Integrated Land Management

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BNG Trading Rules, A Guide for Developers Pt.2: Rule 4, Achieving Exceptional Ecological Outcomes

The BNG framework encourages developers to go beyond simply compensating for habitat loss. Rule 4 allows for deviation from standard trading rules in specific scenarios, enabling the creation of projects with exceptional ecological benefits.


When can Rule 4 be applied?

Rule 4 can act as a tool for unlocking significant gains. It applies when a development presents a unique opportunity for:

  • Restoring Historically Important Habitats: Imagine a site with the potential to revive a lost wetland or recreate a meadow type that was once abundant in the area. Rule 4 allows for prioritising such restorations, even if they differ from the specific habitat loss.

  • Complex Landscape-Scale Changes: Large-scale projects creating heathland mosaics or restoring natural processes in rivers can benefit from Rule 4. These complex interventions often deliver greater ecological value than simply replacing individual habitat units.

  • Optimal Conditions for Specific Habitats: If a site has exceptional conditions (soil, water, nutrients) for a specific habitat type, Rule 4 allows for prioritising its restoration, even if it differs from the lost habitat.

Utilising Rule 4 in Practice

The biodiversity metric tool offers two ways to implement Rule 4:

Deviations from Trading Rules

When a strong ecological justification exists for a habitat intervention not fully captured by the standard trading rules, deviations can be applied. Clear explanations for this approach are crucial.

Habitat Created in Advance Function

This function allows acknowledging reduced risks associated with successful habitat creation. For instance, if the project team has exceptional expertise and the site offers ideal conditions, the habitat might reach its target condition faster than average. The tool allows factoring in this reduced risk through the “habitat created in advance” function.

Things to Remember

  • Rule 4 is not a shortcut to avoid standard BNG requirements. The overall biodiversity gain objective still needs to be achieved.

  • Early engagement with Local Planning Authorities (LPAs) is vital. They need to be convinced of the exceptional ecological circumstances justifying the use of Rule 4.

  • Providing evidence for optimal site conditions, relevant ecological expertise, and the specific ecological benefits not captured by the standard metric is crucial.


By leveraging Rule 4 effectively, developers can contribute to significant ecological improvements while fulfilling BNG requirements. Contact ILM today for expert BNG Guidance! Missed Part 1? Read it here.

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