Government confirms commitment to BNG – mandatory requirement to be introduced in 2024
On 26th September the BBC reported that the Government was going to delay the commencement of the 11th November implementation of mandatory Biodiversity Net Gain (BNG), the Government’s flagship scheme under environmental improvement policy. Whilst previously this was expected to be a two-stage process, the second part being April 2024, there is expected to be new dates announced shortly, for next year.
Whilst this might understandably create some concern, we now however have further confirmation that this scheme will be proceeding which is reassuring after the Government’s attempts to row back from the market in NN continuing (see below). BNG is grounded in UK legislation unlike NN and it was becoming clear that the Government would need more time to set things up in time for November without creating a “car crash”. The delay will allow the LPAs space to train staff with central funding, create processes and ease in the integration of BNG as a requirement for new planning applications. This is especially important as there is still a wide variation in how prepared each LPA is with some ready to go now and others not really yet addressing what will be involved. Some already require a 10% gain to be provided whilst others are yet to make this a requirement and as such there is no real change in that voluntary market sales of BNG will continue as before.
Nutrient Neutrality – still on track
The Government had announced plans to scrap the trading of Nutrient Credits in favour of certain Natural England run mitigation schemes through an amendment to the Levelling Up and Regeneration Bill. The amendment was, however, overruled by the House of Lords.
In certain protected areas a developer will still need to show this nutrient neutrality as part of their planning application and where they cannot achieve this themselves, developers are continuing to pay for actions/works to be carried out by landowners as a trade of credits on the open market. Whilst the Government could attempt this again, it would have to be introduced as a separate Bill. This may be less tempting for the Government as its effect is unlikely now to reap any real economic impact prior to the next election expected next year.
Whether as Natural Capital that can be traded or as Natural England run mitigation schemes or ELMS it is vital to understand and assess this asset and how its use might fit in with BNG and other environment works or Government schemes. If you would like an assessment, please email us on nn@townsendcharteredsurveyors.co.uk
Carbon Trading
The carbon credit market has seen recent sales at £25-30/unit for Pending Issuance Units and up to £50/unit for confirmed Woodland Carbon Units. The price per unit is very much dependent on total lot size.
If you are interested in creating new woodland, contact us for not only advice on what grants are available, what sites are most suitable, their design and project implementation/management but most importantly how creation of carbon units’ impact on the early stages of planning a new wood or agroforestry. We are Woodland Carbon Code accredited project managers and our environmental team of ecologists and foresters cover the whole of the UK.
Land Acquisition
As has been the case for the last few years there is strong demand for land suitable for Natural Capital works and the trading thereof. We are acting for clients looking to buy land for these purposes, and demand is likely to increase again after this positive announcement regarding BNG and for land especially in NN priority areas.