Cost of Biodiversity Units & Statutory Credits

female surveyor writing on notepad
female surveyor writing on notepad

Introduction

After a lengthy wait, biodiversity net gain (BNG) made compulsory by the Environment Act is now in shape. Faced with new regulatory problems, developers are researching new avenues to achieve potent biodiversity net gain (BNG) delivery off-site. 

We rely on real-life experiences by some of those already grappling with biodiversity requirements, whether developers or ecologists, to further the opportunities and constraints in off-site delivery of BNG. 

We have a panel of experts in planning and legal on how to obtain at a reasonable expense, biodiversity units which forms a very important function in the planning process.

Are you read for Biodiversity Net Gain (BNG)?

In the case of housing and other big infrastructure to be developed in England, net biodiversity gain is employed under The Environment Act 2021. 

Developers must achieve this now since the transition period ran until November 2023. This new regulatory requirement of this new post-Brexit world has been set by DEFRA and the Environment Agency to try to nationalize best practices currently used to calculate gains and losses in biodiversity through the use of Natural England’s Statutory Biodiversity Metric. 

The Biodiversity Net Gain (BNG) ruling requires that every developer is able to demonstrate and detail the effect a development will have on the environment at the time of applying to planning. It explains how to present the effects of the environment of the development and in what type of language so that it would be understandable to the naturalists, ecologists and scientists who will be judging the application in case of public interest. Essentially, it’s about replacing any lost biodiversity and improving on it. 

Onsite versus offsite

The driver is onsite delivery. However, with the Land Trust recently reporting that 89% of developers think the availability of land for onsite mitigation is the greatest challenge, it is quite likely that a large proportion of Biodiversity Net Gain (BNG) will be delivered offsite. Onsite involves using developmental land to create the habitat. In principle, this seems the easiest solution.

The problem is that, in the legislation, the developer then assumes responsibility not only for the baseline surveys and for the creation of the habitat itself but also for 30 years’ worth of ongoing management and monitoring of the biodiverse habitat that is supposed to replace the biodiversity that is lost. It is therefore best to use a Habitat Bank who take on this liability.

The BNG balancing act: Finding peace with nature and development

Biodiversity net gain has sparked debate in the development industry. 

On one side are advocates who argue that the solution lies with on-site projects that truly immerse developments in nature. 

On the other side are proponents of off-site works as the way to fund peaceful landscape-scale initiatives that have great benefit for development and nature. 

To achieve a “win-win” for both people and nature, the development industry must adopt a whole-system ethos. Otherwise, developments do not benefit either party, which is presumably not the intention behind demanding a net gain. 

Since 12 February 2024, all housebuilders are required to adopt this ethos if they hope to gain planning approval; otherwise, they will achieve the “lose-lose” of either damaging biodiversity on-site or creating a dual system of nature protection that critics have, to a certain extent, described as “Eco-Imperialism.”

Almost every development must generate a thorough biodiversity net gain (BNG) strategy that produces maximum nature gains, but when it comes to clever design that makes room for biodiversity, these opportunities are sometimes lost, or the necessary funding is not available, because creating biodiversity-friendly developments can be expensive. With recent biodiversity offsets in mind, development projects should instead aim to make meaningful inroads toward fashioning a built environment that is not just livable but also kind to nature. We might then stand a better chance of seeing the built environment develop into friendlier territory for the natural world.

The work of the Millennium Ecosystem Assessment and the Natural Capital Committee has demonstrated that placing biodiversity net gain (BNG) habitats on-site can directly disadvantage local communities that may have previously enjoyed unimpeded access to green space. In a study of on-site biodiversity net gain (BNG), researchers from the University of Oxford’s Department of Biology noted that “while the drive for delivering on- site habitats is likely a product of one of the key policy goals to improve public access to green spaces … our evidence demonstrates that this goal is likely to conflict with the other goal to enhance wildlife and ecosystems” (Emily E. Rampling and Sophus O.S.E. zu Ermgassen). This highlights the need for a refined approach to on-site biodiversity net gain (BNG).


