Delivering Biodiversity Net Gain solutions
A Lancashire based business is working to help developers meet their mandatory Biodiversity Net Gain (BNG) needs while creating a diversified income for landowners.
The Environment Act 2021 has created the requirement that virtually all future building developments in England must produce at least a 10 per cent uplift in biodiversity. The Act aims to ensure that biodiversity is left in a measurably better state than before the development.
BNG is already included in the national planning policy framework (NPPF) and must be included as a part of the planning application process, with a 10 per cent gain becoming a legal obligation for virtually all developments in 2023.
When submitting a planning application, developers will need to demonstrate how they will create that 10 per cent biodiversity uplift.
The delivery of BNG will be legally secured through either a conservation covenant between landowners and responsible bodies which will bind the relevant sites as local land charges or through a planning obligation which runs with the land.
These obligations will apply to new planning applications submitted after November 2023. However, some local authorities are already treating BNG as if it applies now and require it to be provided as part of a scheme.
Susan Gutierrez-Inostroza, of Lancashire-based Legacy Habitat Bank (LHB), based in Barnacre, near Garstang, says: “If you have a development proposal that requires planning permission, it is highly likely that BNG requirements within the new environment bill will impact your project.
“However, it can be challenging for developers trying to mitigate biodiversity loss and achieve the 10 per cent gain required to secure planning approval, which should be through on-site provision as far as is possible.
“The ability to deliver on-site biodiversity is often limited and impractical, due to the value of development land being higher for housing and the chance of having enough space within the footprint of the development scheme unlikely in many cases.
“There are other challenges. For example, developers will be liable for the on-site BNG provision, monitoring, and reporting for the next 30 years, even once the site has been sold.”
Biodiversity gains and losses will be measured in ‘units’ and where not enough units can be provided onsite, offsite provision can be counted.
Susan believes developers will increasingly look to these offsite solutions through specialised habitat banks, using BNG credits that they can buy.
She says: “We believe off-site BNG credits will be the practical way for most developers to offset their BNG uplift requirements and avoid costly time delays in gaining planning consent.”
Susan says demand for those credits is expected to be high, with major development companies having thousands of housing and retail developments in the pipeline in Lancashire alone.
LHB provides a turnkey solution for developers, allowing them to deliver the required 10 per cent net gain by sourcing BNG units and providing ongoing monitoring, management, and reporting in line with an agreed management plan.
There is also an opportunity for landowners to receive income from their land in exchange for units and credits. For example, farmers or businesses may commit to using closed landfill sites or unused farmland to create offsite biodiversity units to sell to developers.
LHB provides clients with a bespoke BNG solution, helping the developer from pre land acquisition stage through the planning process and on to the long-term monitoring and reporting, relieving them of the 30-year commitment.
It also carries out project feasibility studies, can carry out land assessment for biodiversity gain capacity at the acquisition stage and prepare ongoing habitat management and long-term site management plans.
The business works with specialist industry partners, including ecologists, solicitors, and surveyors, bringing together skills and experience, including multi-site property management and asset optimisation, contract law, commercial property law, future budget planning and assurance, agricultural diversification, renewable energy, planning, natural habitat, and facilities management.
It is also looking to work with other landowners and farmers to develop BNG units, either through joint ventures or promotional deals.
Susan says: “We will work with farmers and landowners to provide habitat banks for BNG unit creation and create receptor sites for protected species. In return, the landowner receives a financial incentive greater than could be obtained from other schemes, for example, sale and leaseback or from the sale of nondevelopment land whilst retaining ownership of their land.
“The offset land must be subject to a conservation covenant or a planning obligation to be accepted as part of a BNG. These conditions secure the biodiversity outcomes for 30 years.”