After numerous delays, the Environment Bill has now entered  the Statute Book, bringing into force a series of measures and environmental standards that will become mandatory following the end of the Brexit transition period.

The key provision for developers and investors to note is that the Act brings in a minimum 10% Biodiversity Net Gain (BNG) as a statutory requirement for new development and requires that this biodiversity gain is managed for a minimum of 30 years. Although the effective date is 2023 and the minimum requirement is a 10% offset, we have already seen many emerging Local Plans requiring a minimum 10% BNG ahead of the legislation taking effect, with some also seeking BNG of up to 20%.

Natural England’s Biodiversity Metric 3.0 demonstrates how requirements for 10% and 20% BNG should be measured, and how the alternatives to on-site provision - biodiversity credits and conservation covenants - will work.

Means of providing BNG
1. On-site: enhancing and adding new habitats within the development itself
2. Off-site: enhancing off-site habitats either through the purchase of land or by funding a landowner, to enhance biodiversity on their land
3. Purchase of biodiversity credits which fund off-site enhancements elsewhere

Where it already exists, BNG is posing a viability challenge for developers, both in the case of creating net gain within existing sites or allocations, and where it is necessary to acquire additional land for that purpose.