bng-finder

BNG updates: a clearer, more proportionate framework — and a decisive shift for NSIPs

Sun, 26 Apr 2026 18:10:36 GMT

Defra’s April 2026 announcements confirm that Biodiversity Net Gain (BNG) is moving from early implementation into a more settled, workable regime.

The changes simplify requirements for small sites, widen what counts as “local” for off‑site delivery, and — for the first time — set out a clear, proportionate framework for applying BNG to Nationally Significant Infrastructure Projects (NSIPs). Together, these updates send a strong signal about how the off‑site BNG market is expected to function at scale.

Across the government blog and legal sector summaries, a consistent theme emerges: BNG is being refined, not diluted. The policy intent remains firm, but the rules are being adjusted to improve proportionality, market liquidity and alignment with Local Nature Recovery Strategies. For developers, land managers and habitat providers, the announcements bring greater certainty — particularly around spatial rules and the long‑anticipated extension of BNG to major infrastructure.

Changes happening soon (summer 2026)

1. New 0.2 hectare exemption for small sites –
All developments on sites of 0.2ha or less will be exempt from mandatory BNG, subject to safeguards for priority habitats.
Tip: This removes a large volume of very small, low‑unit transactions from the BNG system, allowing the market to focus on schemes with meaningful unit demand.

2. Removal of the self/custom‑build exemption –
The previous self‑build exemption will be withdrawn, with small schemes instead captured by the new 0.2ha threshold.
Tip: This simplifies exemptions and avoids having multiple parallel carve‑outs to interpret.

3. On‑site and off‑site delivery put on equal footing for minor development –
The biodiversity gain hierarchy will be relaxed so that minor developments are not forced into inappropriate on‑site solutions.
Tip: Expect increased acceptance of off‑site units for constrained or urban sites.

Changes to spatial rules and off‑site delivery geography

4. LNRS areas replace NCAs and LPA boundaries for spatial risk –
For terrestrial habitats, the spatial risk multiplier will now be assessed using Local Nature Recovery Strategy (LNRS) areas only , not National Character Areas or local authority boundaries.
Tip: LNRS areas are much larger, meaning more off‑site options can qualify as “local” without penalty driving more offsite options/competition.

5. Spatial risk multiplier is retained, but applied differently –
The multiplier has not been removed ; it still applies where units are sourced outside the relevant LNRS area.
Tip: Location still matters—but the “local zone” is now wider and clearer.

Changes coming later in 2026

NSIP‑specific changes confirmed for late 2026

6. Mandatory BNG for NSIPs from 2 November 2026 –
All NSIP applications submitted from this date must deliver at least 10% BNG using the statutory metric.
Tip: This ends the voluntary / bespoke approaches previously used for major infrastructure.

7. Introduction of a defined “BNG boundary” for NSIPs –
BNG will apply only to habitats that are negatively impacted, or used to deliver BNG, within a defined BNG boundary — not the entire red‑line order limits.
Tip: This addresses proportionality and cost concerns for large linear and spatially complex schemes.

8. Temporary habitat impacts treated through a simplified approach –
Temporarily affected land will be handled differently from permanently lost habitat in BNG calculations.
Tip: Particularly relevant for construction compounds, access routes and phasing areas.

9. On‑site and off‑site delivery put on an equal footing for NSIPs –
Unlike the Town & Country Planning regime, NSIPs will not default to on‑site delivery where off‑site is more effective.
Tip: This creates clearer demand signals for large‑scale off‑site habitat provision.

10. Spatial risk relaxed within the NSIP BNG area –
Off‑site biodiversity units can be sourced from any LPA, NCA or (for terrestrial habitats) LNRS area overlapping the NSIP BNG boundary without penalty.
Tip: This reflects the strategic scale of infrastructure projects and their catchments.

What this signals for the off‑site BNG market

11. Larger and more stable off‑site demand from infrastructure –
NSIPs introduce long‑term, high‑volume demand into the BNG system.
Tip: Habitat providers with scalable, strategically located sites are likely to benefit most.

12. Stronger alignment with strategic nature recovery priorities –
Both TCPA and NSIP regimes are now explicitly linked to LNRS geography.
Tip: Off‑site projects that clearly support LNRS objectives are likely to remain the most attractive options.

Sources: Defra Environment Blog (20 April 2026); Government response to BNG consultations (15 April 2026); legal and professional briefings including from Gowling WLG, Burges Salmon, and Birketts.

BNG Finder: A Year In Review

Thu, 05 Feb 2026 13:15:51 GMT

2025 was a year of change and uncertainty for the Biodiversity Net Gain (BNG) Market. Despite it being BNG's first full calendar year of being a regulatory requirement, there has been caution amongst developers, landowners and the wider industry as the sector awaited outcomes of Government consultations.

Following the announcement at the end of 2025 that exemptions will apply to smaller sites of up to 0.2 hectares, it is recognised that while this change avoids a more severe impact on the BNG sector, it does still represent a setback for nature recovery and for incentivising private investment in nature markets. The government has, however, stated its intention to make offsite BNG easier to deliver, which will be critical to achieving nature restoration at a national scale. How this commitment is translated into practice over the coming year will therefore be of particular interest.

Despite this, clarity from the announcement has brought some stability back into the market, and with the potential inclusion of NSIPs into BNG regulation this year, there are new opportunities on the horizon to be excited about.

This is the first full year that we have published the BNG Dashboard, which provides open insights into how the BNG Market is evolving.

