BNG Knowledge Hub
We’ve gathered answers to frequently asked questions about BNG. If your question isn’t listed below, or if you’d like guidance navigating the BNG marketplace, please reach out to us directly!
01 About Natural Capital Partners
What is Natural Capital?
Natural capital is the value of your land’s habitats, species, and water resources. It can be valued through BNG habitat units.
Who do you work with?
Our expertise and experience enable us to help developers and landowners of all types.
What services do you provide?
From BNG to accessing the full range of natural capital credit markets and funding schemes, our all-encompassing team of experts has you covered.
02 General BNG FAQs
What is BNG?
BNG is a legal requirement under the Environment Act 2021. It means that all new developments in England must leave biodiversity in a measurably better state—at least 10% better—than before development. This uplift must be maintained for at least 30 years.
What are BNG units?
BNG units are a measurable way of capturing the gains in biodiversity from habitat improvements.
What is a habitat bank?
A habitat bank is an area of land where new habitats, such as meadows, woodlands, hedgerows, and ponds, are created and managed long term to generate biodiversity gains. These gains are quantified into BNG units for sale to developers. These sites are created in advance of developer demand, with units then being sold to developers as required.
How are BNG units secured and guaranteed?
Through either a section 106 planning obligation with the local planning authority or a conservation covenant with a recognised responsible body. Both agreements legally commit to 30 years of habitat delivery and monitoring.
Who qualifies as a Responsible Body under a Conservation Covenant?
Responsible bodies are authorised organisations or entities, including public authorities, charities, local government, or private‑sector organisations, responsible for managing conservation covenants. Their duties involve covenant registration, annual reporting, allocation of resources, ensuring legal compliance, and stakeholder engagement to preserve and enhance natural or heritage aspects of land for public benefit.
How does the overall BNG process work?
BNG involves creating and sustaining biodiverse habitats for a minimum of 30 years to compensate for ecological losses from development. The process includes detailed ecological assessments, preparation of habitat management and monitoring plans, use of DEFRA‑approved metrics, and long‑term habitat management.
How does BNG benefit the environment?
By selling BNG units landowners help provide habitats for wildlife, preserve cultural and historic features, and create spaces for education and recreation.
What is a bespoke BNG site?
An area of land where new habitats, such as meadows, woodlands, hedgerows, and ponds, are created and managed long term to generate biodiversity gains. These gains are quantified into BNG units for sale to developers. These sites are created to match existing developer demand, with units being reserved by developers up front.
03 Landowner BNG FAQs
What monitoring and reporting obligations apply during the 30‑year BNG commitment?
Landowners are responsible for ongoing biodiversity monitoring throughout the 30‑year term. However, Natural Capital Partners provides full support, including professional ecological services to manage all necessary reporting and submissions to local planning authorities or responsible bodies, significantly reducing your administrative burden.
How soon can I expect to receive income from BNG units?
Typically, income from BNG can start flowing within 6–9 months after the initial agreement and registration. Engaging Natural Capital Partners early allows for proactive baseline surveys, planning, and preparation, accelerating your return on investment.
May I reinvest BNG income into land maintenance and improvements?
Absolutely. These funds can be reinvested directly into your land, covering ongoing maintenance costs, repairs, staffing needs, or heritage restoration projects. The Natural Capital Partners team can expertly guide you in optimising other environmental income streams on top of BNG to future‑proof your lands finances.
What tax implications should I consider when entering a BNG agreement?
BNG arrangements may impact Inheritance Tax, Capital Gains Tax, and Income Tax liabilities. Natural Capital Partners recommends early consultation with our in-house tax specialist to maximise your financial and tax position.
What is a Conservation Covenant, and how does it safeguard my land?
A Conservation Covenant is a legally binding agreement between a landowner and an approved Responsible Body. It specifies what each party must do—or avoid—to protect and enhance the land for the public good, guaranteeing long‑term conservation benefits.
Are there minimum or maximum size requirements?
While our preference is for land parcels in England over 25 acres (10 hectares), we may consider smaller sites or those outside England in future phases of our habitat creation programme. So, please still register your BNG interest using our form.
Is my land suitable for BNG?
Ideal sites for BNG are often those with limited ecological or agricultural productivity, including intensively farmed grasslands, wetlands, meadows, or land that is underutilised or geographically isolated. Natural Capital Partners employs specialised expertise, comprehensive data analysis, and proprietary software to thoroughly evaluate and confirm the suitability of your land for BNG.
How do landowners participate in the BNG marketplace, and what benefits can they realise?
Landowners can generate income by creating or enhancing habitats and selling BNG units to developers. These can be tailored to individual developments or set up as habitat banks to meet future demand. All habitats must be maintained under a legal agreement for a minimum of 30 years, which includes periodic monitoring and reporting obligations.
How is biodiversity gain quantified and turned into income?
