Biodiversity Net Gain market expected to reach £3bn by 2035

Based on the current number of habitat banks and those in development, the market for mandated Biodiversity Net Gain credits in the UK is expected to reach £3 billion by 2035, a new study has found.

Biodiversity Net Gain (BNG) is a mandatory nature recovery scheme that entered into force in 2024 in the UK, requiring real estate developers and local planning authorities to offset the expected biodiversity loss of their projects through investment in nature recovery – either on or off-site.

Off-site investments are made through the purchase of biodiversity credits sold by land managers conducting nature recovery activities. 

According to Biodiversity Units UK, a marketplace for these biodiversity credits, 15 months after the scheme came into force, over 21,000 acres of land have been allocated to Biodiversity Net Gain Unit creation across England. 

In total, there are 33 habitat bank businesses in the country: these include major national organisations like Environment Bank and The Wildlife Trusts and smaller, independent family-run operators – together managing 93 operational habitat banks.

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Expected biodiversity credit supply and demand

But a look at future developments offers a glimpse into the potential size of the UK’s mandatory biodiversity credit market: another 154 habitat banks are currently in development. Biodiversity Units UK estimates that 41,635 credits will be generated by 2030 – and another 50,010 credits will become available between 2030 and 2035.

Biodiversity Net Gain credits are sold at a minimum of £42,000 per unit, which means the market could be worth at least £3 billion by 2035.

Demand is expected to meet this supply, with habitat bank businesses predicting strong demand growth over the next 10 years. Private investment in these nature restoration projects already increased from £200 million in 2021 to £324.7 million in 2025, according to the study.

In fact, when asked how financially viable they believe habitat banks to be, operating businesses ranked viability at a 7.5 out of 10.

Farmers are positioned to benefit the most from the scheme, by getting the ability to diversify their income streams and receive payment for their nature conservation work – a missing link in the transition to a sustainable food system.