As the year has come to a close, some of the key trends and highlights are:

✅300% increase in registered BNG units since January 2025

✅190 total registered BNG sites

✅4,263 hectares of land have been registered for BNG as of the start of January 2026

✅96% of BNG units are habitat units, the majority being grassland (69%), followed by heathland (14.7%) and woodland (11.7%) units.

✅Over 12% of LPAs are currently registered with BNG units

We asked our colleagues, Nina Hees, Senior Sustainability Consultant and Chris Fry, Managing Director, to reflect on the past year in BNG, and how they see the future evolving.

Why is BNG such an important planning regulation?

Nina: Development is inevitable, and as we have already stripped England of much of its wildscapes, aligning the two to ensure not only no net loss, but net gain for nature, is critical.

Mandated BNG policy addresses the UK's nature decline by enhancing ecosystems, and given the way the metric is set up, it helps encourage habitat corridors and networks, enhancing fragmented habitats, and connecting us to nature. And you might ask - well why is biodiversity important? That's a question for another time, but in essence biodiversity underpins so much!

What sets BNG apart as a market mechanism?

Nina: BNG puts the mitigation hierarchy into action - principles which are already embedded in global frameworks and agreements (For example, Environmental Impact Assessments, CSR standards, the Kunming-Montreal Global Biodiversity Framework).

Additionally, BNG provides a measurable mechanism and accounting method to flow private finance into nature and, being backed by government, provides more security. It creates a regulatory market - one which encourages adequate supply, demand, and accountability. Importantly, it brings together ecologists, developers, local government, landowners, NGOs, and investors within one framework - something that doesn't always happen in nature conservation.

What's also exciting is that it is one of the more advanced, mandated global biodiversity markets, one which sets a precedent for other nations who may approach similar systems, and a mechanism to learn from.

How have you seen the evolution of the BNG market in the past year?

Nina: If I consider 2024 to 2025, the BNG market has transitioned from a theoretical policy framework to a live, growing market. Since early 2025, scaling has been rapid with the increasing uptake of habitat banks and BNG-dedicated land. Currently, supply is generally outstripping demand, especially for easier to establish habitats like grasslands. There is a risk that England turns into a monoculture of 'other neutral grassland' - so to speak. However, demand and pricing is strongest for rare or harder to replace habitats (For example, water related units, higher distinctiveness habitats) and I expect that to continue, especially where those units are hard to source locally.

Chris: The completion of many Local Nature Recovery Strategies around the country in 2025 is also positive for informing where and what kinds of offsite habitat creation and enhancement can achieve the greatest impact.

How are Accelar & BNG Finder driving the BNG market?

Chris: We recognised that the BNG market was complex and wanted to play our part in helping our clients large and small, on the supply side as well as developers and infrastructure bodies, to navigate it successfully. BNG Finder is in a unique position firstly as it is a curated service that recognises that different parties will have different priorities (to achieve social, climate or other environmental co-benefits from high integrity offsite BNG provision).

Nina: Also, we are providing the service as an extension of our advisory work to help to accelerate the green transition. That means we have insight into the supply and project development side through our work with farmers and land managers like nature conservation charities, as well as the demand side through our engagement and contacts with buyers of units and investors. We also monitor unit prices, trades etc. and model BNG revenue/ cost for projects so have insight into where the risks lie and what a project could look like over 20-30 years. We have an adaptive business model, which is important given an evolving policy landscape. We can respond to changes in regulation, price and support clients in this.

How do you see the impact of the recent small development exemption on the evolution of the BNG market, and on nature more widely?

Nina: Whilst there are benefits to making the system more efficient and lowering costs by limiting exemptions to very small sites, we may miss out on some private-sector investment that would otherwise go to nature. In the current market, demand for small sites account for most of the BNG demand. With the small sites exemption, I would expect a reduction in private sector demand for smaller, fractional units, which could affect the speed or viability of some nature restoration projects. And, from nature's perspective, everything is connected and small contributions can add up!

What is exciting about the next year or few years in BNG?

Nina : The expansion of the BNG mandate to Nationally Significant Infrastructure Projects (NSIPs) is likely to be a significant demand trigger. I'm also curious about the shift towards digital BNG. Moving away from Excel can make the system more transparent and efficient to navigate but may also come with its own challenges.

Chris: The expansion of BNG into NSIPs arises at a time when the UK’s pipeline of investment in infrastructure projects is rising again. The National Infrastructure and Service Transformation Authority (NISTA) was formed last April and has already published a new 10 Year Infrastructure Strategy that is backed by at least £725 billion of government funding. Whether associated with NSIPs or slightly smaller scale asset upgrade projects, the potential demand for offsite BNG has already been illustrated in lots of recent procurement exercises by utility companies.

As we head into BNG’s second full year, and emerging shifts to the regulatory landscape come into play,

BNG Finder will continue to monitor and report on how the market evolves.

Stay up to date by following us on the BNG Finder LinkedIn , checking our dashboard for its monthly updates, and feel free to get in touch with our team via bngfinder@accelar.co.uk.

Get a quick overview of the BNG market via our new dashboard

Thu, 13 Feb 2025 17:32:22 GMT

Happy birthday Biodiversity Net Gain (BNG) - it is now a year since the mandatory regime went live in February 2024. The year has flown by with:

Heroic habitat healing,
Forward-thinking farmers forging nature-based resilience for their estates,
Dynamic data-driven approaches,
Bold bank building (habitat banks that is),
Guidance galore, and
Multiple marketplaces.

