BNG Unit Trading

Defra has confirmed the launch date for biodiversity net gain (BNG) as 12 February 2024. This means that, unless exempt, major developments will be subject to BNG from this date and small sites will be subject to BNG from 2 April 2024.

Biodiversity net gain (BNG) is an approach to development, and/or land management, that aims to leave the natural environment in a measurably better state than it was beforehand. Development sites are required to have a baseline survey initially to assess the number of existing units on the property, using a DEFRA prepared metric. Once the baseline score is known then the applicant is required to provide a minimum 10% improvement on site. If the applicant can’t provide the improvement on site, then they can identify a site to trade with locally or failing that acquire credits from DEFRA, however this should be a worst-case option and will likely be most costly.

BNG was introduced to create a mechanism to ensure sites are left in a measurably improved state of biodiversity following a development taking place. If that can’t be achieved then developers will be faced with a cost to secure the required units elsewhere.

Any units that are identified as BNG will need to be secured and maintained for a minimum 30-year period, usually requiring a Section 106 agreement.

Biodiversity is divided into various categories and each is expected to have a 10% increase rather than simply an increase in the sites’ baseline score. This may mean that the applicant is required to improve different aspects of the site such as; grassland, cropland, forest and lakes. These different categories of BNG are likely to command varying prices to secure them off site, in fact units from DEFRA are expected to cost between £42,000 for grassland and up to £650,000 for rare habitat such as peat lakes.

Should you require advice in relation to BNG then contact your ecology consultant who will be able to advise. Its important to seek this advice early in the development process to ensure the optimum solution is designed into the proposed development to minimise the potential financial burden on the appraisal.