The Environment Bill, which is set to gain Royal assent in late 2021, will make it mandatory for some developments to deliver a ‘Biodiversity Net Gain’ (BNG). Developers need to consider how their current development proposals, including land acquisitions, may be affected by the measures.
What is Biodiversity Net Gain?
BNG is an approach to development that leaves biodiversity in a better state than before. Where a development has an impact on biodiversity, the developer will be required to provide an increase in appropriate natural habitat and ecological features over and above that being affected. It is hoped that this requirement will help curb the loss of biodiversity as a result of development and help restore ecological networks.
What is being proposed?
As it stands, the Environment Bill makes a BNG requirement of 10% for at least 30 years compulsory on most new developments.
Where will it apply?
The provisions for BNG only apply to England at present and won’t kick in until after a two-year transition period, i.e. from late 2023 at the earliest. However, the principles are fast gaining momentum amongst developers and landowners, and certain local authorities already have policies in place for BNG requirements. It is widely expected that Wales, Scotland and Northern Ireland will follow suit.
Following public consultation of a draft document in 2020, this June the British Standards Institution (BSI) will be publishing BS 8683 Process for designing and implementing Biodiversity Net Gain. As with all BSI standards, this document in itself is likely to further feed into policy requirements UK wide.
How does it work?
During the planning application process, a developer will need to submit, and the planning authority approve, a Biodiversity Net Gain plan. This plan must include, amongst other matters, details of how the biodiversity value has been calculated, and how the net gain target will be achieved. In general, this will be based on a site survey to assess the baseline condition of habitats within the site.
Although a number of tools have been used, the key tool is the Defra/Natural England Biodiversity Metric 2.0. The tool provides a way of measuring and accounting for biodiversity losses and gains resulting from development or land management change. An updated v3.0 of the Metric is set to be released in spring 2021.
The Biodiversity Metric considers the condition of the land, how distinctive it is, how significant it is, and how it connects to habitats in the wider landscape. These factors are evaluated according to a scale, and the resulting figure is multiplied by the size of the site to give a score.
The same procedure is then used at the end of the development work to give a second score, which must then be higher than the initial score. However, a habitat’s full biodiversity value may not be realised for years after the development has completed. The Environment Bill allows developers to take advantage of a higher future value if the habitat enhancement is:
- secured under a planning condition, planning obligation or conservation covenant;
- significant; and
- will be maintained for at least 30 years after the development is completed.
It should be noted that regardless of the initial score, any extra protections put in place for certain species, habitats and designated sites will always take precedence.
The model will in effect become a tool for mapping current levels of biodiversity across the country which, in turn, could lead the Government to identify areas which would benefit from additional measures; it is unclear if this would add to the burden on developers in such areas.
A notable feature of BNG is that the post-development biodiversity value can also include off-site options comprising either enhancing a habitat registered on the Government’s proposed ‘biodiversity gain register’ or purchasing ‘biodiversity credits’ from the Government. This is controversial as it could mean that a habitat on site would be completely destroyed, whereas under previous legislation some of it would have had to remain. However, the Government has indicated that a ‘mitigation hierarchy’ should be followed, which ranks the use of on-site habitat creation options over off-site options. It is not clear to what extent this will weigh against sites with limited on-site options.
The Biodiversity Metric is based on the UK Habitat Classification, which has been published to provide an up-to-date replacement for the current industry standard, JNCC’s Phase 1 habitat survey method. The reason is that whilst the Phase 1 method is simple to apply, the criteria for classification of some habitats are not specified in detail and are open to interpretation, which can result in disagreements over whether they have been correctly attributed. Developers therefore need to ensure that their advisors are using the UK Habitat Classification.
Implications for Consultants
The Biodiversity Metric is based on the UK Habitat Classification, which has been published to provide an up-to-date replacement for the current industry standard, JNCC’s Phase 1 habitat survey method. The reason is that whilst the Phase 1 method is simple to apply, the criteria for classification of some habitats are not specified in detail and are open to interpretation, which can result in disagreements over whether they have been correctly attributed. Developers therefore need to ensure that their advisors are using the UK Habitat Classification.
Implications for Developers
The Government is expected to provide, and consult on, guidance to assist developers that will make it clear what is required and by when, including what is needed during the two-year transition period.
Developers will need to ensure they or their advisors have a strong grasp of the Defra metric and the accompanying guidance; the Biodiversity Net Gain plan must be clearly presented to assist the planning authority with their review of the plan and to reduce the risk of delay. Developers should also consider consulting the local planning authority at an early stage of the planning process for on-site and off-site habitat enhancement.
ITPEnergised can provide expert, up-to-date advice and support on your BNG requirements, helping you avoid development delays.
Dr Mikael Forup, April 2021
For more information and advice please contact our Head of Ecology mikael.forup@itpenergised.com
Download a PDF of this paper here.