Image: surveyor in green taking a photograph.

Habitat Banking for Landowners and Developers

Unproductive farmland can be made to yield something very different and very beneficial. It can be readily transformed—from a place that’s overly disturbed, where shrubs and trees have no safe haven and where bird populations are in steep decline—into an undisturbed place, where potential nesting sites (low shrubs and treetops) are safe from human intrusion. This off-site project can deliver benefits that aren’t always possible within the confines of a development site. 

The concept of habitat banking was born from the understanding that often, even after a developer has followed the mitigation hierarchy, there remain only residual demands to be met—increasingly, those demands add up to just a fraction of an acre of habitat. However, when you pool that demand across several developments in a region, it starts to amount to something significant, and what is even more significant is that those several tracts of pooled habitat start to contribute toward the recovery of nature at a truly large scale. That’s what SME housebuilders now have the option of doing. Habitat Banks offer fractional biodiversity units that, combined with necessary plans and policies, to allow land to be rendered something similar to the habitat that used to be found there.

Without the option of habitat banking, a social housing project that needed to happen would have been stopped. Expecting all developments to provide all their off-site BNG on the development site is unrealistic, especially when the developer is working at the medium and smaller scales. By embracing a community approach to biodiversity net gain (BNG), we can, with the help of landscape architects, create harmonious communities that coexist with nature.

Offsite options allows developers to purchase of Biodiversity Net Gain (BNG) Units that already exist in a scheme, establishing habitats. The team is establishing large-scale habitat banks in each  LPA across England over the next 24 months. Habitat Banks – typically 20 to 100 hectare  sites – are habitats where large-scale restoration of biodiversity is taking place and, managed for 30 years, new habitats of various types are being established. There already  exist habitat banks in most LPAs and we have found that in the great majority of these developers can buy or pre-book the required volume of BNG Units to meet their legal obligation.

When should developers and house builders plan their BNG?

Now, the time to plan is in consideration of just  1 dwelling relevant to section 73 applications and 73A retrospective applications will automatically be tagged with a pre-commencement condition onto any of these. This will outline the submission and approval by the local planning authority in respect of a biodiversity net gain plan before any development commences. So, in short, invest in your BNG strategy now.

The Biodiversity Price Table

Details on terms in the price table ‘Distinctiveness’ is a metric based on habitat type and its distinguishing qualities as it measures an abundance of ecological components. One of them is the kind of habitat or type of association, which leads us to another term you see in the biodiversity metric, ‘Broad’ and ‘specific’ habitat types.

“Broad habitat type” refers to the general habitat type, such as grassland or wetland. Meanwhile “Specific habitat type” means the special kind of habitat you’re dealing with, such as traditional orchards or reedbeds. The numbers in the table are prices per credit so if you buy statutory biodiversity credits, you will need to add a “spatial risk multiplier” (SRM), which basically doubles the number of statutory credits you need to purchase.

The spatial risk multiplier (SRM) certifies that statutory credits will never compete with the development of the off-site market and always be a last resort. For every biodiversity unit you need to compensate for, you must get two statutory credits. The statutory biodiversity metric tool will automatically calculate this for you. However, the prices in the table do not include the SRM.

Below the table shows the ‘tier’ for each habitat type. Statutory biodiversity credits are priced by tier according to habitat type for area-based biodiversity units whilst Hedgerow and watercourse biodiversity units have separate prices.

