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August marked the six-month milestone since Biodiversity Net Gain (BNG) became mandatory for most planning applications under the Town and Country Planning Act. Drawing from Natural England's recent reflections and our own expertise with our BNG Finder service, we'll explore how this first half year has gone.

In the quest for sustainable development, the concept of biodiversity net gain has emerged as a pivotal strategy, aiming to leave the environment in a better state than before a development has taken place. Recent updates to the Statutory Biodiversity Metric and the introduction of a formal appeal process for biodiversity gain plans mark significant milestones in this journey. This article looks into these developments, shedding light on their implications for developers and landowners.

From today, 12 February 2024, all major developments in England are required to deliver at least a 10% benefit for nature (biodiversity net gain). This legislation is the first of its kind in the world, making England a frontrunner in legal requirements that give back positively to nature. 

We've put this blog together that will explore the key aspects of biodiversity net gain that developers should know before it comes into force, so you can understand how it works and how you can successfully integrate it into your development projects.

Welcome to the first edition of Accelar’s new Nature Finance Deep Dive series, where we take a regular look at the latest topics in green finance and nature recovery. With a constant influx of new policies and tools, this series aims to cut through the technical jargon and break down the key takeaways and impacts for each topic. Our first article focuses on Biodiversity Net Gain (BNG), a concept that will become particularly significant in the next few months as it has been recently announced by the Government that legislation to bring in BNG as a standardised and mandated policy will be published in November. This feature looks at what developments and opportunities are happening in the BNG space, and what it will mean for landowners and developers. What is BNG all about? BNG in its simplest form is a planning requirement that is targeted at new developments, so that nature doesn’t lose out [1] . It places a requirement so that if a loss of habitat is expected a result of a development, other habitat must be created. Preferably on-site, but if that is not possible then off-site (on-site meaning the land being developed, and off-site meaning land away from the development site). BNG seeks to enhance the overall value of natural capital as part of Defra’s long term nature ambitions. It is introduced to help protect nature and continue the flow of regulating services. It acknowledges the value of the natural environment through the lens of improving wildlife, cleaner air and water, natural flood management, educational opportunities. These are all ecosystem services that are introduced when biodiversity is created. The aim of BNG is not only to increase the amount of biodiversity in England, but also to enhance existing habitats. There has been a 13% decrease in average abundance of wildlife in the UK since the 1970s according to the State of Nature Report [2] . The UK government has introduced new policies under the Environment Act 2021 for mandatory BNG. The Government has said that BNG will become mandatory for all planning permissions in England from January 2024, and for small sites from April 2024. The Act will require that all biodiversity be not only replaced but increased by a minimum of 10% post-development. On completion of the development, the habitat enhancement will be required to be maintained for at least 30 years. The National Planning Policy Framework [3] (NPPF) also sets out the government’s planning policies and guidance on how these should be applied, which incorporates the delivery of BNG policy. Biodiversity units are calculated through the Biodiversity Metric 4.0 [4] tool from Natural England, the Government’s advisor for the natural environment in England. The units represent a measure used to evaluate the amount of biodiversity in a specific area. The metric uses various factors such as habitat type, size, quality, and location to determine value. It is important to note that area habitats are measured differently to linear habitats (such as watercourses and hedgerows), therefore these must be dealt with individually within three separate ‘modules’ of the metric. Units located on-site are the preferred approach and may be generated by local enhancement through means such as habitat creation and green infrastructure. Off-site units may be required if there is an insufficient natural capital opportunity within the development to meet BNG requirements. Statutory credits come into play if a developer is unable to meet mandatory BNG requirements through on-site or off-site units. Defra recently released the guide prices and information on calculating costs for developers buying statutory credits [5] . These credits are valued by habitat type and distinctiveness. The credits range from £42,000 to £650,000 (e.g., for peat lakes) per credit.

Over the past nine months, Accelar has been working with Groundwork North East and Cumbria on its ‘Revitalising our Estuaries’ project, focusing on the restoration and sustainable finance elements of six estuaries in the northeast. Working alongside JBA Consulting to analyse data from a range of estuary interventions, Accelar has developed a bespoke financial model to help attract sustainable investment. Read the press release below to find out more about the project, and to get a copy of the investor portfolio.