Introduction
With the arrival of mandatory Biodiversity Net Gain (BNG), your land isn’t just for agriculture or forestry anymore—it’s a potential source of new, long-term revenue. By creating and selling BNG units, you can get paid for enhancing nature on your property.
But how do you get started? The journey from a field to a registered BNG credit can seem complex. This guide breaks down the essential steps you need to follow, focusing on the two legal routes: the Conservation Covenant and the Section 106 Agreement.
The Two Pathways: Conservation Covenant vs. Section 106
Before you start, it’s crucial to understand the two main legal frameworks that will secure your BNG commitment for at least 30 years.
- Conservation Covenant: A private, legally binding agreement between you (the landowner) and a designated “responsible body” (like a wildlife trust). This is the most common route for landowners selling credits on the open market.
- Section 106 Agreement: A planning obligation between you and the local planning authority (LPA). This is typically used when a specific developer needs units for their project and is contracting you directly.
The steps for both are similar, but the final legal agreement differs.
The Step-by-Step Process for Landowners
Step 1: Initial Feasibility and Land Assessment
Goal: Determine if your land is suitable and potentially profitable.
- Self-Screening: Is your land in a location that could be enhanced for wildlife? Is it free from designations that might conflict? Are you willing to commit to a 30+ year management plan?
- Professional Consultation: Engage an ecologist or a BNG advisor. They can provide a preliminary view on the potential for creating or enhancing habitats on your land. They will also advise on which route (Covenant or S106) might be best for your goals.
Step 2: The Baseline Biodiversity Assessment
Goal: Officially measure the current biodiversity value of your land.
- Hire an Accredited Ecologist: This is not a DIY step. You must use a qualified ecologist who is licensed to use the Statutory Biodiversity Metric.
- The Metric Calculation: The ecologist will survey your land, map the habitats, and input the data into the metric tool. This generates a baseline score in biodiversity units.
- This is your “before” picture. The number of units you can eventually sell depends on the improvement from this baseline.
Step 3: Designing the BNG Management Plan
Goal: Create a legally-binding plan for how you will achieve and maintain a 10% net gain.
- Habitat Creation & Enhancement: Your ecologist will design a plan to create new habitats (e.g., turning arable land into wildflower meadow) or enhance existing ones (e.g., improving woodland management).
- The “After” Picture: The ecologist will calculate the projected biodiversity units after the management plan is fully implemented.
- Long-Term Management: The plan will detail specific, measurable actions like grazing regimes, planting schedules, and invasive species control for the next 30 years.
Step 4: Navigating the Legal Agreement
This is the stage where the two pathways diverge.
Route A: The Conservation Covenant (For the Open Market)
- Identify a Responsible Body: You must approach an organization like a wildlife trust or other government-designated body to act as the counterparty to the covenant.
- Negotiate Terms: The covenant will legally bind you and all future owners to the management plan. You will negotiate the terms, including the monitoring and reporting requirements, and the fees payable to the responsible body for their oversight role.
- Registration: Once signed, the Conservation Covenant is registered as a local land charge. This means it “runs with the land,” securing the obligations for the full term, regardless of who owns it.
Route B: The Section 106 Agreement (With a Local Planning Authority)
- Engage with the LPA: The process is driven by the developer’s planning application. The LPA will be a key party in the agreement.
- Tri-Partite Agreement: The Section 106 is typically a three-way agreement between you (the land manager), the developer (the buyer), and the local planning authority.
- Planning Obligation: The agreement becomes a planning condition for the developer’s project, legally ensuring the off-site BNG is delivered on your land.
Step 5: Getting onto the BNG Register
Goal: Make your credits official and saleable.
- Submit Your Application: You (or your advisor) will apply to the government’s official BNG Register. You’ll need to provide:
- The details of the legal agreement (Conservation Covenant or S106).
- The biodiversity gain plan.
- The details of the land and the allocated biodiversity units.
- Receive a Unique Reference: Once approved, your land and its available units are listed on the public register. This provides the transparency and legal certainty that buyers (developers) need to purchase your credits.
Step 6: Selling and Monitoring
Goal: Monetize your investment and ensure long-term compliance.
- Sell Your Credits: You can now sell your registered BNG units. This can be done directly, through a broker, or on a BNG marketplace.
- Upfront & Long-Term Funding: The sale price should cover the initial habitat creation costs and fund the 30+ years of management and monitoring required.
- Annual Reporting: You are legally required to submit monitoring reports to the responsible body (if a Covenant) or the LPA (if a S106) to demonstrate you are adhering to the management plan.
Key Considerations Before You Begin
- Time: The entire process from initial assessment to registration can take 6-12 months or more.
- Cost: You will have upfront costs for ecologists, legal fees, and the responsible body/LPA. Ensure your credit sales will provide a good return on investment.
- Tax Implications: Income from BNG may have inheritance tax, capital gains, or income tax consequences. Consult a specialist rural surveyor or accountant.
Conclusion
Registering your land for BNG is a significant commitment, but it’s a powerful way to generate a new, sustainable income stream while leaving a positive environmental legacy. By understanding the steps and the difference between a Conservation Covenant and a Section 106 agreement, you can make an informed decision and navigate the process with confidence.