Natural capital

Biodiversity Net Gain (BNG)

Biodiversity Net Gain (BNG) is legislation introduced to ensure the natural environment is left in a measurably better state than before development by enhancing a site's biodiversity value. It is a new approach to development that is mandatory under the Town and Country Planning Act. Developers must commit to creating and improving natural habitats that may have been negatively impacted by development projects by at least 10%.

We act for both developers in securing BNG on-site and for the owners of multiple BNG-specific sites that are either being set up or are currently active.  This is an emerging area of commercial practice and there are only a few schemes set up in the north at present.

Nutrient Neutrality (NN) 

Nutrient Neutrality (NN) is slightly different. It applies only to certain river catchment systems, including the Eden and Derwent in Cumbria and the River Tees. More catchments can be added by government ministers and we expect the number of catchments affected to increase. The legislation seeks to avoid any increase in nutrient runoff in the affected catchments.

Landowners can assist by reducing use of fertilizer on land thus creating nutrient credits which can be sold to regulatory bodies or directly to developers seeking to build within that catchment.

We are advising owners on schemes to create credits, including for sale into national credit banks and developers seeking to establish contracts to purchase credits when needed.   

Developers

Developers can compensate for biodiversity loss in several ways, either by including biodiversity improvements on the same site as their project, purchasing biodiversity units from a provider who has created them on another nearby site, or purchasing biodiversity credits from a government-backed scheme.

Nutrient Neutrality won't be practical to deal with on-site, so it will always require contracting with a third party or government credit scheme.

Farmers and landowners

Farmers and landowners could develop either short-term capital gain or long-term income streams by working with developers to provide off-site BNG on their land.

The sale of BNG units can provide a cash injection to farmers and other landowners. It could be used to fund land improvements, pay for longer-term management or diversification and also make a profit.

It is possible and even encouraged to combine BNG and NN on the same land if ecologically appropriate, a process known as stacking, bundling, or agreements. This will require being in an affected river catchment, but can be an effective multiplier for landowners.  

The land remains in the landowner's ownership and can still be farmed subject to certain restrictions.