Biodiversity, an asset not a hinderance

Biodiversity Net Gain (BNG): A Comprehensive Guide

Biodiversity Net Gain (BNG) is an increasingly vital approach in development and land management aimed at enhancing the natural environment. New legislation set by the UK government is aimed at reducing our impact on the natural environment and reversing the rapidly deceasing biodiversity across the UK. This for the more open minded of us is also an opportunity; an opportunity to design real places where we can create communities, generate low stress and welcoming environments for people to live, undertake activities and work. For the more business minded this is also an opportunity to reduce costs, because if undertaken correctly, exploiting BNG within your projects can reduce the need for sub ground works, material out loads and drainage and road surface materials, alongside many other advantages that add to sales.

This blog delves into the requirements for BNG, its necessities, key benefits for developers, and the bases of calculating biodiversity values, alongside how these values are measured and assured over set legal durations. Each section provides a narrative introduction and links to give more detailed information for further reading if you wish it, so let's look at BNG and why we should exploit them in greater depth.

Understanding Biodiversity Net Gain (BNG)

Biodiversity Net Gain (BNG) is a principle designed to ensure that development and land management practices leave the natural environment in a better state than before. This approach is fundamental for sustainable development and ecological conservation that is now embedded in planning law. Before getting into the detail of the how BNG work it is helpful to understand the process in a simple format. Below is a breakdown of the key areas of the policy as we will address them.

Key Points:

1. Definition: BNG refers to the process of increasing the overall biodiversity value of a development site. The term "net gain" indicates that the development enhances biodiversity rather than diminishing it. More Information: What is BNG?
2. Objective: The primary goal is to ensure that development has a measurable positive impact on biodiversity, leading to better-quality natural habitats post-development and for the foreseeable future. More Information: BNG Objectives
3. Mandatory Requirement: As of 12 February 2024, BNG became mandatory in England under Schedule 7A of the Town and Country Planning Act 1990, requiring a minimum increase of 10% BNG across the developed site (this last part 'developed site' is critical to remember and we will cover in more detail). More Information: BNG Legislation
4. Key Players: who is responsible for which element of the process. Developers: Responsible for ensuring their projects are planned, assessed and delivered to contribute positively to biodiversity of the site on completion of the project and for 30 years after the initial installation. Local Planning Authorities (LPAs): Responsible to assess your declaration and enforce BNG requirements across the planning, delivery and monitoring of the 30 year assessment period. Land Managers: Those involved in the BNG market must understand and comply with BNG requirements, to assure credits meet the legal requirements and are insured against possible risks. More Information: Roles in BNG
5. Onsite and Offsite Gains: what are the different means of addressing biodiversity. Onsite Gains: Enhancing biodiversity within the development site, as set within the land boundary. Offsite Gains: Compensating for onsite biodiversity loss by improving habitats elsewhere, be via BNG credits or projects local to the site or within another area of the UK (as the distance increases from the site, credit values decrease). More Information: Making on-site biodiversity gains as a developer

Mandatory Requirements for BNG

Not all sites will have the same BNG requirements, as they differ based on the scale of the development. Understanding where your site falls within the planning mandate is crucial for compliance and effective implementation. For smaller projects the balance of investment may increase by dropping below key dwelling numbers, so you have a smaller BNG demand, while opening opportunities to increase the value for your site and properties. Let's look at what the requirement levels are and what that means for projects.

