Biodiversity Net Gain (BNG)

Biodiversity Net Gain (BNG) 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.

Developers

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

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

Legal support for developers

Negotiating section 106 agreements, including BNG obligations with local authorities for both on and off-site provision.
Advising developers on the purchase of units either unconditionally for existing development or on a conditional or call option basis for future requirements.

Legal support for landowners

Negotiating section 106 agreements or conservation covenants with local authorities to set up BNG schemes
Advising on local land charges and Natural England registrations of a BNG scheme
Setting up sale documents for the sale of units either on a conditional basis or unconditionally for landowners.

We’re proud to be the first provider to have a site placed on the national register and we thank Northumberland County Council and Muckle in helping us achieve this milestone.

We chose to work with Muckle due to their experience in working with Northumberland County Council and their pragmatic approach to the application of this new legislation. BNG is new for everyone, but Muckle was able to work quickly and was extremely responsive throughout. Richard and the team recognise the long-term possibilities of BNG and were hands-on in their approach, with Richard coming along to help plant the first hedge.

Christopher Porter

Landowner

Key Contact

Richard Nixon

Partner

0191 211 7924

Email Richard

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Frequently Asked Questions

What is Biodiversity Net Gain (BNG)?

Biodiversity Net Gain (BNG) is an approach to development and land management that ensures the natural environment is left in a better state than before. It requires developers to assess the impact of their projects on biodiversity and take steps to enhance or restore habitats. BNG is measured as a percentage improvement over the original biodiversity value, with policies typically requiring at least a 10% gain.

It is mandatory under the Environment Act 2001, which amended the Town and Country Planning Act 1990.

How can developers offset the loss of biodiversity with Biodiversity Net Gain (BNG)?

There are three options. Developers can either offset the loss of biodiversity by having BNG on site; this is secured by way of a planning agreement for the development site in the same way as any other planning obligation. Alternatively, they can buy BNG units from a provider who has created them on a different site within the locality on a one-for-one basis or a neighbouring locality at a 33% uplift or nationally at a 100% uplift. If that is not possible, then they can purchase BNG credits from a government-backed scheme again with 100% national uplift.

How is Biodiversity Net Gain (BNG) regulated and monitored?

Local planning authorities regulate sites for BNG in the same way that they regulate on-site BNG; it is monitored with reporting requirements and must be subject to a habitat, maintenance and management plan (HMMP). HMMPs contain details as to the potential habitats created, their starting and target conditions, and the milestones that would be met. All legal agreements for BNG require the land to be kept for that purpose for at least 30 years. There is a small overlap in nutrient neutrality, and it is possible for both to be done on one site depending on the ecology.

What are the benefits of Biodiversity Net Gain (BNG) for landowners?

Setting up this kind of scheme can be a more attractive option for a landowner looking to develop an income stream without having to develop their land or looking for a way to finance green initiatives. The sale of BNG units can provide a cash injection to farmers and other landowners, fund land improvements, pay for longer-term management, fund diversification and also leave a profit element.

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Biodiversity Net Gain (BNG)