biodiversity net gain opportunities for farmers

Take five guide - biodiversity net gain opportunities for farmers 

Biodiversity Net Gain (BNG) initiatives are an attractive way for landowners to diversify their businesses site in the UK, but there are several key legal considerations that need to be addressed.

Our Take Five Guides throw out the jargon and provide you with concise legal advice direct from our lawyers, in five simple steps.

 

1. Legal agreements to securing BNG

The crucial requirement is that the habitat creations and enhancements are secured for a minimum of 30 years and then the land must also be registered on the Biodiversity Gain Site Register.

The two main types of agreement to secure the land as biodiversity gain site are Section 106 Agreements with the Local planning Authority (LPA), and Conservation Covenants with a responsible body designated by the Secretary of State. The obligation in these agreements “run with the land”, meaning they also bind future owners of the land.


2. What other consents do I need?

If the creation or enhancement of the BNG site involves works that constitute development, planning permission may be required. The proposed changes to the land may also require other consents under other environmental regulations.

Your project may also require consents for specialist types of work including, for example, works carried out in relation to watercourses, so ensure you are taking professional advice before entering into any agreements.

 

3. Understanding the financial and commercial implications

Payments from developers for the biodiversity units generated by the project will be subject to negotiation. Having a BNG project on your land could also impact on the value of the land so landowners need to take a wider view on what is best for their business.

Pricing needs to consider the long-term costs associated with managing and maintaining the land as a biodiversity gain site and the potential tax implications, including whether the proceeds generated are subject to income or capital gains tax, and any impact on reliefs against IHT.

 
4. Doing the due diligence

By getting a thorough ecological survey, landowners are in a better position to determine the biodiversity value of the site and what the potential number of units which it could deliver.

Landowners should also seek independent legal and financial advice to properly understand the responsibilities and the viability of such a long-term commitment before singing any agreement.


5. Stay on top of your responsibilities

As with any legal agreement, there will be mechanisms for monitoring compliance with the obligations in the legal agreement by the landowner.

Non-compliance could lead to enforcement action by the LPA or responsible body to remedy the issue and could potentially come with financial costs so ensure you are aware of what has been agreed to and ensure it is followed through.

 

Would you like to know more?

Thrings’ Planning and Environment lawyers have extensive experience in navigating complex natural capital matters including nutrient neutrality, BNG and carbon sequestration. Get in contact to find out more.

 

Thrings legal take five guides

 

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