United Kingdom
Find out which grants match your project – now just £24.50
April Sale: 30% off

Your settings

What's your main interest

What kind of advice?

Country

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Last Resort Option: Buying and Using Statutory Biodiversity Credits

Login to continue reading

It's free, just sign up on the Free plan to continue.

No credit card required. Just verify your email.

When developers can’t deliver Biodiversity Net Gain on-site or off-site, statutory biodiversity credits are the fallback. This article explains how they work, who can use them, and why landowners can’t sell them directly.

Published: 8 April 2025

Most developers now know the rule: under England’s Biodiversity Net Gain (BNG) policy, you’ve got to leave nature in better shape than you found it. Usually, this means creating or enhancing habitats on-site, or buying biodiversity units from nearby landowners.

But what if neither option is possible? That’s where statutory biodiversity credits come in—the official “last resort” in the BNG toolkit.

Let’s break down what they are, who can use them, and why they’re not designed to be the easy way out.

What are statutory biodiversity credits?

Statutory biodiversity credits are government-issued credits that developers can purchase when they can’t deliver their BNG obligations through on-site or off-site habitat improvements.

Each credit represents a unit of biodiversity gain, and buying them transfers the responsibility to the government—who then invests the funds into habitat creation projects elsewhere in England.

These credits are designed to ensure no development gets stuck just because off-site units are hard to find. But—and it’s a big but—they come with serious strings attached.

When can developers use them?

Statutory biodiversity credits can only be used when no other reasonable options are available. That means a developer must first demonstrate that:

  • On-site habitat creation isn’t possible, and
  • Off-site biodiversity units aren’t available (or appropriate)

The local planning authority must be satisfied that the developer has made a genuine effort to source units—and only then will they consider allowing the use of statutory credits.

In practice, this means you can’t just skip the work of finding a local landowner to partner with. Planning officers are under clear instructions to ensure credits are a last resort, not a shortcut.

How much do they cost?

More than you might expect.

The government has deliberately priced statutory biodiversity credits higher than the average cost of off-site units. This pricing is meant to:

  • Encourage local nature partnerships,
  • Support the private biodiversity market, and
  • Reserve government credits for only the most constrained sites

Credit prices vary depending on habitat type and strategic significance, but they’re publicly listed and non-negotiable. For developers, this means that using credits can quickly eat into project margins.

Can landowners sell statutory credits?

No—statutory biodiversity credits are only sold by the government. Landowners who want to sell biodiversity units must:

  • Create or enhance habitats on their own land,
  • Register the site as a biodiversity gain site, and
  • Sell their units privately to developers

While both statutory credits and private biodiversity units serve the same ecological purpose, they operate in completely different ways.

So, if you’re a landowner wondering whether you can “get in” on selling credits—you can, but only through the private unit market, not the statutory system.

Why does this matter for landowners?

The rise of statutory credits signals two things:

  1. There’s real demand for off-site biodiversity units—so if you’re thinking about restoring land for BNG, the market is there.
  2. The government is keen for the private sector to lead in habitat delivery. That means opportunities for landowners to step in where developers need help meeting their obligations.

If you’ve got land, you’ve got options. And if you’re registered and ready, you might just become a go-to supplier in your area.

AskGrant can help

If you're a landowner considering habitat creation—or a developer wondering if statutory credits are your only route—AskGrant is here to help. We’ll walk you through the process, weigh your options, and connect you to tools and people that make BNG feel less like red tape and more like opportunity.

Menu

When developers can’t deliver Biodiversity Net Gain on-site or off-site, statutory biodiversity credits are the fallback. This article explains how they work, who can use them, and why landowners can’t sell them directly.

Published: 8 April 2025

Most developers now know the rule: under England’s Biodiversity Net Gain (BNG) policy, you’ve got to leave nature in better shape than you found it. Usually, this means creating or enhancing habitats on-site, or buying biodiversity units from nearby landowners.

But what if neither option is possible? That’s where statutory biodiversity credits come in—the official “last resort” in the BNG toolkit.

Let’s break down what they are, who can use them, and why they’re not designed to be the easy way out.

What are statutory biodiversity credits?

Statutory biodiversity credits are government-issued credits that developers can purchase when they can’t deliver their BNG obligations through on-site or off-site habitat improvements.

Each credit represents a unit of biodiversity gain, and buying them transfers the responsibility to the government—who then invests the funds into habitat creation projects elsewhere in England.

These credits are designed to ensure no development gets stuck just because off-site units are hard to find. But—and it’s a big but—they come with serious strings attached.

When can developers use them?

Statutory biodiversity credits can only be used when no other reasonable options are available. That means a developer must first demonstrate that:

  • On-site habitat creation isn’t possible, and
  • Off-site biodiversity units aren’t available (or appropriate)

The local planning authority must be satisfied that the developer has made a genuine effort to source units—and only then will they consider allowing the use of statutory credits.

In practice, this means you can’t just skip the work of finding a local landowner to partner with. Planning officers are under clear instructions to ensure credits are a last resort, not a shortcut.

How much do they cost?

More than you might expect.

The government has deliberately priced statutory biodiversity credits higher than the average cost of off-site units. This pricing is meant to:

  • Encourage local nature partnerships,
  • Support the private biodiversity market, and
  • Reserve government credits for only the most constrained sites

Credit prices vary depending on habitat type and strategic significance, but they’re publicly listed and non-negotiable. For developers, this means that using credits can quickly eat into project margins.

Can landowners sell statutory credits?

No—statutory biodiversity credits are only sold by the government. Landowners who want to sell biodiversity units must:

  • Create or enhance habitats on their own land,
  • Register the site as a biodiversity gain site, and
  • Sell their units privately to developers

While both statutory credits and private biodiversity units serve the same ecological purpose, they operate in completely different ways.

So, if you’re a landowner wondering whether you can “get in” on selling credits—you can, but only through the private unit market, not the statutory system.

Why does this matter for landowners?

The rise of statutory credits signals two things:

  1. There’s real demand for off-site biodiversity units—so if you’re thinking about restoring land for BNG, the market is there.
  2. The government is keen for the private sector to lead in habitat delivery. That means opportunities for landowners to step in where developers need help meeting their obligations.

If you’ve got land, you’ve got options. And if you’re registered and ready, you might just become a go-to supplier in your area.

AskGrant can help

If you're a landowner considering habitat creation—or a developer wondering if statutory credits are your only route—AskGrant is here to help. We’ll walk you through the process, weigh your options, and connect you to tools and people that make BNG feel less like red tape and more like opportunity.