Sell biodiversity units as a land manager

a‘Land landownermanager’ refers to these different roles across the biodiversity net gain (BNG) guidance: 

• landowner 

• afarmer 

• estate farmer
  owner 
• habitat bank operator 

• anfacilities, property or estate owner

  manager 
• land agent 

• aland localadvisor  

• planning authority
  using land they own 
• developer using land they own  

Why you may choose to sell off-site biodiversity units  

Under mandatory BNG legislation, developers must deliver a habitatbiodiversity banknet operatorgain of 10%.   

If developers cannot achieve BNG on their own sites, they will have to make off-site gains by using off-site biodiversity units. Off-site means outside the red line boundary of the development that has planning permission requiring BNG.   

You can sell biodiversity units to developers on:  

• land you own 
• a landowner’s land with their permission 

For the purposes of BNG, biodiversity is measured in standardised biodiversity units.  

Your land will contain a facilities,number propertyof orbiodiversity estateunits, managerdepending on factors like its:   

• size   
• quality   
• location    

aIn landorder agentto sell units, you will need to follow various steps, including: 

• using the statutory biodiversity metric to prove the accurate calculation of how many units your habitats could generate 

• registering your units as a landbiodiversity advisorgain site on a national public register 

• recording on the register the allocation of the off-site gains to a developer, who will use it to achieve their BNG  

How

Selling in the BNG market is a choice for land managers. It is a potential source of revenue and could fund nature recovery work on your land.  You may, for instance, choose to generate and sell biodiversity units

You

Obligations canand options when you sell biodiversity units for off-site biodiversitygain 

Obligations 

Once units:created, off-site units must be maintained for at least 30 years. 

• The land manager is legally responsible for creating or enhancing habitat, and managing that habitat for at least 30 years to aachieve developerthe target condition. 

  The details of your obligations will depend on: 

  • which option you choose for selling your units 
  • what you agree in the legal agreement and habitat management and monitoring plan (HMMP) you make when you legally secure your units 

  Options for selling biodiversity units 

  There are 3 main ways you can sell to developments looking for off-site biodiversity units. Make an informed decision based on what is best for the land owner. 

  1. Sell biodiversity units independently 

  You’ll need to take full responsibility for following all the steps in partnershipthis guidance. 

  2.  Work with yourone or more partners  

  You can team up with a local authoritynon-governmental organisation (NGO) or other land managers. Depending on how many people you work with, you may be able to create large habitat banks. You would then sell biodiversity units as a group. As a group, you still need to follow all the steps in this guidance. 

  If you choose this option, you need to make sure you work out: 

  • who is responsible for which activities 
  • how you’ll share payments 

  through3. Use a habitat bank operator 

  A habitat bank operator leases your land and pays you a fixed fee on a regular basis, for example, monthly or yearly. Typically, the operator will try to find you a buyer and sell to them; legally secure your land; register your gain site and record its allocation, so you would not need to follow these steps yourself.

  Either the operator or the land manager may do the habitat creation, enhancement and management, as well as any reporting. You will need to agree all the details of who does what in your contract with the operator. 

  Make sure you check the contract with the operator to find out: 

  • who is responsible for which activities 

  • throughwhen aand broker

    how you’ll receive payment 
  • what will happen if the habitat doesn’t reach the target habitat condition 

  • onwhat awill tradinghappen platform

    if no units are sold within the period of the legal agreement 
  • what will happen if the habitat bank operator ceases trading 

  You can alsosearch goonline intoto partnershipfind habitat bank operators. Farmers’ organisations and publications may advertise them. 

  Combining BNG with other landenvironmental managerspayments 

  If toyou’re increasealready thereceiving areapayment youfor havecreating foror sale.enhancing Thishabitat, couldconsider behow foryou biggercan projects.combine BNG with other environmental payments.  

  When you cannot sell biodiversity units 

  You cannot sell biodiversity units or combine them with other environmental payments when you’re already required to create or enhance habitat for:for: 

  • restocking treestrees 
  • marine licensinglicensing 
  • remediation under the environmental damage regulations 

  Protected

  Selling sites

  biodiversity units on protected sites 

  You may be able to enhance a protected site and sell the units for BNG.BNG. You must must get consent from Natural England before before you start work.work and renew consent as required. 

  You must ensure that any protected species licences required are in place before works commence. 

  Non-intertidal protected sites 

  You can enhance features that are not specified as one of the designated features of the protected site. You must not harm a designated feature.  

  Intertidal protected sites

  sites 

  You can enhance any intertidal habitat on a protected site, including designatedthe features,features iffor therewhich the site is nodesignated, appropriateprovided alternativethis habitat.is acceptable to the consenting organisation. 

  Non-intertidal

  How protectedto sites

  sell biodiversity units  

  This is an example order of steps, but the order of some steps is flexible.  

