Since February 2024, Biodiversity Net Gain (BNG) has been a mandatory requirement for most planning applications, with a few exceptions. While National Significant Infrastructure Projects (NSIPs) are currently one of the limited exceptions the new Labour Government has recently confirmed the intention that BNG will apply to NSIP projects from November 2025. We spoke with Senior Associate and natural capital expert, Tom Beeley, to delve into the policy and its implications for those planning NSIPs in the near future.
BNG was introduced to combat the UK’s declining biodiversity levels, with recent reports highlighting the UK as one of the most nature-depleted countries in the world. This policy aims to help reverse this decline, recognising the important role that biodiversity and natural capital play in supporting the UK economy.
The policy ensures that new development not only mitigate habitat loss, often an unavoidable consequence of development, but will result in a net increase in habitat provision. Developers must demonstrate a minimum of 10% biodiversity net gain with any project before planning permission is granted. Some local authorities may even require more than the central government’s minimum.
Developers can achieve net gain through the planning process by:
- Enhancing or creating habitat within the development boundary;
- Enhancing habitat offsite on their own or third-party land, or purchasing offsetting units;
- Purchasing statutory credits from the government where other options are unavailable.
The legislation emphasises a mitigation hierarchy, expecting developers to prioritise onsite provision before considering offsetting. Statutory credits are a last resort being only accessible where no alternative is available and due to their high cost.
A key aspect of BNG policy is that significant onsite or offsite net gains must be legally secured against the land and maintained and monitored for at least 30 years, far exceeding typical planning requirements.
Meeting BNG requirements even for small sites is often complex. requiring a multidisciplinary approach and adding time and cost to the development process. Failure to properly understand and plan for BNG can lead to delays in the planning and development process as well as additional expenses.
With this in mind, it is vital that the pipeline industry and wider infrastructure sector is prepared for BNG applying to NSIPs from November 2025. NSIPs, by their nature, are already hugely complex, and BNG adds another layer of complexity to navigate. Failure to properly assess BNG requirements and how and where offsetting needs might be met at the early stages of the project have potential to add to significant cost and complexity with potential to add project delays.
Developers must carefully consider the impact of route selection on BNG requirements identifying the type, distinctiveness and condition of habitats that will be impacted by development and consider how any losses might be most effectively mitigated. Onsite provision might be preferable in terms of the mitigation hierarchy, but project managers will need consider the wider context of land requirements and long-term management implications beyond the initial project development horizon.
While Governments latest CPO guidance indicates that CPO powers will likely be available for acquisition of BNG land for NSIP projects, developers will need to consider the appropriateness of compulsory acquisition of land in the context of a wider market for offset provision as well as the long-term management implications involved in delivering habitat.
It is crucial that any company looking to lead on an NSIP considers its BNG requirements at an early stage and engage with experts to understand the ecology impacts as well as the wider planning and land implications.
We have been advising both landowners and developers around the intricacies of BNG even before the policy came into effect, including the submission of planning applications, setting aside land for habitat creation, managing offset creation projects, or selling land used for BNG purposes. We have a deep knowledge of NSIPs and helping clients secure that all-important DCO, so we are best placed to support the pipeline industry navigate through their upcoming BNG requirements should their plans be submitted after the November 2025 deadline.