It is still relatively early days for BNG to really make its mark and there is no doubt plenty more scope for innovation. To celebrate the anniversary, the ever-resourceful analytics team at BNG Finder have come up with a one page dashboard to provide a monthly snapshot of the national picture. We get it, BNG is pretty complex and keeping track can be challenging. So we thought that the dashboard could be useful to provide a concise overview of how the BNG market is progressing and some of the key trends.

We hope it is useful and would be delighted to hear your feedback and we can’t promise but do shout if you have any requests for developing it a bit further in future months. Please get in touch .

BNG's First Six Months: Key Insights for Landowners and Developers

Wed, 18 Sep 2024 09:13:38 GMT

August marked the six-month milestone since Biodiversity Net Gain (BNG) became mandatory for most planning applications under the Town and Country Planning Act. Drawing from Natural England's recent reflections and our own expertise with our BNG Finder service, we'll explore how this first half year has gone.

The Fundamental Shift in Development Approach

You may already know by now, but BNG has ushered in a new era for the way that nature is treated through planning and development, requiring a minimum 0% biodiversity net gain for projects. This has significantly impacted how developers select
sites and approach designs, with a growing emphasis on benefiting both people and nature.

Key Takeaway for Developers: Consider BNG requirements early in your site selection and design process. This proactive approach can lead to more cost-effective and innovative solutions that meet high integrity habitat creation principles.

Key Takeaway for Landowners: BNG still presents a unique opportunity to monetise your land and improve a farm’s resilience while contributing to nature recovery. Consider how your property could serve as a biodiversity offset site.

The Emergence of a New Market

The introduction of statutory BNG has catalysed the beginnings of a vibrant new market. We've seen the rise of habitat banks, BNG brokers, software tools, and online marketplaces such as BNG Finder - all aimed at connecting developers with BNG solutions.

Through BNG Finder, we’ve been getting stuck in and kept productive conversations moving forward; sharing what we know as well as our experiences. With the wide scope of this new market, we’d really like to see more talk out there about BNG success stories throughout the rest of 2024, as well as more resources that can help developers move forward with minimal
barriers to entry.

Market Snapshot: Nearly 500 BNG sites are currently being advertised across digital marketplaces, with most ready or nearly ready for registration on the biodiversity gain site register.

Opportunity Alert: For landowners, this burgeoning market represents a chance to diversify income streams. For developers, it offers a widely growing range of options for meeting BNG requirements.

Navigating the BNG Register

The BNG Register, managed by Natural England, is ultimately the place for recording off-site gains and preventing double-counting of biodiversity units. As of August 2024, 11 gain sites have been listed on the register, securing over 250 hectares and 7.5 km of planned habitat intervention.

Registration Tip: Natural England aims to process all applications within 6 weeks, with some completed in as little as 2 weeks. Ensure your application meets all requirements to avoid delays.

The Role of Statutory Biodiversity Credits

While on-site and off-site options are preferred, statutory biodiversity credits have served as a last resort for developers unable to meet BNG requirements through other means.

Important Note: These credits are only available after planning permission has been granted and other options exhausted. Local Planning Authorities play a crucial role in determining when developers can purchase these credits.

Looking Ahead: Challenges and Opportunities

While the introduction of BNG may have been slow in terms of the rate of planning applications, offsite agreements and getting the market going, the government remains committed to improving the planning system while supporting nature recovery.

Our perspective?: We anticipate a period of adjustment throughout the rest of 2024 as developers and landowners adapt to the new system. However, we also foresee significant opportunities for those who can navigate this new landscape effectively. As this happens, we’ll start to see the market develop and deals become more regular. Ideally, we’ll see more collaboration to ensure better quality BNG that relates to locally defined nature recovery objectives and starting to address wider outcomes.

Conclusion

The first six months of mandatory BNG have demonstrated both the challenges and potential of this groundbreaking approach to development. At BNG Finder, we're committed to helping landowners and developers navigate this new terrain, facilitating matches that benefit both parties while contributing to the UK's biodiversity goals.

Whether you're a developer seeking BNG solutions or a landowner looking to capitalise on this new market, BNG Finder is here to help.

Biodiversity Net Gain August Update: New Horizons for Sustainable Development

Mon, 05 Aug 2024 13:20:06 GMT

In the quest for sustainable development, the concept of biodiversity net gain has emerged as a pivotal strategy, aiming to leave the environment in a better state than before a development has taken place. Recent updates to the Statutory Biodiversity Metric and the introduction of a formal appeal process for biodiversity gain plans mark significant milestones in this journey. This article looks into these developments, shedding light on their implications for developers and landowners.

The Appeal Process: A Pathway to Resolution

Recognising the potential for disagreements between developers and Local Planning Authorities, the government has established a clear appeal process under section 78 of the Town and Country Planning Act. This mechanism allows developers to appeal to the Secretary of State if their biodiversity gain plan is refused or fails to be determined within the stipulated time frame. Such appeals are handled by the Planning Inspectorate, providing a structured pathway for resolution.

Developers have six months from the date of refusal or the deadline for determination to submit an appeal. This process underscores the government's commitment to facilitating dialogue and ensuring that biodiversity net gain objectives can be met through collaborative efforts.

Enhancements to the Statutory Biodiversity Metric

The Statutory Biodiversity Metric has also been refined to offer greater clarity and precision in assessing biodiversity impacts. Key updates include:

User Guide Clarifications: Detailed guidance on strategic significance categories, intertidal habitat restoration, phased construction, and spatial risk multipliers. This ensures a comprehensive understanding and accurate application of the metric across various projects.
Tool Changes: Introduction of mandatory fields for completion details and adjustments to calculation methodologies. These changes aim to enhance user experience and ensure precise biodiversity unit calculations.

