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Updated Feb 12, 2024

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Regulations on Biodiversity Net Gain enters into force

On 12 February 2024 the Biodiversity Gain Regulations came into force.

These Regulations establish the system for Biodiversity Net Gain (BNG), which is a form of creating and improving natural habitats. It ensures development has a measurably positive impact (‘net gain’) on biodiversity. All major housing developments are required to deliver at least a 10% benefit for nature with England becoming the first country in the world to make Biodiversity Net Gain a legal requirement.

We've set out some information below to explain the legislation.

Background

In England, the Environment Act 2021 amended the Town and Country Planning Act 1990 so that BNG became mandatory. It made provision for grants of planning permission to be subject to a condition to secure that the biodiversity gain objective is met. This will help deliver the government’s commitment to halt species decline by 2030. It means developers in England are now legally required to deliver at least a 10% increase in biodiversity when building projects are undertaken. As such, a development will result in more or better quality natural habitat after the development that was in existence before development. Schedule 7A of the Town and Country Planning Act 1990 sets out the legal framework for net gain.

In particular this will apply to those who are a developer of: 

  • major developments from 12 February 2024;
  • small sites from April 2024;
  • nationally significant infrastructure projects from late November 2025.

A developer can achieve 10% BNG by: 

  • enhancing and restoring biodiversity on-site;
  • delivering through a mixture of on-site and off-site solutions, if they can only achieve part of their BNG on-site;
  • buying statutory biodiversity credits from the government if they cannot achieve on-site or off-site BNG.

In order to provide more detail on how the net gain system works, the following statutory instruments have been published:

  • Biodiversity Gain Site Register Regulations SI 2024/45;
  • Biodiversity Gain Requirements (Exemptions) Regulations SI 2024/47;
  • Biodiversity Gain Requirements (Irreplaceable Habitat) Regulations SI 2024/48;
  • Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations SI 2024/49;
  • Biodiversity Gain (Town and Country Planning) (Modifications and Amendments) (England) Regulations SI 2024/50;
  • Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations SI 2024/46.

The sections below contain more information on this legislation.

Biodiversity Gain Site Register

Under the Biodiversity Gain Site Register Regulations SI 2024/45 land in England is to be registered and appropriately recorded under the biodiversity gain site register. This can be done based on either a conservation covenant or a section 106 agreement, based on the land's eligibility. 

Under a section 106 agreement, applications can be only be made by individuals obligated under a planning agreement to carry out habitat enforcement works on the land or maintain habitat enhancement achieved through required works. 

Applications for registration related to a conservation covenant can only be made by individuals:

  • obligated to carry out habitat enhancement works on the land;
  • obligated to maintain habitat enhancement achieved through required works; or
  • individuals with enforceable obligations mentioned above.

There are certain conditions that must be met for:

  • land to be eligible for registration in the biodiversity gain site register;
  • recording of certain information in the register;
  • the amendment of information in the register; and
  • the removal of land from the register.

If a habitat enhancement to a development is not recorded in the biodiversity gain register, as long as the projected details of the habitat entry already include the allocated enhancement information, an individual can apply to record the allocation. This must be made by someone obligated under a conservation convenant or a section 106 agreement to carry out or maintain the enhancement works. 

If recorded information in the register is incomplete, inaccurate or needs to be removed, an application can be made to amend this. 

If an amendment of an entry in the register takes place without an application and notice of intent, there are certain provisions that apply where:

  • land is registered in an entry in the biodiversity gain site register in relation to a particular conservation covenant or section 106 agreement; and
  • Natural England considers that the information in the entry is inaccurate or incomplete;

In these cases, Natural England can amend the entry to ensure accuracy and completeness of the information. 

Where land is registered in an entry to the register in relation to a conservation convenant or section 106 agreement and no allocation of any habitat enhancement to a development is recorded in the entry, an application to have an entry removed from the register can take place. 

Biodiversity Gain Requirements (Exemptions)

Certain developments are exempt from meeting the biodiversity gain requirement under the Biodiversity Gain Requirements (Exemptions) Regulations SI 2024/47 which would otherwise be a condition to grant planning permission.

