Businesses and NGOs urge UK government to maintain Biodiversity Net Gain scope

Businesses including Bidwells, Wates Group and Triodos Bank, as well as environmental NGOs, are urging the UK government to maintain the current scope of the Biodiversity Net Gain scheme after recent proposals to exempt small developments.

In an open letter addressed to Prime Minister Keir Starmer, the 27 organisations warn that removing small and medium-sized developments from the BNG scheme – which requires infrastructure project developers to offset biodiversity loss through nature recovery investments – would represent “a weakening of the policy”.

In its current state, the market for Biodiversity Net Gain credits, a type of biodiversity offset project developers can purchase to meet their obligations under the scheme, is expected to reach £3 billion by 2035, according to recent estimates.

“Our collective voice sends a clear message: weakening BNG would come at a high cost, setting back this fast-developing economy and more widely threatening business confidence in nature policy,” the letter says.

Biodiversity Net Gain critical for nature and development win-wins

According to The Wildlife Trusts, one of the letter’s signatories, the BNG scheme is critical to unlocking win-wins for nature and development, and should be embedded in all development plans, no matter their size. 

The group also argues that the policy is already delivering results for nature, businesses and communities, with almost 100 sites now working to create habitats and greenspaces alongside new homes and infrastructure. 

“Biodiversity Net Gain offers a real chance to align businesses and the nature-loving British public around a common goal; more nature-friendly spaces to live, work and relax in. This policy could be the cornerstone of a thriving economy, but a nature-positive future can only become a reality with the right support and direction from government,” said Joan Edwards OBE, director of policy and public affairs at The Wildlife Trusts.

80% of BNG allocation linked to small developments

In addition, the letter reminds the Prime Minister that small and medium-sized developments are a key driver of demand in the emerging nature market: to date, the majority (around 80%) of allocations from the Biodiversity Gain Site Register are to minor development, according to a consultation by the Department of Environment, Food and Rural Affairs (Defra).

Recent research from Wildlife and Countryside Link and Eftec also revealed that if developments up to and including 1 hectare are exempt from the BNG requirement, 24,220 hectares (an area equivalent to the size of nearly 35,000 football pitches) of extra developed land will not be required to deliver any mitigation for damage done to wildlife and habitats – cutting funding for nature recovery by around £250 million per year.  

“We’re standing shoulder to shoulder with industry leaders – from finance providers and developers to landowners and conservationists – to urge the government to bolster their support for BNG, putting the mechanisms in place to ensure that all developments, no matter their size, can deliver for businesses, communities and nature. Weakening BNG at this pivotal moment would be a step backwards for both growth and nature’s recovery, and a huge missed opportunity to drive this world-leading policy forwards,” added Edwards.