Focus on Irreplaceable Habitats : Enhanced measures to protect irreplaceable habitats, including restrictions on enhancements and bespoke compensation options. This reflects a commitment to preserving unique ecological assets moving forward.

These updates signify a move towards a more nuanced and effective approach to biodiversity assessment, facilitating better decision-making in development planning. Please keep in mind that the previously published version of the Statutory Biodiversity Metric still remains as a legally valid option and there is no requirement to move to this newer version at this time.

Conclusion

The recent developments in biodiversity net gain policy and practice in England represent a significant step forward in integrating environmental considerations into development processes. By providing clear guidelines, appeal mechanisms, and refined assessment tools, the government is helping to foster a culture of responsibility and innovation in sustainable development.

Biodiversity Net Gain Comes into Force for Major Developments

Mon, 12 Feb 2024 12:17:11 GMT

From today, 12 February 2024, all major developments in England are required to deliver at least a 10% benefit for nature (biodiversity net gain). This legislation is the first of its kind in the world, making England a frontrunner in legal requirements that give back positively to nature.

Originally introduced through the Environment Act 2021, biodiversity net gain (BNG) means that housing, commercial, and infrastructure projects must demonstrate at least a 10% increase in habitat value for wildlife compared to the site’s pre-development baseline. Developers can achieve these gains on-site, off-site, or through purchasing statutory credits from the government, which must be as a last resort.

Despite today being the day that BNG becomes a legal requirement, many developers have already been successful in recognising BNG as a beneficial practice for developer, landowner, and nature. BNG becoming mandatory will now see these benefits spread on a much larger scale throughout the country.

BNG for small sites will still be applicable from April 2024, and implementation for Nationally Significant Infrastructure Projects remains planned for 2025. BNG will prioritise on-site nature development to deliver the maximum benefits for people and nature.

For more information on how BNG works, our blogs and news items that delve into the specific elements of BNG; including our Green Finance Deep Dive series and our Guidance for Developers piece .

BNG Finder is a curated finding service enabling seamless transactions of biodiversity units accelerating positive outcomes for the environment. Get in touch with us today for more details on how we can assist you with off-site BNG contributions.

Biodiversity Net Gain: What Developers Need to Know

Wed, 24 Jan 2024 09:33:51 GMT

Last week, Defra announced the official implementation date for Biodiversity Net Gain (BNG); 12 February 2024. This implementation date is less than a month away, and there's no doubt that that it will come around incredibly quickly. To help you get prepared, we've put this blog together that will explore the key aspects of BNG that developers should know before it comes into force, so you can understand how it works and how you can successfully integrate it into your development projects.

A Little Background on Biodiversity Net Gain

BNG is an approach to development that aims to leave the natural environment in a measurably better state than before. Under BNG requirements, construction, infrastructure, and development projects must demonstrate at least a 10% increase in biodiversity units compared to the pre-development baseline.

This is achieved through actions like creating or enhancing habitats, planting more trees and vegetation, improving water and soil quality, and other initiatives that support wildlife and ecosystem health. The goal is to halt and ultimately reverse biodiversity loss. While BNG represents a higher environmental standard, it offers benefits for communities and helps move us toward greater sustainability. You can read more about BNG itself in our Green Finance Deep Dive Series .

Are You Exempt From BNG?

Firstly, it’s a good idea to check if your development falls under the BNG exemptions. As of this blog's publication date, the new rules are only applicable to ‘major developments’ from 12 February 2024. Small sites are developments that don’t fall into the ‘major development’ category and are currently exempt from BNG requirements until 2 April 2024.

If you want to check if your development is considered a small site, the criteria for small sites is as follows:

A residential development where the number of dwellings is between 1 and 9, or if this is unknown, the site area is less than 0.5 hectares.
A commercial development where floor space created is less than 1,000 square metres or total site area is less than 1 hectare.
A development that is not the winning and working of minerals or the use of land for mineral-working deposits.
A development that is not waste development.

You can find more information on what is classified as a ‘major development’ in article 2(1) of the Town and Country Planning (Development Management Procedure) (England) Order 2015 .

More possible exemptions that may apply to you

Small sites aren’t the only development exemption. As of January 2024, you won’t need to worry about BNG if your development is one of the following:

Applications made by householders: Planning permission applications for small home projects such as extensions, conservatories, and loft conversions.

Developments made for biodiversity gain: A simple one, if your development is being undertaken to fulfil the BNG planning condition for a different development, it will be exempt.

Developments below the threshold: BNG only applies to developments that impact priority habitat and impacts more than 25 square metres of habitat, or 5 metres of linear habitats such as hedgerows. Anything under this threshold is exempt.

Self/custom build applications: As long as it consists of no more than 9 dwellings and is on a site no larger than 0.5 hectares, any self/custom built homes that fall under the definition of section 1(A1) of the Self-build and Custom Housebuilding Act 2015 will be exempt.

High speed rail networks: Any developments that form part of or are ancillary to the high speed railway transport network.

How to hit at least 10% BNG

Unless your development falls under the exemptions listed above, developers of major developments in England are required to provide 10% BNG once it becomes mandatory from 12 February 2024.

