Part 1 of this two-part article summarised the BNG requirements, legal mechanisms and key considerations for developers under the new framework. You can read it here.
Although Biodiversity Net Gain (BNG) presents new challenges for developers, it also creates significant opportunities for landowners with underused or ecologically suitable land. Through habitat creation and enhancement, landowners can earn sustainable income while supporting national conservation goals.
BNG as a Revenue Opportunity for Landowners
BNG introduces a new market for biodiversity units — tradable credits generated when landowners create or restore habitats in line with Natural England’s metric. Developers who cannot deliver sufficient biodiversity improvements on-site can purchase these units to offset ecological impacts elsewhere.
With the BNG register now operational, landowners who act early can benefit from rising demand near development hotspots. These agreements not only offer financial returns, but also deliver environmental and reputational value for those leading the way in habitat recovery.
Key Considerations for Landowners
To sell biodiversity units, land must first undergo an ecological assessment and be registered on the Natural England BNG register as a biodiversity gain site.
A Section 106 Agreement or Conservation Covenant is required to secure the habitat enhancement legally for a minimum of 30 years. Learn more about Section 106 Agreements and Conservation Covenants in Part 1 here.
Landowners are also responsible for long-term monitoring, management and reporting to ensure compliance with the statutory framework.
Selling Biodiversity Units
A detailed Biodiversity Unit Sale Contract is essential when selling units to developers. This should clearly outline:
- The number and type of units sold
- The price and payment triggers
- Deposit and expiry terms
- Obligations for ongoing maintenance and reporting
There are several ways to sell biodiversity units:
1. Independent Sale
Landowners can sell biodiversity units directly to developers, retaining full control over their biodiversity gain site and revenue.
2. Partnering with Other Land Managers or NGOs
Working collaboratively with local conservation organisations or other landowners allows for the creation of larger, connected habitats. This can make sites more attractive to buyers and improve ecological outcomes. Such collaborations may lead to habitat banks, where biodiversity units are managed and sold collectively.
3. Using a Habitat Bank Operator
A habitat bank operator can assist landowners with finding buyers, securing legal agreements, and registering sites. Depending on the arrangement, the operator or land manager may oversee habitat creation, enhancement, management, and compliance reporting.
Final Thoughts
Biodiversity Net Gain represents a transformative shift in planning and environmental law. While it imposes obligations on developers, it equally opens up commercial opportunities for landowners and conservation partners.
Whether you’re exploring BNG income opportunities, negotiating a Section 106 Agreement or drafting a Conservation Covenant, obtaining expert legal advice is crucial. The long-term and enforceable nature of these commitments means careful drafting and due diligence are key to ensuring success.
If you would like tailored advice on how Biodiversity Net Gain (BNG) could create opportunities for your land or how to navigate the legal and practical requirements, please contact Emma Ship, solicitor in our Planning and Environment team. We can advise on registering biodiversity gain sites, drafting Section 106 Agreements or Conservation Covenants and structuring biodiversity unit sales to ensure compliance and maximise value.
Related reading
For further insight into how Biodiversity Net Gain is influencing the agricultural sector, read our blog: Biodiversity Net Gain: The key to sustainable farming.
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