7 months of BNG — what have we learned?

“The guidance from Natural England and Defra themselves, is that BNG is supposed to be iterative. You start with a high-level assessment early on in the project, and iterate as you get into the detailed design. Doing it more and making it a process you do on every project will inevitably save time and money."

 — James Thornton, Biodiversity Product Specialist, One Click LCA

Biodiversity Net Gain (BNG) is now a mandatory requirement for development projects in the UK. Since its implementation, the industry has been adapting to the complex policies surrounding BNG, understanding the new obligations for developers, landowners, and local authorities alike.

Industry progress and readiness

As the biodiversity net gain mandate rolled out, there were immediate challenges in its implementation. While some positive strides have been made, industry experts remain critical of the overall progress. Despite the legal obligation, the rate of adoption has been slower than anticipated.

In the first seven months, fewer than expected planning applications incorporating BNG have been processed and granted. This has raised questions about how prepared both developers and local authorities were for the onset of BNG. Developers are often unsure of how best to integrate BNG into their projects, while local authorities face a steep learning curve in assessing and monitoring these applications.

One of the significant barriers has been the complexity of the system itself. In many cases, external drivers like policy are pushing the adoption forward, but the internal drive from developers and local stakeholders to proactively pursue biodiversity goals is lacking.

Challenges with BNG implementation

Misunderstanding around exemptions

A critical area of confusion has been the exemptions that apply to BNG. Certain projects, such as those under permitted development rights, householder applications, or developments affecting less than 25 square meters of habitat, are exempt from BNG. However, some developers appear to be using these exemptions creatively, potentially misclassifying projects to avoid the obligations.

There is also ambiguity in the use of the self-build and custom-build exemptions, particularly in urban settings where developers argue that little to no habitat exists. Local authorities may not have the resources to thoroughly vet all claims for exemption, and the lack of consistent enforcement could allow developers to avoid BNG requirements unjustly.

To ensure fair compliance, developers must provide more detailed documentation when claiming exemptions, especially in urban areas where there is still often valuable habitat.

Who is responsible for BNG?

The division of responsibilities when it comes to BNG has also proven to be a grey area for many in the industry. In theory, developers must submit biodiversity gain plans that outline how they will ensure a net gain of at least 10% biodiversity compared to the pre-development state of the site. In practice, questions about who should lead each aspect of the process are raised.

The developer is primarily responsible for assessing the current biodiversity, calculating the impact of their development, and proposing appropriate offsets or enhancements, either on-site or off-site. Yet, local authorities play a crucial role in reviewing, approving, and ensuring the long-term monitoring of these plans.

A common concern is that local authorities may not have the staffing levels or ecological expertise to assess these applications comprehensively. The scarcity of ecologists, coupled with the rising demand for their services, adds to the difficulty. Moreover, the 30-year requirement to maintain biodiversity gains introduces further layers of responsibility, often leading to concerns about who will ensure these commitments are upheld long after the development is complete.

As pressure mounts on ecologists, it is critical that developers are equipped to complete assessments adequately without ecological expertise. Tools like One Click LCA’s Biodiversity Net Gain (BNG) tool enable stakeholders without ecological backgrounds to complete early-stage assessments and carry out optioneering in alignment with the requirements.

Are local authorities equipped?

Local authorities are facing challenges relating to the complexity and volume of BNG-related applications. Defra has estimated that each planning authority would require at least one additional full-time employee to manage the BNG workload. However, the funding to support such resources has been insufficient, leaving many authorities under-resourced and underprepared to enforce the new regulations. This underpins the need for developers to be equipped in completing their BNG assessments themselves.

The crux of the issue lies in the capacity to review and reinforce BNG provisions consistently. Without sufficient expertise, local authorities may struggle to effectively challenge developers who fail to meet the required standards or who attempt to bypass the rules through creative interpretations of exemptions.

It is evident that more comprehensive training, additional funding, and better resources are needed to empower local planning authorities to manage BNG implementation successfully.

How can developers speed up progress?

Early assessment

The key to speeding up BNG compliance lies in early and proactive engagement with biodiversity planning. Developers who approach BNG as an iterative process from the outset are more likely to streamline their application process and avoid delays. This involves early assessment of the site and consideration for how biodiversity net gain can be integrated into the design.

Early planning with local authorities

Developers should also work closely with local authorities from the pre-planning phases of their projects to ensure that they are aligned on expectations. Understanding local biodiversity priorities and factoring these into project plans can help avoid costly redesigns later.

Biodiversity tools

Tools like the One Click LCA Biodiversity Net Gain tool can aid developers by providing early-stage assessments of biodiversity impacts, allowing them to test different designs and scenarios before finalizing their proposals. By incorporating biodiversity metrics into the broader sustainability goals of a project, developers can make more informed decisions that optimize both sustainability and compliance.

Expectations for the next 6 months

Over the next six months, the BNG process is expected to accelerate as stakeholders gain more experience with the system. The initial complexity should give way to more standardized practices, and local authorities are likely to develop more templates and best practices for section 106 agreements.

There is also expected to be further guidance from the government, particularly around ambiguous areas like exemptions and offsite habitat creation. The uptake of habitat banking, where landowners create biodiversity gains to sell to developers, may increase as the costs and benefits of different approaches become clearer.

Developers will need to continue adapting, with a growing emphasis on early planning and collaboration with ecologists. As the system matures, those who adopt proactive biodiversity strategies will be ahead of the curve, both in terms of compliance and in reducing their environmental impact.

Biodiversity net gain — lessons for the future

Seven months into biodiversity net gain, the industry is adapting. Progress has been made, but significant challenges remain in terms of understanding exemptions, clarifying responsibilities, and equipping local authorities to manage the process effectively. By leveraging tools like One Click LCA Biodiversity Net Gain tool and engaging with biodiversity planning early, developers can be equipped to contribute to a more sustainable, biodiversity-rich future.