As of January 2024, there are currently three main ways a developer can achieve the 10% BNG goal; helping to avoid detrimental loss of biodiverse habitat that usually comes with development work. These fall into the biodiversity gain hierarchy, and are as follows:

On-site: The first option is to enhance and restore biodiversity on-site. ‘On-site’ refers to everything within the red line boundary of a development site.

Off-site: If the entire 10% BNG can’t be achieved on-site, developers can pursue off-site options as well to fill in the gaps. This can be done through making off-site biodiversity gains on their own land outside the development site, or through purchasing off-site biodiversity units on the market through curated finding services such as BNG Finder.

Biodiversity credits: As a last resort, developers must buy statutory biodiversity credits from the government if they can’t achieve 10% BNG on-site or off-site. The credit purchase will help to invest in habitat creation in England.

All three available options have their own separate steps when following the process, and they are outlined in full on the GOV.UK site here .

What You're Already Doing That May Count Towards Your BNG

If your development is already creating or enhancing habitat, you might luck in and be able to count this towards your 10% BNG goal. You can still contribute to your BNG goal if the habitat needed for your development is to:

Comply with a statutory obligation or policy, E.g. green infrastructure, environmental impact assessment (EIA) compensation or sustainable drainage
Provide river basin management plan (RBMP) mitigation and enhancement measures; or
Provide mitigation or compensation for protected species or sites, E.g. nutrient mitigation

Off-site mitigation and compensation for protected sites and species can count towards your BNG too, but at least a portion of your 10% increase should be through other measures that aren’t off-site, E.g. on-site habitat creation.

Note - Unfortunately, habitat creation/enhancement projects won’t count towards BNG if you already need to do this for:

restocking conditions relating to a tree felling licence or a restocking notice,
marine licensing; or
remediation under the environmental damage regulations.

Making sense of the biodiversity metric

The biodiversity metric is the go-to when it comes to measuring biodiversity value for the purposes of achieving 10% BNG. Using a standardised ‘biodiversity units’ measurement, the metric can measure the biodiversity value of different habitats such as grassland, hedgerows, woodland, lakes, rivers, and streams.

As for when you should start using the metric tool, the best advice is to start using it as early as possible in the process as it is fundamental for BNG. This will help you to get comfortable with it early on, which will help you make decisions and avoid biodiversity loss.

While taking different factors into account such as size, quality, location, and type; the metric will calculate:

how many biodiversity units a habitat contains before development takes place; and
how many biodiversity units are needed to replace the units of habitat lost and to achieve 10% BNG, through the creation or enhancement of habitat

For created or enhanced habitats, the metric formula also takes account of:

difficulty of creation or enhancement
the time it takes a habitat to reach its target condition
distance from the habitat loss

As of January 2024, the metric and its accompanying tool should be used for:

Major developments now that BNG is mandatory
Small sites once BNG applies from April 2024
Nationally significant infrastructure projects from November 2025

As for the benefits of using the metric tool, developers can assess the number of biodiversity units found in a proposed development site, how this value could be lost through development, and what developers need to do to achieve BNG.

If you haven’t achieved 10% BNG and you need to make off-site gains to help make up the difference, the metric tool is useful here as it can calculate what off-site gains you would need.

As for actually using the metric tool, full details can be found in the biodiversity metric tool user guide . As a rule of thumb, it’s a good idea to consult a professional ecologist on the matter, as they will be able to use the tool and advise on any calculations. The local planning authority will review these calculations and reject them if they have any doubts that the calculations haven’t been provided by an expert.

While the ecologist will draw relevant data on the different types of habitat parcels such as their condition and their size. It will be your responsibility to ensure that the data they draw is accurate! If this is being done on-site, everything within the red line boundary must be included.

Looking to buy off-site biodiversity units? Here’s how

A question that has begun floating around is how developers can actually buy BNG units considering the current lack of any formal BNG marketplace. With 10% BNG soon to be mandatory, it is vital that developers and landowners are provided with the resources to make the transaction process of off-site units straightforward and easy to use.

To fill this gap and accelerate positive outcomes for the environment, we recently launched BNG Finder . This fast and reliable tailored marketplace experience offers a personalised selection of relevant sellers of high integrity BNG units so that you can start making off-site contributions towards 10% BNG.

When buying off-site units, it’s generally a good idea to purchase them as close to the development as possible. The biodiversity metric incentivises off-site gains close to the development so that local communities can benefit from it. The metric will apply a spatial risk multiplier score with a higher score for compensation within the LPA or National Character Area (NCA). The next highest score is for being within a neighbouring LPA or NCA, and the lowest score for compensation is for being outside neighbouring LPAs and NCAs. The lower the spatial risk score, the higher the number of units a developer will need to purchase to meet their requirements.

For more details on BNG Finder and what it can do for you, read more about the service on our website here .

Green Finance Deep Dive Series: Biodiversity Net Gain

Fri, 22 Sep 2023 11:38:31 GMT

Welcome to the first edition of Accelar’s new Nature Finance Deep Dive series, where we take a regular look at the latest topics in green finance and nature recovery. With a constant influx of new policies and tools, this series aims to cut through the technical jargon and break down the key takeaways and impacts for each topic. Our first article focuses on Biodiversity Net Gain (BNG), a concept that will become particularly significant in the next few months as it has been recently announced by the Government that legislation to bring in BNG as a standardised and mandated policy will be published in November. This feature looks at what developments and opportunities are happening in the BNG space, and what it will mean for landowners and developers.

What is BNG all about?

