This short blog will highlight the key risks associated with Biodiversity Net Gain (BNG) for developers. BNG has become a mandatory consideration for all development projects in England, acting as a planning condition and policy requirement of planning consent. It requires developers to improve biodiversity as part of their pre-development plans, and failure to comply can have significant consequences.
The key risks to be aware of are as follows:
Availability of Offsite Units: Developers may face challenges in sourcing suitable offsite units to meet BNG requirements. The availability of these units can vary, and if a shortfall remains after exploring onsite and local offsite options, developers may need to purchase statutory biodiversity credits from the government as a last resort (see table below.)
Temporal Risk: Timely implementation of BNG is crucial. Developers must ensure they are prepared to meet the obligations within the specified timeframe. Failure to comply with BNG requirements can result in delays or potential penalties.
Spatial Multiplier: The spatial multiplier, which accounts for the spatial distribution of biodiversity gains, needs to be accurately considered when calculating the number of units required to achieve BNG. Failure to do so can lead to underestimating or overestimating the number of units needed, potentially resulting in non-compliance.
Government's Statutory BNG Credit Pricing: The government has introduced price tiers for statutory biodiversity credits, which developers can purchase to meet BNG requirements. Understanding the pricing structure is essential for developers to factor it into their financial planning.
See extract pricing table from the Government's statutory biodiversity credit prices
N.B: If you buy statutory biodiversity credits, a ‘spatial risk multiplier’ will apply, which doubles the amount of credits you need. You must buy 2 credits for every 1 biodiversity unit you need to compensate for. The statutory biodiversity metric will automatically calculate this multiplication for you.
Habitat distinctiveness | Broad habitat type | Specific habitat type | Price per credit | Spatial risk multiplier |
Medium | Heathland and shrub | All | £42,000 | £84,000 |
Medium | Grassland | All | £42,000 | £84,000 |
Medium | Individual trees | All | £42,000 | £84,000 |
Proper preparation and strategic planning can help mitigate these risks. At Habitat Vault, we specialise in BNG and can assist you in navigating the complexities of BNG implementation, ensuring compliance, and minimising potential risks.
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