Why does this create an opportunity for landowners?
The Environment Act 2021 allows for the BNG improvements to be delivered:
- onsite;
- offsite; or
- by purchasing biodiversity credits from the government (credits will be priced deliberately unattractively so it is an option of last resort albeit it a very helpful one to ensure development is not held up where on-site of off-site opportunities are not possible)
There are many different types of ways of delivering improved BNG which can include allotments, orchards and on a smaller scale bird boxes. BNG can also be embedded into the built development itself in the form of, for example, ground source heat pumps, rainwater collection. However, delivering BNG onsite will not be without its pitfalls as dedicating land to be used for BNG for 30 years will mean its land use cannot be easily reversed and even at the end of the 30-year period it is likely that other policy designations could be applied to the land preventing its use from changing. For that reason many developers will look to offsite for all/some of their BNG requirements.
This will leave a market for offsite improvements and create an opportunity for landowners able to set aside their land for biodiversity enhancement.
By creating or enhancing habitats on their land, landowners can produce ‘biodiversity units’ which can be uploaded to a register and purchased by proposed developments in their locality. (The BNG metric interesting rewards gains made within the same council area as higher.)
To participate in the scheme, landowners must commit to managing the habitat for at least 30 years, whether personally or with the assistance of a land manager. This agreement is to be consolidated using a planning obligation (s106 Agreement) with a local planning authority or a conservation covenant with a responsible body.
Our planning team can assist you with negotiating these agreements.