BNG in its simplest form is a planning requirement that is targeted at new developments, so that nature doesn’t lose out [1] . It places a requirement so that if a loss of habitat is expected a result of a development, other habitat must be created. Preferably on-site, but if that is not possible then off-site (on-site meaning the land being developed, and off-site meaning land away from the development site).

BNG seeks to enhance the overall value of natural capital as part of Defra’s long term nature ambitions. It is introduced to help protect nature and continue the flow of regulating services. It acknowledges the value of the natural environment through the lens of improving wildlife, cleaner air and water, natural flood management, educational opportunities. These are all ecosystem services that are introduced when biodiversity is created. The aim of BNG is not only to increase the amount of biodiversity in England, but also to enhance existing habitats. There has been a 13% decrease in average abundance of wildlife in the UK since the 1970s according to the State of Nature Report [2] .

The UK government has introduced new policies under the Environment Act 2021 for mandatory BNG. The Government has said that BNG will become mandatory for all planning permissions in England from January 2024, and for small sites from April 2024. The Act will require that all biodiversity be not only replaced but increased by a minimum of 10% post-development. On completion of the development, the habitat enhancement will be required to be maintained for at least 30 years. The National Planning Policy Framework [3] (NPPF) also sets out the government’s planning policies and guidance on how these should be applied, which incorporates the delivery of BNG policy.

Biodiversity units are calculated through the Biodiversity Metric 4.0 [4] tool from Natural England, the Government’s advisor for the natural environment in England. The units represent a measure used to evaluate the amount of biodiversity in a specific area. The metric uses various factors such as habitat type, size, quality, and location to determine value. It is important to note that area habitats are measured differently to linear habitats (such as watercourses and hedgerows), therefore these must be dealt with individually within three separate ‘modules’ of the metric. Units located on-site are the preferred approach and may be generated by local enhancement through means such as habitat creation and green infrastructure. Off-site units may be required if there is an insufficient natural capital opportunity within the development to meet BNG requirements. Statutory credits come into play if a developer is unable to meet mandatory BNG requirements through on-site or off-site units. Defra recently released the guide prices and information on calculating costs for developers buying statutory credits [5] . These credits are valued by habitat type and distinctiveness. The credits range from £42,000 to £650,000 (e.g., for peat lakes) per credit.

A new nature market

One of the aims behind this part of the new Environment Act is to create a new compliance market for biodiversity. To understand the growth in environmental markets, one only has to look at the UK’s carbon markets. The current state of UK nature markets is small scale, but they are predicted to develop quickly over the next few years [6 ] . The fact that carbon has become an established market is evidence to suggest the future opportunity for the biodiversity unit market. The UK Woodland Carbon Code (WCC) alone has validated units for 1 million tCO2e sequestered in the most recent annual period of data recorded and has achieved an average growth rate of carbon units created of 28% between 2018 and 2022.

Currently, there is no plan for a government provided platform to facilitate the trading of biodiversity units. However, Defra will introduce a national register in November 2023 to enable the recording and validation of off-site habitats as BNG units. It will be primarily tailored for landowners, agents, and developers, but may be necessary for ecologists and Local Planning Authorities (LPAs) to utilise it.

It is also expected that BNG marketplace platforms provided by the private sector will appear as BNG becomes mandatory for through the planning system. The BNG market also has a potential global scalability and allows opportunities for landowners to access the ecosystem trading market. Whilst only focused on biodiversity, with careful consideration of other impacts it could effectively contribute to a more holistic “environmental net gain” and can link to broader sustainability goals [7] .

In January 2022, Defra released their market analysis report [8] . In the report, an assessment was undertaken of potential scarcity of biodiversity units in Local Planning Authorities (LPAs). They used a simple ratio, comparing the total potential supply of biodiversity units to the annual demand. For every 1 unit of demand annually, the total supply must be at 100 units to meet expected demand over 10 years, indicating a risk of market scarcity. Essentially, an LPA needs to have a supply of biodiversity units at least 10 times greater than the annual demand over 10 years to meet expectations. This highlights the importance of having a substantial supply to meet demand to maintain biodiversity effectively. Fortunately, there are already a pipeline of habitat creation projects and biodiversity unit suppliers in England that will hopefully become available in time to meet initial demand.

The report outlined that 6,200 off-site BNG units are estimated to be required per annum. Additionally, according to Natural England [9] , the market is expected to be worth £135m - £274m annually. Any landowner in England can provide units if they meet the eligibility criteria [10] . BNG can act as an opportunity for landowners to secure a long-term inc ome stream, whilst creating positive environmental outcomes.

How BNG sits alongside other environmental gains

Landowners/agents may also want to consider combining the provision of BNG units with other environmental payments through stacking and bundling of different ecosystem services. Stacking involves overlapping ecosystem services on a piece of land into different credits, whilst bundling involves selling a suite of ecosystem services as a single package to the same buyer. This gets complicated so to ensure high integrity environmental outcomes, needs to happen within certain rules e.g. to avoid “double counting”. Landowners and agents can enhance their environmental impact by combining BNG units with other environmental payments through these methods, encompassing water quality improvements, natural flood management, and amenity value. The current guidance notes that credits like biodiversity units and nutrient credits cannot be sold from the same land unless habitat enhancement is possible without adverse effects on carbon value. There will be more clarification as the BSI nature standards are created [11] .

The creation of BNG units comes under the umbrella of Environmental Net Gain (ENG), defined by the UK National Infrastructure Commission as an approach to development that aims to leave biodiversity and the environment in a measurably better state prior to the development. It can be measured through biodiversity, ecosystem services and environmental metrics. ENG and BNG must work hand in hand to support a long-term change in how developments contribute positively to nature.

