Biodiversity Credits, slow, slow, fast

We talk about Climate Change, ESG, EDI, Emissions etc, but sometimes I wonder if we are not talking enough about Biodiversity.  According to the World Economic Forum, more than half of the global gross domestic product depends on nature. 

We need to invest at least 11 trillion dollars in nature, between now and 2050, to have any hope of limiting warming to 1.5 degrees (United Nations Environment Programme (2022) ‘State of Finance for Nature 2022).

Game changes are needed, and I wonder if the UK is about to create a game changer.  It is good to see England and Wales introduce, from November 2023, requirements for developers to achieve and demonstrate Biodiversity Net Gain (BNG).  This could be a catalyst to help the recovery of nature while land is being developed.  In short, it is making sure the habitat for wildlife is in a better state than it was before development.

This will apply from November 2023 for developments in the Town and Country Planning Act 1990, unless exempt. It will apply to small sites from April 2024.

If you’re a developer

You must try to avoid loss of habitat to a piece of land you plan to do development work on. If you cannot do this, you must create habitat either on-site or off-site.

On-site means on the land your development work is on. Off-site is either your own land away from the development site, or you have bought units from a land manager.

If you cannot use on-site or off-site land, you must buy statutory Biodiversity Credits from the government. You must provide evidence for using this option. This must be a last resort. The government will invest in habitat creation elsewhere in England.

What are Biodiversity Credits?

In England and Wales, it will work like this.

The Environment Act makes provision for the Secretary of State to set up a system of statutory biodiversity credits that will be invested in habitat creation. The biodiversity credits scheme allows the UK government to sell biodiversity credits to developers if the required biodiversity net gains cannot be achieved on-site or through the off-site market. The price of biodiversity credits will be set higher than prices for equivalent biodiversity gain on the market.

What about New Zealand

Currently there are no requirements like this in New Zealand.  However, what happens overseas often washes on the shores of New Zealand.  The NZ Government is seeking feedback with consultation closing 3 November 2023.  With thousands of native species under threat or at risk of extinction in New Zealand (according to the Ministry for the Environment), I would be surprised if New Zealand does not go down the same route as England and Wales.

We all need to start thinking about this now.

The lovely looking bird is the Kakapo - the world's only flightless parrot!