Research by AiDash, a software-as-a-service (SaaS) provider, indicates that UK developers are incurring costs exceeding £300,000 per day due to reliance on traditional methods of achieving biodiversity net gain (BNG). Since the new regulations requiring a BNG of at least 10% for most new developments in England came into effect on February 12, 2024, developers have already faced costs amounting to £12 million.
The challenges associated with the conventional approaches include delays in planning applications due to the absence of a BNG plan or biodiversity baseline, which can extend the approval process by several weeks or months. Additionally, the complexities involved in acquiring BNG credits, which are necessary to meet regulatory requirements but can vary significantly in price, complicate matters further. Initially proposed at a base price of £20,000 per credit, the Department for Environment, Food & Rural Affairs (Defra) now suggests that credits can cost between £42,000 and £650,000.
The process of purchasing credits also entails geographical proximity to the development site and approval by local planning authorities, leading to potential scarcity and logistical hurdles.
AiDash advocates for a shift towards leveraging new technologies such as artificial intelligence and satellite imagery. These technologies can facilitate accurate and efficient habitat mapping, quick assessment of large areas, and production of compliant BNG plans that align with new regulatory frameworks.
Shashin Mishra, vice president of EMEA at AiDash, emphasized the critical nature of BNG for the UK’s environmental goals and the unnecessary costs incurred by outdated methods. “It is time for a shift in approach, integrating AI and satellite technology as tools to complement and enhance the vital work of skilled ecologists,” Mishra stated. He also noted the pressures of high interest rates and recent challenges in housebuilding, underscoring the need for developers to adopt new technologies to realize significant savings and ensure successful project delivery.
Further highlighting the importance of BNG, a report published by the National Audit Office on May 17, 2024, titled “Implementing statutory biodiversity net gain,” discussed the ongoing biodiversity loss and the role of BNG in reversing this trend. The report pointed out a 32% average decline in species abundance for 682 terrestrial and freshwater species from 1970 to 2021, and noted Britain’s significant biodiversity loss compared to other Western European countries and the G7 nations.
The report also provided recommendations for Defra to ensure adequate capacity and funding for local authorities, and to publish annual information on the impact of statutory BNG on overall biodiversity. These steps are aimed at enhancing the effectiveness of BNG measures and supporting sustainable development.
