Environmental markets

Biodiversity Net Gain (BNG) is a new approach to development that aims to leave the natural environment in a measurably better state than it was beforehand. It becomes a legal requirement at the end of 2023 and requires developers to minimise damage to the natural environment and wildlife species, restore nature lost due to the development, and deliver a minimum 10% net gain in nature.

Due to housing shortages and an increasing population, 300,000 new homes will need to be built in England each year. Despite efforts to avoid using new land, space constraints mean that about half of the new homes will be built on ‘greenfield’ sites that have not yet been developed. New housing built on farmland, at the edges of existing residential areas, will lead to a loss of natural environment and the wildlife species that live in these fields.

Working with EnTrade, Wessex Water and Wheatley Young and Partners, the team have informed the design of catchment markets for the greater Bristol area. The marketplaces will bring together landowners and credit buyers (typically housing developers) to facilitate the exchange, initially, of biodiversity net gain credits, and in due course potentially expand to carbon. The market is designed in such a way that both buyers and sellers are fairly rewarded for their contribution to the surplus, which also helps to incentivise honest bidding on both sides of the market. Housebuilders will benefit from being able to purchase verified nutrient credits and Biodiversity Net Gain (BNG) offsets. The BNG offsets will establish new habitats and these  ecosystems will also provide opportunities for leisure activities, like birdwatching, that contribute to wellbeing. More information available here.