Key Points:

1. Small Developments: to allow SME to learn from larger sites best practise the UK government delayed the role out to April 24. With this requirement now firmly set, it is key smaller developments understand both local planning requirements, alongside future local changes and opportunities to help support them in their site planning. Smaller sites under the governments definition may not need an ecologist report to support their applications. BNG for Small Developments Effective Date: Mandatory from 2 April 2024. Definition: Typically, developments with 9 houses or fewer on less than 1 hectare of land, or commercial space of less than 1000 square metres. Process and Resources: If your site fits within the definition you are allowed to use the Small Sites Metric (SSM) Calculation Tool and simplified Habitat Management and Monitoring Plan Template , to assess your site if you have no priority habitats, protected sites or protected species on or near the site. You also no longer need a condition assessment for your project, but it may help you in later quantifying your impact if you do.
2. Large Developments: this was originally planned to come in to effect in 2023 to help smaller developers learn from larger projects, due to weight from major developers the date was ushed back to 2024.BNG for Large Developments Effective Date: Mandatory from 12 February 2024. Definition: Larger-scale projects beyond the scope of small developments. Minimum Requirement: At least 10% BNG. You will need an ecologist to support your assessment and calculate your impact before and after the development, you will also be responsible for future monitoring costs if you do not transfer the site management to another agency which needs to be identified during the planning phase.

Assessing Non-Compliance with BNG

Non-compliance with BNG requirements can have significant repercussions, impacting both the development process and environmental integrity. Though we expect everyone reading this blog is going to comply with the law not doing so, will have an impact on your planning process and could result in heavy fines later in the project if found to be varying away from agreed matrix's.

How can you be impacted:

1. Planning Permission Refusal or Delay: LPAs may refuse or delay planning permissions if BNG requirements are not met.
2. Legal Challenges and Judicial Reviews: Legal actions can be initiated by stakeholders if a development fails to comply with BNG mandates.
3. Enforcement Action and Financial Penalties: Non-compliance can lead to enforcement notices, fines, and other penalties.

Financial Advantages of Early BNG Integration

Incorporating BNG early in project design can yield substantial financial benefits for developers, enhancing both economic and ecological outcomes. It makes sense that developments that look nice to live in will result in better sales, while increased community spaces and facilities are aligned to modern life and key to the desires of modern professional families. In simple terms BNG sites sell, so think families, wild life and water when you set out your plan and align the value of sells to the cost of delivery; you may find density of housing may not be the driving force it once was when you look at the overall balance of investment.

Where can BNG create financial value:

1. Increased Property Value: Properties near green and blue spaces tend to have higher market values.
2. Market Differentiation: BNG can serve as a unique selling point, attracting environmentally conscious buyers.
3. Reduced construction costs: well-planned sites will use natural drainage solutions to support biodiversity, green spaces and align with low impact paving, reducing groundwork, labour, equipment and piping costs.
4. Long-Term Cost Savings: Investments in green infrastructure can reduce long-term maintenance costs, if you let the green grow for insects, you rarely need to mow.
5. Mitigation of Risks: Compliance with BNG reduces legal and reputational risks.
6. Untouched land, or regenerated land earns income: any land not used to offset your project, can be used for income against someone else's. Register a biodiversity gain site

Challenges in Delivering BNG

Despite its benefits, implementing BNG presents several challenges, so understanding these areas can help in strategizing effective solutions early on. Long-Term BNG

What to look and plan for:

1. Cost and Investment: Upfront costs for habitat creation and maintenance can be substantial. So look to protect what? you already have and plan around it. That old pond of scrub land on your site, is now a valued asset.
2. Land Constraints: Limited space for onsite biodiversity enhancements can pose challenges. So think 3-dimensional, walls, roofs and hard surfaces are now opportunities to exploit, low cost green walls and roofs need little maintenance, but poor planning my main they will need to be refurbished during their 30 year life. Work with ecologists and planners to get your green development right and make sure its covered in your buyer agreements, no to remove them.
3. Ecological Expertise: Access to skilled ecologists is necessary for effective BNG implementation. We have a shortage of specialists, so what can you do? Break the site down into smaller projects could be a solution for medium size projects, but you could generate your own via apprentices or work with trusts that specialise in this area.
4. Long-Term Commitment: BNG often requires a 30-year or more commitment to habitat management. So think about this at the beginning, are you going to create a management company, or work with an existing organisation to take over your responsibility to management these across the 30-year commitment.

