To ask the Secretary of State for Environment, Food and Rural Affairs, whether the proposed Nature Restoration Fund will (a) supersede and (b) compliment the existing biodiversity net gain obligations for new developments under the Environment Act 2021.
Answered on
8 May 2025
The Nature Restoration Fund will not supersede existing Biodiversity Net Gain (BNG) obligations for new developments.
BNG is a requirement which applies to most new development across England, aiming to leave habitats in a measurably better state than they were beforehand by delivering a 10% net gain for biodiversity. It came into effect in February 2024. The 10% net gain can be delivered through on-site habitat enhancements, off-site through the new market for biodiversity units, or by purchasing statutory biodiversity credits from the government, as a last resort.
The Nature Restoration Fund will focus on enabling development in areas where that has stalled due to specific environmental obligations relating to impacts on protected sites and species in those areas. Developers would be able to discharge these obligations, such as those related to the Habitats Regulations, through a payment into a fund, where this can both streamline development and allow for more strategic and effective measures for nature protection.
BNG and the Nature Restoration Fund are intended to be complementary policies. We will ensure that developers receive a user-friendly experience and that BNG credit and the Nature Restoration Fund revenue is deployed in a joined-up manner to maximise environmental outcomes.