Area habitats

Low distinctiveness habitats

Habitat distinctiveness Broad habitat type Specific habitat type Price per credit Tier
Low All All £42,000 A1

Medium distinctiveness habitats

Habitat distinctiveness Broad habitat type Specific habitat type Price per credit Tier
Medium Heathland and shrub All £42,000 A1
Medium Grassland All £42,000 A1
Medium Individual trees All £42,000 A1
Medium Urban All £42,000 A1
Medium Cropland All £42,000 A1
Medium Woodland and forest All £48,000 A2
Medium Intertidal sediment All £48,000 A2
Medium Lakes Reservoirs £125,000 A4
Medium Lakes – ponds (non-priority habitat) Ponds £125,000 A4
Medium Sparsely vegetated land Other inland rock and scree £125,000 A4

High distinctiveness habitats

Habitat distinctiveness Broad habitat type Specific habitat type Price per credit Tier
High Wetland Reedbeds £42,000 A1
High Grassland Traditional orchards £42,000 A1
High Grassland Lowland calcareous grassland £48,000 A2
High Grassland Tall herb communities (H6430) £48,000 A2
High Grassland Upland calcareous grassland £48,000 A2
High Heathland and shrub Dunes with sea buckthorn £48,000 A2
High Heathland and shrub Lowland heathland £48,000 A2
High Heathland and shrub Upland heathland £48,000 A2
High Urban Open mosaic habitats on previously developed land £48,000 A2
High Woodland and forest Wet woodland £66,000 A3
High Woodland and forest Felled £66,000 A3
High Woodland and forest Upland birchwoods £66,000 A3
High Intertidal sediment Littoral mud £66,000 A3
High Intertidal sediment Littoral mixed sediments £66,000 A3
High Intertidal sediment Littoral – biogenic reefs – mussels £66,000 A3
High Intertidal sediment Littoral biogenic reefs – Sabellaria £66,000 A3
High Intertidal sediment Features of littoral sediment £66,000 A3
High Intertidal sediment Littoral muddy sand £66,000 A3
High Wetland mosaic Floodplain wetland mosaic (CFGM) £125,000 A4
High Ponds Ponds (priority habitat) £125,000 A4
High Ponds Temporary lakes, ponds and pools £125,000 A4
High Coastal lagoons Coastal lagoons £125,000 A4
High Rocky shore High energy littoral rock £125,000 A4
High Rocky shore Moderate energy littoral rock £125,000 A4
High Rocky shore Low energy littoral rock £125,000 A4
High Rocky shore Features of littoral rock £125,000 A4
High Coastal saltmarsh Saltmarshes and saline reedbeds £125,000 A4
High Intertidal sediment Littoral seagrass £125,000 A4
High Sparsely vegetated land Coastal vegetated shingle £125,000 A4
High Sparsely vegetated land Maritime cliff and slopes £125,000 A4
High Sparsely vegetated land Inland rock outcrop and scree habitats £125,000 A4
High Woodland and forest Upland mixed ashwoods £125,000 A4
High Woodland and forest Native pine woodlands £125,000 A4
High Woodland and forest Lowland mixed deciduous woodland £125,000 A4
High Woodland and forest Lowland beech and yew woodland £125,000 A4
High Woodland and forest Upland oakwood £125,000 A4
High Lakes High alkalinity lakes £650,000 A5
High Lakes Low alkalinity lakes £650,000 A5
High Lakes Marl lakes £650,000 A5
High Lakes Moderate alkalinity lakes £650,000 A5
High Lakes Peat lakes £650,000 A5

Linear habitats

Hedgerow

Habitat distinctiveness Broad habitat type Specific habitat type Price per credit Tier
Various Hedgerow All £44,000 H

Watercourses

Habitat distinctiveness Broad habitat type Specific habitat type Price per credit Tier
Various All watercourses All £230,000 W

 

How can Developers can be helped by Biodiversity Surveyors?

After years of work, rules on the Biodiversity Net Gain (BNG) have finally come into force. It appears that developers have not had much time to adapt to these needs, which has compromised their existing planning applications. Many of these conditions refer to Biodiversity Net Gain (BNG). 

We can, now, with the help of our panel of ecological consultants, organise BNG surveys and biodiversity units. Advanced reservation or booking of Biodiversity Net Gain (BNG) Units can be made to ensure that developers benefit from a well-coordinated, efficient and risk-free solution responding to the needs of developers which meets specifications by the local planning authority for a minimum period of 30 years. Contact us today!