Calculating Biodiversity Values

Accurate calculation of biodiversity values is crucial for achieving BNG. This involves using a standardised metric to quantify biodiversity gains and losses. These can be difficult to assess and should not be looked at in isolation, otherwise you will design your site as an island surround by nature, or a barrier to it, instead of a integration of your development within nature. We are looking to integrate no separate, to make what the government call beautiful spaces.

So what methods should we use?

1. Statutory Biodiversity Metric: Official method considering habitat types, quality, and other factors to measure biodiversity in units. Biodiversity Metric
2. Using the Metric Tool: Developers must use the statutory biodiversity metric calculation tool, often requiring ecologist input.
3. Net Gain Calculation: Comparing post-development biodiversity values against the baseline to determine net gain. Net Gain Calculation

Measuring and Assuring BNG Over Time

Introduction: So you have your plan in hand, you know what areas you will protect, integrate and create, but to ensure your long-term success, BNG requires continuous monitoring and adaptive management. This ensures that biodiversity gains are sustained, are resilient to changes and are not left to die which could create later litigations.

To enable a detailed plan of limited interaction and maintenance to be undertaken, you need:

1. Baseline Assessment: Conducting an initial assessment of the site’s biodiversity before development begins, will allow you to understand what you need to create. Think of this as an ace up your sleeve, do the assessment early enough and it will identify the value of existing nature of site, protect and integrate it into your site layout. Baseline Assessment
2. Monitoring and Reporting: Implementing a long-term plan to monitor and report on BNG progress. Also think who will do this once the site is completed and you want to sell up and move on. Monitoring BNG
3. Habitat Management and Maintenance: You will need to develop a plan for ongoing habitat management, often spanning 30 years or more, so like the monitoring think who will do this, is there and local company or trust how will take this on, do you need to start up a site management company that takes a ground rent to look have the site. Good planning will make sure you get the best BNG units and lowest maintenance requirements. Habitat Management

Innovative Approaches to Delivering BNG

So we have looked at what is needed and repeatedly the point of early planning and thinking slightly different has been mentioned, so how can we do this in our approach. Thinking outside the box can lead to innovative solutions for integrating BNG into urban and rural developments, enhancing both biodiversity and community well-being, while reducing costs and your need to buy-in units.

Keep it simple but why not think differently:

1. Protect what you have: the best mitigation and definitely the cheapest, is protect what you have, get out your markers and don't grade the site to an inch of its life, as many of them plants and natural features are worth their weight in gold to you.
2. Nature-Based Solutions (NbS): Utilising natural processes to address environmental challenges while enhancing biodiversity. There are many solutions, look at the link for a few ideas, but if you can place swales and use your landscaping to channel water and wildlife, then you don't need to do this via pipe work and ground works, could your park, be made of natural materials with plants integrated and double as a flood plain, move it centrally and place a large soakaway under it and use the excess soil as a natural boundary between the road and your social areas. Think of what adds value to nature and sells. Nature-Based Solutions
3. Living Seawalls and Green Infrastructure: Combining engineering with ecology to support marine life and urban green spaces. As above, it may sound funny but can local waste become art and a home for nature, do it right and its flood resilience as well. Living Seawalls
4. Urban Forests and Pocket Parks: Creating small green spaces within cities to support biodiversity and provide recreational areas. These are great for mental health and air quality as well; families love them, and dogs can run free. Urban Forests

Conclusion: Biodiversity Net Gain represents a transformative approach to development, balancing ecological health with economic growth. By understanding and adhering to BNG requirements, we can contribute to a more sustainable and biodiverse future. The key is to embrace the need early, make it an asset and think about the positive impact including and maximising the benefits of BNG will have on your budget, total site impact and the quality of the lived experience for the occupants, if nothing else moves you to embracing BNG then the fact that if you do if right you will get a better value for your properties and will be more likely to get planning, should be a lever enough.

Written by Peter Egan, Director at EGS Consult

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