They provide for temporary exemptions for small developments where:

  • the application for planning permission for small development was made before 2 April 2024; or
  • planning permission is granted for small development which has effect before 2 April 2024.

Additionally, those Regulations make exemptions where the biodiversity gain planning condition does not apply in relation to planning permission for development where the development:

  • does not impact an onsite priority habitat; or
  • impacts less than 25 m2 of onsite habitat that has a biodiversity value greater than zero and impacts less than five metres in length of onsite linear habitat.

The biodiversity gain planning requirements do not apply in relation to developments forming any part or are ancillary to the high-speed railway transport network.

Where planning permission for a development was solely granted to fulfil a biodiversity gain condition in relation to another development, these works are exempted from biodiversity gain requirements.

Lastly, the biodiversity gain planning condition does not apply in relation to planning permission for a development which:

  • consists of no more than nine dwellings;
  • is carried out on a site which is no larger than 0.5 hectares; and
  • consists of dwellings that are self-build or custom-built.

Biodiversity Gain Requirements (Irreplaceable Habitat)

The Biodiversity Gain Requirements (Irreplaceable Habitat) Regulations SI 2024/48 define “irreplaceable habitat” in relation to Schedule 7A to the Town and Country Planning Act 1990 and modify its application in respect of habitats falling within the definition.

The requirement that applies to developments for which planning permission is granted (in order to increase the biodiversity value of the development by a specific percentage) is disapplied and other arrangements must be made in order to minimise the effect of the development on the biodiversity of the onsite habitat where that habitat is irreplaceable. 

The habitats that are considered irreplaceable for biodiversity gain purposes are listed in the Schedule to the Regulations, and include habitats, such as:

  • blanket bog;
  • lowland fens;
  • limestone pavements;
  • coastal sand dunes;
  • ancient woodland;
  • ancient trees and veteran trees;
  • spartina saltmarsh swards; and
  • mediterranean saltmarsh scrub.

Biodiversity Gain (Town and Country Planning) (Consequential Amendments)

Changes are made to the Town and Country Planning Act 1990 via the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations SI 2024/49 in relation to biodiversity gain.

The amendments involve:

  • setting out rules for determining the relevant local planning authority;
  • provisions where if the conditions do not change the effect of the development on onsite habitat which is irreplaceable habitat, a biodiversity gain plan which was previously approved is regarded as approved for the purpose of the permission granted;
  • changing the route to challenge a decision of the Secretary of State on whether to approve a biodiversity gain plan will be to the High Court; and
  • inserting a definition of a biodiversity gain plan.

Biodiversity Gain (Town and Country Planning) (Modifications and Amendments) 

The Biodiversity Gain (Town and Country Planning) (Modifications and Amendments) (England) Regulations SI 2024/50 make changes to the Town and Country Planning (Section 62A Applications) (Procedure and Consequential Amendments) Order SI 2013/2140 as well as the Town and Country Planning (Development Management Procedure) (England) Order SI 2015/595.

They also make non-textual modifications to Schedule 7A to the Town and Country Planning Act 1990 for the purposes of:

  • granting outline planning permission where development is to proceed in phases;
  • granting of any kind of planning permission, where the grant is subject to conditions;
  • modifying the condition attached to planning permission relating to biodiversity gain so that biodiversity gain plans are required before development begins;
  • modifying the meaning of the biodiversity gain plan to cover biodiversity gain plans which are required for the overall development and for each phase of development, and to set out the matters to be specified in those plans; and
  • modifying the provision for approval of such plans.

Biodiversity Gain Site Register (Financial Penalties and Fees) 

Finally, under the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations SI 2024/46, if false or misleading information is supplied relating to an application made to the biodiversity gain register, a financial penalty of £5000 can be imposed. 

The various fees applicable to different applications are set out in the Schedule to those Regulations.

Relevant guidance

Useful guidance that will be useful when understanding BNG includes:

For more information on this subject, see:


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