Over the past decade, environmental policy in the United Kingdom has undergone a transformation. This shift is epitomised by Biodiversity Net Gain (BNG), a legal requirement embedded within the Environment Act 2021. At its heart, BNG is a framework designed to ensure that new developments leave the natural environment in a measurably better state than before. For landowners, this is more than just a legal obligation, it is a gateway to significant opportunities, from financial returns to the enhancement of natural capital.
Yet, understanding how to navigate BNG can be challenging. For those who own land – whether large estates, family farms, or smaller parcels – Biodiversity Net Gain represents a new frontier, and one that must be approached with both knowledge and care. At Buckles Solicitors, our role is to help landowners unlock the benefits of this initiative while safeguarding their interests.
Understanding Biodiversity Net Gain
BNG is rooted in the principle of environmental enhancement. Under the Environment Act 2021, any new development must result in a measurable improvement to biodiversity, calculated as a minimum 10% uplift in ecological value. This can be achieved either directly on the development site, nearby, or through the creation or enhancement of habitats elsewhere – an approach that opens the door for private landowners.
From February 2024, Biodiversity Net Gain became mandatory for major developments in England, with smaller projects following suit in April 2024. Local planning authorities are now tasked with ensuring that BNG is properly incorporated into development proposals, making it a core aspect of the planning process.
For developers, this is a challenge. For landowners, it is an opportunity.
Why BNG matters to landowners
BNG can help landlords to transform any underutilised or marginal land into a valuable source of revenue. Rather than allowing land to lie fallow or yield limited agricultural returns, landowners can offer it as a site for biodiversity enhancement, receiving payments in return. These payments may come from developers who need to offset their ecological impact or through partnership schemes with organisations like Environment Bank.
The principle is simple: by maintaining land in a way that improves its biodiversity value, whether through creating wildflower meadows, wetlands, woodlands, or other habitats, landowners can generate biodiversity credits, which can then, in turn, be sold on to developers who require them to meet their BNG obligations.
But the benefits of Biodiversity Net Gain go beyond immediate financial gain. Landowners can enhance the ecological value of their estates, contribute to national environmental goals, and even increase the overall value of their land. BNG aligns land management with sustainability, offering a way for landowners to participate in positive environmental change without sacrificing financial returns.
Unlocking the benefits of BNG
The journey to unlocking the benefits of Biodiversity Net Gain begins with a careful understanding of your land and its potential. Not every parcel is suitable for biodiversity enhancement, and the process demands a strategic approach, so it is always wise to enlist specialist support.
- Initial ecological assessment: Every successful BNG scheme begins with knowledge. Landowners must commission a detailed ecological survey, undertaken by qualified professionals, to establish a baseline of existing habitats, plant species, and wildlife. This assessment is not merely a formality – it is the foundation upon which future biodiversity gains are measured. A thorough baseline report provides clarity on what can be achieved and offers a benchmark for demonstrating improvements.
- Choosing the right approach: Once suitability is confirmed, landowners face a crucial decision: whether to partner with an established habitat bank, such as Environment Bank, or to take a more direct approach by managing and selling biodiversity credits independently. The former offers security and professional management, while the latter offers the potential for higher returns but with greater complexity and risk.
- Securing legal agreements: BNG is not a short-term commitment. It is a 30-year obligation, typically formalised through legally binding agreements such as conservation covenants or Section 106 agreements. These documents are not merely paperwork—they are the legal foundation of a landowner’s engagement in BNG, setting out rights, responsibilities, and protections. At Buckles, we specialise in drafting and negotiating these agreements, ensuring our clients’ interests are safeguarded.
- Implementation and management: Once agreements are in place, the practical work begins. Landowners must carry out the agreed habitat enhancements, whether creating wildflower meadows, planting woodland, or restoring wetland areas. This is not a one-time effort but an ongoing commitment, with regular monitoring, maintenance, and reporting essential to ensure the biodiversity value is achieved and maintained.
Understanding the risks
While Biodiversity Net Gain can be financially rewarding, it is not without risks. Poorly negotiated agreements may leave landowners with burdensome obligations or limit their ability to use the land in other ways. Financially, there are costs associated with habitat creation and management, and revenue may depend on market demand for biodiversity credits.
Legal complexities also abound. Tax treatment of BNG income, eligibility for Agricultural Property Relief, and the potential impact on land value must all be carefully considered. At Buckles, we provide clear advice to help landowners understand these implications and structure their BNG arrangements effectively.
Making Biodiversity Net Gain work for you
BNG represents a groundbreaking opportunity for landowners – one that aligns financial interests with environmental stewardship. But to truly benefit, landowners must approach Biodiversity Net Gain with a clear understanding of the process, the risks, and the legal frameworks involved.
At Buckles Solicitors, we bring extensive experience in agricultural law to help landowners navigate this new landscape. Whether you are exploring the potential of BNG for the first time or seeking to refine your existing arrangements, our team is here to provide expert guidance. Contact us today to learn how we can help you unlock the benefits of Biodiversity Net Gain while safeguarding your interests for generations to come.
