Biodiversity Net Gain is becoming increasingly important for developers to deliver successfully. But navigating the specific rules around habitat trading can be confusing. This article aims to simplify the process, focusing on the BNG Trading Rules outlined in the Statutory Metric Guidance.

What are BNG Trading Rules?

BNG trading rules act as a set of guidelines to ensure “no net loss” of biodiversity during development projects. They dictate how developers can compensate for the loss of existing habitats by creating or enhancing new ones. These new habitats should ideally be of the same type or offer greater ecological value.

Key Points of BNG Trading Rules

Trading Up or Like for Like: The rules prioritise replacing lost habitats with similar ones (same type and distinctiveness). For example, a loss of high distinctiveness woodland should be compensated for by creating a new high distinctiveness woodland.

Habitat Distinctiveness Matters: The distinctiveness of a habitat plays a crucial role. Very High Distinctiveness Habitats (VHDH) are irreplaceable, so developers should prioritise avoiding impacts on these areas altogether.

Trading Options Based on Habitat Type: The trading rules differ depending on the habitat type being lost. For instance, lost hedgerows can be compensated for with similar hedgerows or upgraded to a higher band.

Watercourse Compensation: When compensating for list watercourses, the new section should have similar features and functions. Replacing a headwater stream with a lowland river wouldn’t be acceptable, for example.

Woodland Creation Considerations: Creating woodland for BNG shouldn’t come at the expense of existing woodlands. While woodland creation is encouraged, enhancement of existing woodlands can also be used for compensation. For felled woodlands, specific rules apply regarding the baseline habitat and target condition.

What if Standard Rules Don’t Apply?

In exceptional circumstances, developers can apply “Rule 4”. This allows for deviations from standard trading rules if the project involves:

• Restoring a historically important habitat with optimal conditions

• Highly complex landscape changes like creating heathland mosaics

• Large-scale river restoration projects

The Importance of Expert Guidance

While this article provides a simplified overview, navigating BNG and its intricacies can be complex. For successful implementation of BNG trading rules, seeking guidance from qualified ecologists is highly recommended.

Head to Part 2 where we delve deeper into specific aspects of BNG, like the role of the biodiversity metric tool and achieving exceptional ecological outcomes through Rule 4. Read it here.