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HomeEnvironmentExperts Say Biodiversity Law Could Double Effectiveness of Builder Compensation for Nature...

Experts Say Biodiversity Law Could Double Effectiveness of Builder Compensation for Nature Loss

Recent regulations mandate that all new construction and road development in England must consider and mitigate their effects on the natural environment. While these rules are commendable in theory, experts in environmental economics point out significant shortcomings in their execution. A recent study critiques the Biodiversity Net Gain policy, which requires most of the mitigation efforts to take place within or nearby the project sites instead of in areas where they would be more beneficial for wildlife. By directing conservation measures to locations that are optimal for biodiversity, it was identified that the overall benefits could potentially be doubled.

Experts in environmental economics argue that while the principles behind initiatives aimed at addressing and mitigating their impact on the environment are sound, their practical application is often inadequate.

This year saw the introduction of Biodiversity Net Gain (BNG) legislation, which mandates that any new construction or infrastructure projects must result in at least a 10% enhancement of biodiversity or habitat.

A recent study featured in One Earth critiques how this policy is being enacted. It highlights that most offsetting efforts are required to take place within or close to the development sites themselves, rather than being directed to areas where they could have a greater positive impact on biodiversity.

The focus on placing offsets in locations that would be most beneficial for biodiversity was overlooked.

Local offsetting, a method endorsed by the National Planning Policy Framework, is criticized by researchers from the University of Exeter’s Land, Environment, Economics and Policy (LEEP) Institute for treating the natural environment as uniform. Their analysis indicates that by including both ecological and economic data in offset strategies, significant enhancements can be made for wildlife conservation while also benefiting communities in regions lacking adequate natural resources. The researchers utilized biodiversity models and assessments of nature’s services to support their findings.

Key elements considered include the variety of wildlife present, the advantages to people from spending time in natural environments, and the expenses related to compensating farmers and landowners for changes in land use.

The researchers utilized these models to evaluate housing developments throughout England over a span of 25 years. They explored five different scenarios: maintaining the current situation (focusing on local offsetting); maximizing conservation benefits (achieving the greatest gains for priority species); minimizing costs (reducing compensation for landowners); maximizing the ratio of recreational benefits compared to costs; and optimizing recreational opportunities.

Research indicates that the advantages of national benefits are more significant for those with lower incomes.

The findings revealed that when offsets are positioned in areas that significantly enhance biodiversity, the conservation benefits can be twice as effective compared to the current practice of localized offsetting.

The existing approach to Biodiversity Net Gain (BNG) has shown poor performance across all evaluated criteria, with alternative scenarios exceeding it on various measures.

If the regulations were modified, it would dramatically alter where offsetting occurs, shifting away from development sites and high-value farmland found in eastern regions of the country.

Professor Ian Bateman OBE, Director of the LEEP Institute

Dr. John Smith from the University of Exeter Business School remarked, “The Biodiversity Net Gain initiative could be crucial in addressing biodiversity decline; however, its current implementation is significantly undermining this goal. Focusing BNG efforts on areas lacking biodiversity will have minimal impact on protecting our threatened wildlife.”

Dr. Mattia Mancini, an Environmental Economics lecturer at the same institution, further noted that “if our aim is to provide marginalized communities with access to quality environments, then placing BNG offsets close to luxury homes will not solve the issues of inequality.”