Case studies and pilot projects:

Natural England has highlighted several case studies to be used as guidance for developers and landowners on how they can enter the BNG market. They have also introduced several pilot project sites which will support the design of the BNG statutory credits scheme. These sites provide useful insights on how landowners can get their land ready for BNG.

Biodiversity Metric 4.0 Case Study 1: Residential Development

This hypothetical case study describes the development of a medium-sized residential area and highlights the importance of considering BNG requirements early in the design phase. It compares two scenarios. Read more here .

The Iford Biodiversity Project

The Iford Biodiversity Project , based in East Sussex, is a pilot project from Natural England and aims to deliver over 3,000 BNG units. The estate has started to develop 1,200 hectares of farmland into habitats such as grassland, floodplains, and ponds. The projected has conducted habitat and species surveys and assessments to ensure they are in the best position to offer BNG units to developers.

Spains Hall Estate

Spains Hall Estate is a pilot project of Natural England and presents an opportunity for BNG. The project plans to deliver over 500 BNG units over 115 hectares to developers in addition to delivering a variety of other ecosystem services such as: natural flood management, water quality enhancement, water resource availability, carbon credits, and social and environmental impact. These ecosystem services can be sold alongside BNG units through stacking or bundling.

Many stakeholders are in the process of comprehending the recent guidance and requirements for mandatory BNG. BNG offers a promising opportunity for landowners, and the market is anticipated to develop rapidly. Early preparation will enable a smoother transition come November. Please get in touch if you’d like to learn more about BNG, or to understand how it could work for you. We have experience in developing nature credits, and also for helping developers meet their environmental commitments. For more information on how various projects are preparing biodiversity units for BNG, you can view our Nature Finance Impact Hub (free registration). Please drop us a line to sign up to receive further information on BNG and nature finance.

UPDATED 28/09/23 to reflect the latest BNG announcement .

Groundwork launches a new environmental investor portfolio

Thu, 10 Aug 2023 13:02:36 GMT

Over the past nine months, Accelar has been working with Groundwork North East and Cumbria on its ‘Revitalising our Estuaries’ project, focusing on the restoration and sustainable finance elements of six estuaries in the northeast. Working alongside JBA Consulting to analyse data from a range of estuary interventions, Accelar has developed a bespoke financial model to help attract sustainable investment. Read the press release below to find out more about the project, and to get a copy of the investor portfolio.

North East businesses and organisations looking to build, or enhance their corporate environmental and sustainability strategies, can explore unique opportunities to work with Groundwork NE & Cumbria through its new investor portfolio. With a pedigree of 40 years in environmental and community action, Groundwork is currently championing a range of Nature-based Solutions (NbS) designed to conserve, restore, or better manage ecosystems to remove carbon dioxide (CO2) from the atmosphere and tackle climate change.

In the North East, Groundwork’s NbS efforts focus largely on its Revitalising Our Estuaries programme with work across six river estuaries and communities in the region from Northumberland to North Yorkshire. The work ranges from designing and building innovative floating ecosystems on the river Tyne to restoring salt marshes on the Wansbeck, and installing artificial habitats for marine life including living sea walls, floating rock pools and fish shelters in Whitby harbour. The work is dynamic, ground-breaking and is helping scientists advance their knowledge in the fight against climate change.

To help the cause, Groundwork is offering businesses the chance to fund this work, and in return, be able to demonstrate the contribution their investment has made in delivering environmental improvements. A range of metrics are used including carbon storage, biodiversity, water quality, health and wellbeing, employment and training as well as flood mitigation and improvements in amenity. Groundwork also offers businesses practical opportunities to get involved in community and environmental projects, with hands-on volunteering schemes. These efforts help motivate staff, improve employee relations, attract talent and make a difference in the communities businesses both live and work.

“To create a more climate resilient future for our estuaries it will be important to secure long-term funding and we are pleased to be contributing to this important work."

STEVE MASLEN,
PROJECT DIRECTOR - JBA

A crucial development in Groundwork’s Investor Portfolio initiative is its work with two leading environmental consultancies and green finance experts. Groundwork is building monitoring and evaluation tools to be able to offer businesses clear, audited reporting on returns on investment. Investors will receive credit for the environmental and social benefits delivered, access to annual updates on the work and its progress, together with photographs and 5-yearly monitoring results.

“With estuaries offering so many opportunities for local biodiversity improvements, carbon sequestration and other ecosystem services, it is exciting to be working with different stakeholders to forge a mutually beneficial and repeatable investment model.”

CHRIS FRY, MANAGING DIRECTOR - ACCELAR

The programme is also looking to identify how investment in Nature-based Solutions can be scaled up in future. Creating and testing this sustainable finance model is being undertaken by JBA Consulting in collaboration with green finance specialists Accelar. The work is one of a number of trailblazing nature finance projects across England supported by the Environment Agency’s Natural Environment Investment Readiness Fund (NEIRF).

“Groundwork is renowned for its pioneering environmental projects and is delighted to have been granted the NEIRF Funding to advance its Nature-based Solutions programme. To finance these programmes, we have developed a package for corporate investors to support our works while dovetailing with their own corporate sustainability goals. We will carry out research with businesses to find out what areas of NbS work they are most interested in, and this feedback will help us further develop our investor portfolio. We are committed to building strong business partnerships to advance our environmental and sustainability goals.”

