural England register.

  1. Obtaining statutory biodiversity credits from the Secretary of State in accordance with the environment bill requirements (not preferred and only applicable in special cases)

This third option has been established as a last resort to reach biodiversity net gain mandates in the (rare) cases in which developers are unable to achieve BNG minimum requirements via either on-site or off-site solutions. Where it can be proved that these conditions are true, credits can be purchased from the Secretary of State.  All payments from biodiversity credits to the Secretary of State will be utilised solely for the purpose of habitat enhancement.

BNG principles for development

Local Planning Authorities now have a legal obligation to assess the BNG duty on each planning application that is submitted as a part of the validation process. As the planning authority in each local council, it is their responsibility to prevent biodiversity loss for all new and future developments. 

Beyond merely offsetting losses, BNG aims to prevent further biodiversity loss by preserving local habitats, engaging stakeholders, and aligning with local and national conservation aims. Maintaining and reversing biodiversity loss will require massive collaboration. To facilitate these underlying goals, the following 10 principles have been developed by CIEEM, IEMA and CIRIA to ensure a comprehensive and effective approach to achieving sustainable and meaningful Biodiversity Net Gain.

  1. Apply the Mitigation Hierarchy: Prioritise avoiding environmental harm, followed by minimising impacts, then remediation. Where harm is unavoidable, compensate through environmental enhancements.
  1. Avoid losing irreplaceable biodiversity: Protect habitats and species that cannot be replaced or replicated elsewhere.
  1. Be inclusive and equitable: Involve and consider all stakeholders, ensuring fair distribution of environmental benefits and burdens.
  1. Address risks: Anticipate and manage potential negative impacts on biodiversity throughout the project lifecycle.
  1. Make a measurable Net Gain contribution: Quantify improvements in biodiversity, ensuring gains outweigh losses.
  1. Achieve the best outcomes for biodiversity: Aim for high-quality, sustainable ecological improvements that support a diverse range of species and habitats.
  1. Be additional: BNG initiatives should enhance, not replace, existing biodiversity commitments and regulations.
  1. Create a Net Gain legacy: Develop long-term, sustainable benefits for biodiversity, leaving a positive impact for future generations.
  1. Optimise sustainability: Integrate BNG with broader environmental sustainability goals, creating synergy between biodiversity and other ecological targets.
  1. Be transparent: Maintain openness in all BNG processes and decisions, ensuring accountability and public trust.

Key components of mandatory Biodiversity Net Gain

The Environment Act 2021 mandates the key components for Biodiversity Net Gain for all new developments (with very few exceptions). It revises the Town & Country Planning Act 1990 and stipulates the following requirements:

  • Minimum Biodiversity Gain: A mandatory increase of at least 10% in biodiversity is required. This gain is quantified using the standardised Biodiversity Metric (the Government can change the percentage if it wishes).
  • Long-term Habitat Protection: Newly developed habitats must be safeguarded for a minimum duration of 30 years. This protection is ensured through planning obligations or conservation covenants.
  • Flexible Achievement of Biodiversity Net Gain: The strategy for achieving Biodiversity Net Gain is flexible, allowing for implementation either on-site, off-site, or through a statutory biodiversity credits scheme - though, in accordance with the mitigation hierarchy, restorative work should always be as close as possible to the point of impact.
  • National Register and Existing Protections: The Act introduces a national register for tracking net gain delivery sites.
  • Retention of Current Legal Protections: The Act maintains existing legal safeguards for key habitats and wildlife species, ensuring that these areas continue to receive the protection they currently enjoy.
  • Adherence to Mitigation Hierarchy: As noted above, a clear emphasis is placed on following a mitigation hierarchy. This involves a prioritised approach where the first step is to avoid environmental impacts. If avoidance is not possible, the next step is to mitigate these impacts. Compensatory measures are considered only as a last resort.
  • Scope of Application: The Act's provisions are applicable to many types of development including (eventually) Nationally Significant Infrastructure Projects (NSIPs)

Compliance and Planning Ahead

A clear understanding of BNG and how to integrate it from the perspectives of LPAs, Landowners, and Developers can aid in better managing and coordinating new developments in line with local conservation efforts and evolving requirements.

Beyond adding to existing legal obligations, Biodiversity Net Gain is an opportunity for councils to think holistically, linking Biodiversity Net Gains with broader council services. For councils that have declared a climate and ecological emergency, Biodiversity Net Gain offers a tangible action to address these crises. It's a chance to envision and shape the future natural environment of local areas, ensuring it delivers for the community.

De Minimis Threshold: Designed for the smallest of projects, if a development impacts no priority habitat and less than 25 square metres of non-zero rated habitat, or less than 5 metres for linear habitats like hedgerows and watercourses, it will fall below the 'de minimis' threshold and will be exempt from BNG. However, you must demonstrate that you are genuinely eligible to meet the de minimis threshold and the Local Planning Authority will inspect any claim to ensure that there is no fraudulent attempts to sidestep the new obligations. 

Local Nature Recovery Strategies (LNRS) are another critical aspect. They offer an opportunity for collaborative work with neighbouring authorities’ reach beyond local government to involve communities, landowners, developers and farmers in creating and reaping the benefits of Biodiversity Net Gains, particularly when it comes to biodiversity units (BUs) in the off-site BU credit market.

Engaging with Biodiversity Net Gain now also allows for input into ongoing policy development by Defra and Natural England.

Who is exempt from Biodiversity Net Gain?

The UK Government has listed a small number of exemptions from the Biodiversity Net Gain (BNG) rules. However, it’s worth saying that these exemptions are few and far between - BNG is intended to be a universal policy, and it’s always better to err on the side of complying than trying to avoid it. That said, let’s quickly look at the main exemptions: 

Biodiversity Gain Sites: Sites specifically enhanced to benefit wildlife, termed biodiversity gain sites, are exempt (these sites are already geared towards enhancing biodiversity, they are not subject to additional BNG requirements). 

Householder Applications: Development related to household applications also falls under the exemptions. Of course, you can always undertake BNG anyway and there are a number of other things you can do to increase biodiversity in your home.

Self-Build and Small-Scale Developments: Small scale self-build and custom housebuilding projects are included in the exemptions, however you must make sure that you meet the specifications set out in the relevant laws. 

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