BNG Explained: Biodiversity Units vs. Statutory Credits - A Developer's Guide

Navigating Biodiversity Net Gain (BNG) can feel complex. As a developer, understanding the difference between biodiversity units and statutory credits is crucial for achieving a successful and sustainable project. Let's look into it:

Biodiversity Net Gain

BNG mandates a 10% net increase in biodiversity on development projects. This means developments must leave the natural environment in a better state than it was found. The 10% uplift is required whether the development impacts existing biodiversity or not.

To ensure fair and consistent BNG assessments, a specific Biodiversity Metric is used. This metric calculates the ecological value of a habitat based on factors like size, quality, and type.

There are three ways a developer can achieve their 10% biodiversity net gain:

1. On-Site: Enhancing and restoring existing habitats or creating new ones within your development site.
2. Off-Site: If developers cannot achieve all of their BNG on-site, they can deliver through a mixture of on-site and off-site. Developers can either make off-site biodiversity gains on their own land or purchase off-site units to compensate for development-related losses.
3. Purchasing Statutory Credits: If developers cannot achieve on-site OR off-site BNG, they must buy statutory biodiversity credits from the government as a last resort.

Biodiversity Units vs Statutory Credits: Key Differences

Biodiversity Units are purchased on the open market and used to offset BNG when it cannot be fully delivered on-site.

Statutory Credits are biodiversity units purchased directly from the government and are designed to be used as a last resort. For every unit required, two credits must be purchased. They represent a financial contribution towards achieving BNG when maximising on-site and off-site habitat creation isn't feasible. This contribution will be used to fund biodiversity enhancements across England.

Statutory Credits: A Last Resort

Statutory credits should only be used when:

On-site and off-site habitat creation have been maximised. You've explored all reasonable options for enhancing habitats within your development via off-site providers such as ourselves.

Evidence supports the need for credits. You can demonstrate to the Local Planning Authority (LPA) that achieving BNG solely through habitat creation is not feasible.

Important Considerations for Statutory Credits

• Cost: These credits can be expensive, and their availability might vary depending on your location.
• Long-Term Management: Credits may come with ongoing management responsibilities.
• Environmental Impact: On-site or off-site habitat creation offers greater ecological benefits by directly enhancing your local environment.

ILM: Your BNG Partner

Our team at ILM can help you navigate BNG and avoid resorting to purchasing credits with expertise spanning from biodiversity metric calculations to BNG plan development and off-site provision. Contact us today for a consultation and ensure a BNG compliant, sustainable and successful development project.