HELLEN HORNBY, NbS PROJECT MANAGER - GROUNDWORK

Businesses interested in exploring Investor Portfolio opportunities with Groundwork should contact: gnec.development@groundwork.org.uk . For more information on this release, for interviews and images please call Sara Ragan, Garage PR on 0754 0059763.

Groundwork North East & Cumbria

Groundwork is a federation of charities mobilising practical community action on poverty and the environment across the UK. The charity is passionate about creating a future where every neighbourhood is vibrant and green, every community is strong and able to shape its own destiny and no one is held back by their background or circumstances. Find out more here .

NEIRF

JBA Consulting is part of the JBA Group - a family of environmental, engineering and risk management companies. All committed to exceptional client service and leading on creating more climate-resilient environments and communities. JBA are leading engineers, environmental consultants, data analysts, designers and scientists, and much more – managing climate, weather, flood and environmental risks and opportunities for their clients. With an ambition to lead in society’s pursuit of resilience to climate change. For further information please visit their website .

Accelar is a strategy and sustainability consultancy, and our purpose is to accelerate the green transition. We help companies, public and third-sector clients to grasp the opportunities associated with green finance and sustainable infrastructure & the built environment. For further information please visit our website . Accelar hosts the Nature Finance Impact Hub which helps investors, buyers and project developers by pinpointing the financial and environmental impacts of nature-positive projects. For further information see www.accelerategreenfinance.com .

For all press enquiries please contact Chris Fry via +44 7986 555168 or cfry@accelar.co.uk .

Beyond carbon: The business case for holistic action

Thu, 22 Jun 2023 13:02:35 GMT

The latest research by Accelar into the sustainability commitments of FTSE350 companies has been published by SustMeme this week. In a guest blog which is shared below, Clare Ollerenshaw sets out the need for businesses to look beyond carbon in order to take meaningful action to meet environmental and climate targets.

We are grateful to SustMeme for publishing these insights from our research and you can view the original article and explore the latest other corporate sustainability and innovation content here . To find out more about how Accelar is supporting businesses to accelerate the green transition, grow their business sustainably and engage with high integrity UK offset markets, check out our services page or contact Clare Ollerenshaw .

The 2023 synthesis report from the Intergovernmental Panel on Climate Change (IPCC) was underpinned by a pivotal message: this decade represents humanity’s last opportunity to take action to limit global warming to 1.5 degrees. Whilst a large portion of this responsibility undoubtedly falls on global leaders and governments, large businesses and corporations, in collaboration with their supply chains, also have a critical role to play. So, how well are they rising to the challenge?

More commitments made public

Well, in recent years, an increasing number of businesses have been publicly pledging their commitment to environmental sustainability. They have been making some of the right noises. This trend has been driven by a combination of factors, including tighter environmental regulations, growing customer demand for less environmentally impactful products and services, and a genuine desire amongst companies to reduce their carbon footprint and contribute to a more sustainable future. However, when we take a closer look at those commitments, the focus soon starts to narrow.

Narrow focus in the FTSE 350

Accelar carried out data analysis to explore these trends in more detail, looking at businesses on the FTSE 350 Index, which comprises the 350 largest companies listed on the London Stock Exchange. Accelar reviewed the websites of 88 FTSE 350 businesses, analysing publicly stated organisational commitments to managing carbon, working with nature, managing resources and climate resilience.

Of the 88 businesses put under the microscope, our analysis discovered:

58 have made public their carbon commitments;
19 have made public their nature commitments;
25 have made public their resource, materials and circular economy commitments; and
5 have made public their climate resilience commitments.

In terms of the thematic mix of commitments made, our study of the 88 also revealed:

25 have made a public commitment on 1 theme;
37 have made public commitments on 2 themes;
3 have made public commitments on 3 themes, or more; but
23 have made no public commitments, at all.

Risk of ‘Carbon Tunnel Vision’

It was no surprise that the most popular theme proved to be carbon, with 58 of the 88 companies making a public commitment. Especially at a time of spiralling energy costs and a gas crisis in Europe, carbon reduction is undoubtedly one of the biggest challenges for business, today. However, for that same reason, it is all too easy for carbon to become the sole focus of a company’s environmental action plan. This can result in what is known as ‘Carbon Tunnel Vision’ .

Carbon Tunnel Vision is where a narrow focus on carbon reduction is pursued almost exclusively, often at the expense of other important areas like circular economy, biodiversity, and climate resilience. There is even a risk of unintended consequences arising out of this unhealthy obsession with carbon. So, in order to achieve effective and urgent climate action, organisations will need to look further than just carbon reduction and embrace a more holistic approach to net zero. By prioritising a broad range of sustainability areas, businesses can achieve effective and urgent climate action while also contributing to carbon reductions. Broadening the scope of commitments to incorporate other key focus areas such as circular economy and biodiversity can bring wider co-benefits for business, over and above just carbon reduction.

As regards biodiversity, our research found that 21% of businesses have made a commitment, which might arguably be seen as a relatively encouraging sign. In the UK, for example, this may increase further as government mandates for minimum Biodiversity Net Gain (BNG) come into place, helping to boost the topic’s profile within the built environment sector.

Much less positive was the data around climate resilience, with only 5 businesses out of 88 having made public commitments on what is now a key issue for business. Climate resilience strategies are not only important in terms of both policy and investors, but practically, as well. By setting resilience targets, companies can proactively identify and address potential risks to their operations and ensure continuity, plus stay ahead of regulatory requirements. This area is set to become business-critical for most organisations within the next five years, which is why a more holistic approach to environmental commitments is not just desirable, but essential.