  You can enhanceregister your gain site: 

  • before recording the allocation of units to a featuredeveloper, thator 
  • at hasthe notsame beentime designated.you record the allocation 

  You mustcan notregister harmyour again designatedsite feature.and allocate units to a developer: 

  Get

  • before you sell your units  
  • at the same time as you sell your units  
  • after you sell your units 

  The 30-year BNG commitment starts from the completion of habitat enhancement works, as defined in your legal agreement. 

  You can begin habitat creation, enhancement and management on a gain site ready

  before allocating off-site units on it. This is called habitat banking. Or you can allocate the units and then begin the habitat work as soon as possible. 

  You can sell different units on one gain site to different developers. You would need to follow the steps in this guidance for each allocation of units to a developer. 

  1. Find out whathow many units you could sell and the habitat types you could create 

  You will need to consult a qualified ecologist who will do a survey and measure how many units you have on your existing habitat. There is guidance on how to do this, using the statutory biodiversity metric. Seek advice from relevant professionals (for example ecologists or land advisors) on your options to enhance the value of the habitats on your localsite, areaand needs.to understand how many units you could sell. 

  ToYou will get anmore ideaunits ofper whathectare habitatif you couldcreate, createenhance or enhance,restore checka whichparticular habitat that is strategic for your location. Your local nature recovery strategy (LNRS)will areamap yourstrategic landhabitats isfor in.your Ifarea. anWhere LNRSthis is not publishedyet forpublished, you can use the draft strategy, or another strategy your land,LPA askrecommends.  You can find your local planning authority (LPA). 

  You forcan aconsider: 

  • creating draftand version,enhancing orhabitats forto meet the strategyBNG theyrequirements of a specific development, or 
  • creating and enhancing habitats that are applyingappropriate to your site conditions and locally in thedemand, areabefore untilmatching thewith LNRSa isdevelopment 

  2. published.

  Price your units 

  2.To Considerset howa price for your units, you canshould combinethink biodiversityabout netthe gaincost withof, for example: 

  • initial creation and enhancement of habitats 
  • management of the land covering at least 30 years 
  • monitoring and reporting 
  • ecologist or other environmentalexpert’s payments.costs 
  • insurance 

  • remedial work to correct any habitat management failures 

  • machinery, tools and other staff to carry out the tasks 
  • inflation   
  • consulting experts to review your legal agreement 

  YouIt canis combineimportant biodiversityto unitsensure andthat nutrientyour credits.pricing covers all of these costs over a minimum of 30 years to meet the obligations in your BNG legal agreement. You may be able to sellfind thembiodiversity alongsideunit otherpricing environmentalinformation payments.

  3.in Youonline willmarketplaces, needor tothrough calculateyour howlocal manyauthority biodiversityand unitsland youagents. Be mindful that different locations and types of projects will have pricing variations, and your prices should be based on your site.own costs to deliver the units.  

  You should useprice aunits qualifiedbased ecologiston tothe docosts this.incurred Theywhen willdoing dothe thishabitat calculationenhancement usingand not the biodiversitynumber metric.

  Youof units habitats will needgenerate. toA recalculatehabitat yourenhancement biodiversitymay unitsbe ifworth habitatmore wasunits createdto orone enhanceddeveloper onthan youranother. The land beforemanager’s 30price Januaryfor 2020.the Youwork canis dofixed, thisbut usingthe price per unit will go up or down depending on distance to the biodiversitydevelopment metric.site.  

  YouDefra canand createNatural England do not set off-site biodiversity unitsunit beforeprices. youStatutory sellbiodiversity them.credit Thisprices isare habitatnot banking.guideline prices for biodiversity units sold in the off-site private market. 

  4.

  3. Secure the landunits bywith a legal agreement

  agreement 

  You’llBefore needyou tocan commitregister toyour managinggain thesite, habitatyou formust athave leasta 30legal years.

  You’llagreement. needThis could be a planning obligation (sectionor, 106)if withyou anare LPAa orland owner, you can alternatively have a conservation covenantcovenant. The legal agreement must secure habitat enhancement and maintenance for at least 30 years. You make legal agreements with ayour local planning authority or another responsible body. They detail the habitat works you are committing to and the outcomes to be achieved.  

  You’ll also need to agreeprepare on a habitat management and monitoring plan (HMMP)(HMMP) withand youragree this with your LPA or or responsible body.body.  

  5.

  4. PriceFind a buyer for your units

  Tounits, comeif upyou withdo anot pricehave forone youralready 

  To units,explore youthe shouldprivate thinkmarket, aboutyou including:could: 

  • managementsearch ofonline thefor marketplaces 

  • consult a land coveringagent, atbroker leastor 30another years
    consultant 
  • speak with developers you already have links with  

  • monitoringspeak with your LPA, who may be able to signpost you to buyers in the market and reporting

    in some cases may act as informal brokers 

  • ecologistspeak orwith otherhabitat experts’bank costs

    operators who would try to organise a sale for you 

• insuranceOff-site BNG is a private market and there is no guarantee you will find a buyer.