Nathan Jenkinson of Environment Bank explores some of the myths around achieving biodiversity net gain offsets, and puts the case for wide usage of Habitat Banks.
Offsite biodiversity net gain (BNG) is a much misunderstood subject. The most cited issues, expense and lack of local supply, aren’t difficult to refute, but beyond that, offsite offers more options and advantages than people might think.
Through our work, we’ve established the nation’s largest network of Habitat Banks across the length and breadth of England, and in so doing, developed market leading insight into just how effective offsite BNG can be for biodiversity and developers, when used properly.
The regulatory changes that have come about since BNG was launched in February 2024 mean that with regard to balancing biodiversity outcomes and enabling prompt development consenting and delivery, it has only become more important to ensure that biodiversity requirements (in the case of BNG now termed the ‘biodiversity gain objective’) are being fulfilled in the most effective and efficient way. In most cases, this is best done offsite.
The major myths
If we examine the two most cited difficulties when looking at offsite BNG – cost and lack of local supply – they don’t hold up under scrutiny.
First, lack of local supply – it shouldn’t be surprising that it took time for good national coverage of Habitat Banks to progress, and now the number of Habitat Banks is increasing rapidly. There are currently more than a hundred Habitat Banks on the biodiversity gain sites register, and many more are still in development. Viewed as a whole, these sites are found across England, from Cornwall to Northumberland, ensuring that developers will be able to buy Biodiversity Units within a reason able distance of their building site in most cases.
Second, cost. While it’s true that Biodiversity Units don’t come cheap, the pricing depends heavily on the habitat type, and for smaller projects, fractional Biodiversity Units can be purchased from pragmatic unit providers to ensure that the purchase remains relative to the site size and BNG costs don’t become a viability issue.
Onsite vs offsite
Since February 2024, it has been mandatory for developments to demonstrate a minimum 10% net gain for biodiversity delivered by the scheme (note there are a few exempt development types).
It can be challenging to create habitats that meet BNG requirements within development sites, particularly those that are spatially constrained, or where underlying site characteristics, such as soil chemistry and hydrology, mean it will be difficult to establish habitats of benefit to biodiversity. Integrating as much BNG onsite as possible can also have unintended consequences, such as sterilising future developable land.
When we consider offsite BNG as the alternative, these potential issues are reduced. The developer can look at a selection of nearby Habitat Banks, and we’ll provide them with a market ready solution that suits their requirements, whilst staying as local to the scheme as possible.
Establishing Habitat Banks for offsite BNG isn’t simply a matter of finding parcels of land that are already primed for rewilding; in fact, thanks to the aptitude of our ecology, land, and habitat delivery professionals, we can turn various types of low-yielding farmland into rich cradles for biodiversity.
Even when a developer can’t purchase Biodiversity Units within the same local planning authority (LPA) or national character area (NCA) as their construction project, there are mechanisms in place to help look for the next best option in neighbouring LPAs.
The client relationship
The other question that offsite BNG raises is trust. With onsite BNG, developers can see how the requirement is being met because it’s happening on their doorstep. With offsite, this is all happening elsewhere, on land the developer isn’t familiar with or in control of. Most are established as a collaborative project between BNG providers and landowners, who have a vested interest in working with providers because it provides them with guaranteed revenue and helps with transitioning to more sustainable agricultural practices.
We always do everything we can to ensure our clients understand where their units are coming from and how they’re looked after, providing them with as much or as little detail as they deem necessary.
Further to that, renovating and rewilding the land increases the overall land quality, which offers long-term benefits to the wider landscape. The work we do to establish Habitat Banks has trickle down effects, including mitigating flood risk, establishing restorative grazing, promoting floral diversity that encourages pollinators (which is good for crops) and much more.
This is especially important because it demonstrates that the establishment of Habitat Banks is directly beneficial to both arable and pastoral farming. In sum, the level of investment in offsite BNG from BNG provider and landowner alike makes the biodiversity even more reliable, because constant care and attention are going into monitoring and maintaining it to the highest standards.
Such assurances carry through the entire process, from enquiry right through to delivery. Each project is different, and the scale of our operation combined with the scope of our in-house expertise means that we can fit our approach to anything from a tiny housing development project all the way to large scale infrastructure projects.
Even if the planning journey carries uncertainties, or the BNG requirements do, our sales team (themselves planning and biodiversity specialists) offer ongoing support throughout this process to make certain that the right solution is delivered. This isn’t a ‘hit and run’ service, it’s fluid and tailored from start to finish.
A survey conducted by Housebuilder & Developer in February 2025 showed that 50% of developers find achieving 10% BNG ‘somewhat difficult’, and a further 12% find it ‘very difficult’. The fact of it is that the experience doesn’t need to be difficult; services like ours are living proof of this.
Of course, none of this matters if the BNG delivery is simply too expensive in the context of a project’s budget. Some reports suggest that the low cap for Biodiversity Units is £25,000. In fact, single whole Biodiversity Units can cost less and as referenced above, we can sell fractional Biodiversity Units, down to a factor of 0.01, so even the smallest of projects can affordably meet its requirements. We only ever provide developers with exactly the amount of BNG units they need, whether that’s 25 or 0.01.
What to consider
The first consideration is ensuring that you are using the right metric and therefore have a steer on how many Biodiversity Units you require. For SMEs, the Small Sites Metric can be used for this, although advice should be sought from an ecological consultant on whether this is the best course of action, on a site by site basis. This process can seem daunting, but we are able to provide support, and with that information gathered, create a plan perfectly tailored to your needs.
We’re also on hand to ensure that you understand the roles and responsibilities associated with offsite BNG delivery. 30 years is a long time, and we want to do everything we can to give you the assurance that we’re meeting your BNG requirements through our monitoring and reporting methods.
Other considerations, such as whether an ongoing supply will be needed for future projects, the ratification of your BNG documentation and what to do if you need to reach out, will all be covered during the process of getting you set up.
Looking ahead
This is a developing market, and as demonstrated, a lot of the common issues raised around it stem from teething problems which have either already been dealt with or will be very soon.
The market is growing at a remarkable speed, and we are evolving at the same pace. Organisations like ours are also at work ensuring that the policy continues to mature in line with what customers, landowners, and the habitats themselves need the most, turning today’s barriers into tomorrow’s myths.
Nathan Jenkinson MCIEEM is strategic account director at Environment Bank