Habitat Banking – Frequently Asked Questions

What is habitat banking?

Habitat banking is an increasingly important conservation approach in the UK that allows developers to compensate for the unavoidable impacts of construction and land use on nature by funding or delivering created habitat elsewhere. Instead of simply minimising harm, this system works by ensuring that biodiversity is actively enhanced through measurable improvements.

The process operates through the creation of biodiversity net gain units (BNG units). Developers can purchase these credits to offset the ecological losses caused by their projects. Each credit represents a defined ecological value, calculated according to government-approved metrics.

How large does a habitat bank need to be?

The required size of a habitat bank depends on the scale of the development being offset and the ecological value of the impact site. Local planning authorities and statutory agencies typically assess requirements based on three factors:

1. The type of habitat affected by the development
2. The size of the area lost or degraded
3. The species and ecosystem functions supported by that habitat

In practice, this means that some projects may require relatively small habitats, while others will need large-scale schemes to provide sufficient biodiversity value. The overriding goal is to ensure that the created habitat provides adequate compensation for what has been lost, meeting both ecological and policy standards.

How does habitat banking support sustainable development?

Habitat banking allows developers to meet sustainable development goals by investing in long-term habitat management. By purchasing biodiversity units, developers can ensure that development delivers measurable ecological benefits while reducing risk for both the developer and the local planning authority.

What are biodiversity units and how are they calculated?

Biodiversity units are a standard measure used to quantify the ecological value of habitats. Using the biodiversity metric, the current ecological value of a site is assessed, and the units required to offset losses or achieve biodiversity net gain are determined.

How does the Environmental Act 2021 affect habitat banking?

The introduction of mandatory biodiversity net gain (BNG) regulations in England has made habitat banking a significant consideration. Under the Environment Act 2021, most new developments must deliver a minimum of 10% biodiversity net gain, secured for at least 30 years. For many projects, achieving this entirely on-site is not practical. This is where habitat banking provides a solution. By purchasing BNG units from an established habitat bank, developers can ensure compliance without compromising their project timelines.

What role does the local planning authority play?

The local planning authority oversees development applications and ensures that projects comply with BNG requirements. They may approve the use of biodiversity credits from habitats as part of Section 106 agreements or other legal agreements, guaranteeing that ecological improvements are delivered and maintained long term.

What is the biodiversity metric?

The statutory biodiversity metric is a tool used to calculate the number of BNG units required for a development. It considers habitat type, quality, and size to ensure biodiversity net gain targets are met. The metric is central to determining how many biodiversity credits need to be purchased in order to offset any impact the development may have.

Can habitat banking replace on-site habitat creation?

Yes. Developers can deliver biodiversity net gain by creating or enhancing habitats on-site, or by purchasing biodiversity units from off-site habitat banks. However, planning policy generally follows the mitigation hierarchy, which prioritises avoiding and minimising ecological impacts first, then delivering biodiversity gains on-site where possible.

Where this is not achievable, developers may secure off-site biodiversity units. Statutory biodiversity credits, sold by the government, are intended to be used only as a last resort when suitable on-site or off-site options are not available.

How can Collington Winter assist?

At Collington Winter, we specialise in guiding developers and landowners through every stage of the habitat banking process. Our team of experienced ecologists can provide:

• Initial desk-based assessments to establish habitat banking requirements.
• On-site ecological surveys to assess suitability and constraints.
• The design and delivery of habitat banks are tailored to specific projects.

Ongoing habitat management and monitoring secure the long-term biodiversity gains required by planning authorities and legislation.

If you’d like to learn more about how we can support your project, please get in touch with our team today by filling out the form below, emailing info@collingtonwinter.co.uk, or calling 01204 939608, and a member of our team will be in contact.