The Statutory Biodiversity Metric, a DEFRA‑approved tool, is used to quantify biodiversity improvements. BNG generated on your land can be marketed and sold to developers seeking off‑site BNG units. Natural Capital Partners provides a full-suite of experts to accurately assess, calculate, and maximise your BNG yield and subsequent income.
Can tenant farmers sell BNG, and under what conditions?
Yes, as a tenant farmer, you can sell BNG, provided you have the agreement of the primary landowner. Similarly, landowners must secure tenant consent before undertaking BNG projects.
Can existing activities such as livestock grazing, hobby farming, or golfing continue on a BNG site?
a. Farms Yes—strategically managed livestock grazing can positively support habitat creation and maintenance. By choosing suitable livestock breeds and grazing schedules, biodiversity can thrive. We’ll guide you in developing the most effective grazing strategy tailored to your farming methods.
b. Estates Yes, often hobby farming activities such as grazing or hay‑cutting remain compatible with BNG. Our team at Natural Capital Partners develop tailored Habitat Management and Monitoring Plans ensuring your agricultural activities align with biodiversity goals, maximising both ecological and economic outcomes.
c. Golf CoursesYes, absolutely! We only create BNG units off‑course so there is absolutely no impact on the playing areas of the course.
Can BNG be combined or ‘stacked’ with other environmental schemes such as carbon or nutrient initiatives?
Yes, BNG integrates effectively with other environmental strategies like Nutrient Neutrality schemes and Carbon Credits. Our team at Natural Capital Partners provide expert guidance to ensure seamless compatibility, enhancing overall estate sustainability and revenue potential.
What are the typical timeline and cost considerations for establishing a BNG project?
The duration and cost vary according to your land size and the scope of the development project. Natural Capital Partners can create a tailored proposal detailing expected timelines and expenses to help you navigate this clearly.
Do Natural Capital Partners offer ongoing ecological and management support for BNG projects?
Yes, we work with our partners to offer implementation, ongoing management and monitoring.
04 Developer BNG FAQs
What must developers deliver to satisfy BNG requirements, and how can off‑site units help?
Residential and commercial developers must deliver at least 10% BNG per project. If on‑site delivery isn’t practical, we offer tailored off‑site units that can be pre‑reserved at the very early pre‑planning stages, providing certainty from the outset.
Will I always need to buy off‑site BNG units?
Not always. We can prepare a Biodiversity Gain Plan early in the process to assess your on‑site potential. This gives you clarity on whether off‑site units are needed, helping you plan, budget, and avoid delays.
Are NatCaps BNG units fully registered and compliant?
Yes. All units are from legally secured, nationally registered BNG sites. Our BNG sites are managed in accordance with DEFRA guidance, with delivery funded and monitored for 30 years.
What is the typical price range for BNG?
Unit prices vary based on habitat type, location, and availability. Costs typically range from £20,000 – £50,000 per unit. We provide transparent pricing and help you find the most cost‑effective units, ideally located near your development.
What happens once I have purchased BNG units?
Once units are purchased, we handle all reporting, legal agreements, and ecological delivery. You’ll receive formal documentation confirming your BNG contribution, which can be submitted to the planning authority to discharge your BNG planning condition.
What are the consequences if my development fails to achieve BNG?
Failure to comply can result in planning permission delays, financial penalties, or being unable to proceed with the project. Early planning and expert advice are essential to avoid costly issues.
Is BNG mandatory for every development project?
Yes. BNG is now legally mandatory for developments in England, although certain exemptions apply. For Nationally Significant Infrastructure Projects, the requirement will become effective in November 2025.
How is BNG assessed?
The Statutory Biodiversity Metric, a DEFRA‑approved tool, is used to assess habitat value before and after development. This metric is applied by qualified ecologists to calculate the number of BNG units gained or lost.
What is the Mitigation Hierarchy, and how does it relate to BNG?
The Mitigation Hierarchy is a strategic framework guiding biodiversity management, giving the order in which BNG delivery should be prioritised. The order is as follows:
On-site. By avoiding impact in the first place, enhancing existing habitats or creating new habitats.
Off-site. Purchase of off-site BNG units as close to the development as possible. (as close to impact as possible – should 100% speak to developers before developing the plan)
Statutory. Purchase Statutory BNG units from Natural England. This is actively discouraged by Natural England with them charging double the market price.
What BNG services does Natural Capital Partners provide for developers?
We help developers meet their BNG obligations through BNG Gain Plans and high‑integrity off‑site units.
How can I be confident I am maximising the value of my BNG units on-site?
Increasing unit numbers beyond the baseline requires advanced datasets and specialised expertise. Typically, ecology firms will only utilise the DEFRA Metric to a basic level because they lack the necessary technology, data and capabilities in hydrogeology, hydrology, climate analysis, financial evaluation, and geodata analysis. NatCap Partners has these specialised services in‑house.