Biodiversity Net Gain: one year on

A year has passed since England’s Biodiversity Net Gain (BNG) rule came into effect, requiring many new developments to deliver at least a 10% net increase in biodiversity. This policy, designed to halt nature’s decline while enabling economic growth, has been a significant step forward. But how has it played out in practice?

The introduction of mandatory BNG has accelerated the inclusion of biodiversity considerations in development projects. The market for BNG units has expanded, with landowners and environmental organisations offering off-site solutions to meet developer demand.

The mandatory market has also

stimulated a voluntary market

. Businesses are increasingly seeking ways to incorporate biodiversity commitments into their broader sustainability goals. Companies that have already invested in carbon credits are now exploring voluntary biodiversity credits as a complementary strategy - recognising the value of healthy ecosystems in supporting long-term resilience.

One of the key decisions for developers and businesses has been whether to meet BNG requirements on-site or off-site. Each approach has unveiled its own benefits and challenges this year:

On-site BNG

involves enhancing biodiversity within the development itself. This could include measures such as green roofs, wildlife corridors or habitat restoration. While this ensures a direct positive impact on local ecosystems, it can be complex to implement, particularly in urban settings where space is limited. There is also the challenge of long-term management, as specific biodiversity enhancements must be maintained for a minimum of 30 years.

Off-site BNG

, on the other hand, allows developers to invest in nature projects elsewhere, delivering biodiversity gains in locations with potentially higher ecological potential. This model has gained traction as a flexible and scalable way to meet BNG requirements while funding large-scale conservation efforts. High-quality off-site projects provide measurable ecosystem benefits, often in collaboration with conservation organisations and landowners. However, ensuring transparency and integrity in these schemes remains essential to avoid greenwashing concerns.

Despite strong progress, the first year of BNG implementation has revealed some key challenges. According to Property Reporter, a

lack of clarity in regulations and a shortage of ecologists

to assess biodiversity baselines have created bottlenecks. Some developers have struggled with the complexity of biodiversity metric calculations, while local authorities have faced resource constraints in monitoring compliance.

The Institution of Environmental Sciences (IES) highlights that

best practices are emerging

, particularly around

standardising biodiversity assessments

and improving collaboration between developers, conservationists and regulators. However, more structured guidance and streamlined approval processes could enhance efficiency and support businesses in meeting their obligations more effectively.

Additionally, the practicalities of securing

long-term funding and management

agreements for biodiversity projects remain an issue. Many landowners and conservation groups require financial security over the 30-year period mandated by BNG rules, and ensuring robust, specialist, contractual arrangements can be challenging. Businesses and developers must

carefully vet off-site BNG providers

to ensure that projects are not only compliant but also deliver genuine ecological improvements over time.

A key lesson from the first year of BNG implementation is that early engagement and strategic planning are crucial. Businesses that proactively integrate biodiversity considerations into their development plans, rather than treating them as an afterthought, are more likely to achieve successful and cost-effective outcomes. Transparency, accountability, and clear reporting standards will be essential in maintaining confidence in the BNG system as it continues to evolve.

Habitat quality

should also be given utmost priority when it comes to choosing between on-site and off-site BNG - developers should consider where the best benefits for nature can be achieved.

As businesses become more aware of their ecological footprint, BNG is emerging as a key pillar in corporate sustainability strategies. Forward-thinking companies are not just treating BNG as a compliance exercise but as an opportunity to

demonstrate leadership in nature restoration

. 

Looking ahead, the continued success of BNG will depend on refining implementation frameworks, increasing investment in nature-based solutions, and ensuring that biodiversity gains are both meaningful and enduring. For developers, the challenge is to identify the opportunities or high-quality projects that deliver real-world impact - both for their business, people and for nature.

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BNG requirements

or queries, or ask us about our

biodiversity credits

which can be purchased voluntarily.