Updated government guidance on biodiversity net gain credits: key changes for developers to be aware of

On 28 November, the government issued important updates to its guidance page relating to biodiversity net gain (BNG) credits and what local planning authorities should do when working with developers who wish to buy statutory BNG credits.

In this article we highlight the key changes to the guidance on BNG credits and advise on the points that developers should be aware of. 

What are BNG credits?

The biodiversity credit scheme allows developers to purchase BNG credits in the event that mandatory BNG obligations cannot be fulfilled through either onsite or offsite BNG habitat improvement. The updated guidance reinforces the government’s stance that credits are a last resort option for fulfilling mandatory BNG obligations.

Key changes to the guidance

1. Emphasis on statutory credits as a last resort: the updated language reinforces that BNG credits should be considered only when all other BNG options are exhausted. This reinforces the requirement for developers to explore onsite or offsite habitat enhancement first.
2. Timing of credit purchases: developers are now directed to initiate the process of purchasing credits only after receiving conditional planning approval. This change aims to ensure that credit purchases are part of a well-considered planning process.
3. Discharge of pre-commencement conditions: developers are explicitly prohibited from buying credits until they can discharge the non-BNG pre-commencement conditions attached to the relevant planning permission. 

What’s next?

The government’s stricter guidance reflects its commitment to making statutory credits a last resort. Developers must demonstrate a committed effort toward securing onsite and offsite BNG before turning to statutory credits.

To access the updated guidance, please click here.

For further information on the guidance or assistance with BNG-related matters, please contact Louise Smith or David Richardson.