FOUNDATION FRAMEWORK provider will need to complete sections of the Metric and understand the spatial risk multiplier . This process requires significant knowledge of biodiversity habitats , the rules of BNG , and the specific parcels of land being provided as part of your solution . You can find support by working with experts in this space . Companies like ours can help with this process and have the necessary expertise and knowledge to guide you through the process .
Within the DEFRA metric , the Spatial Risk Multiplier is a rule-based system that penalises the unit provider based on the distance that the unit is delivered from your proposed development . On the developer side of the fence , arguably this isn ’ t their concern . They need to purchase a certain number of BNG units . However , for the offsite provider , the situation is more complex .
They may need to provide 1x , 1.5x or 2x the units to compensate . Depending on whether they are located in the developments LPA ( Local Planning Authority ) / NCA ( National Character Area ) they could just provide one unit . If they are in the adjoining LPA / NCA it ’ s 1.5x or if they are located outside this area as many as two units for each one needed by the developer . In doing this , the Risk Multiplier is incentivising local nature recovery and if that isn ’ t possible , it encourages delivering significantly more biodiversity the further away from the development site .
You might wonder why this is even a thing , and surely BNG units can be sourced locally . However , we expect that for some time , units may be unavailable to many local authorities . The demand will significantly outstrip supply and in some LPA ’ s such as London or densely built-up areas , there may never be enough BNG .
In many ways , the DEFRA Metric and Spatial Risk Multiplier delivers a well-thought-out instrument as part of the legislation . It factors in a preference to deliver biodiversity locally to planning developments , which is likely favourable to residents and planning authorities . However , it ’ s not commercially naive enough to believe that BNG can be delivered anywhere in England . Over time , it ’ s also likely to ensure that Offsite BNG providers will favour locations closer to significant development regions , putting a premium on these units . The Spatial Risk Multiplier incentivises nature closer to development , but it also provides practical solutions if this isn ’ t possible .
From what we ’ ve seen in the early stage of the market we expect the rollout of BNG to be slightly bumpy . Whilst we are extremely optimistic about the role of Biodiversity Net Gain both for nature and the reputation benefits within the property industry , it is important to recognise that , like any new market there will be challenges in implementing this new legislation and scaling up its delivery .
Ian Hambleton , Director of Biodiversity Units UK
As an example , we are already witnessing a significant shortage of approved Section 106 agreements in England . These agreements serve as the necessary paperwork until conservation covenants are fully implemented . Although there are reportedly a large number of BNG unit providers , very few of them have been granted their Section 106 agreements .
Of course , as more units come on stream and are available this volatility in pricing should settle down and become a much more standard part of development . But during this early phase developers and their associated parties should try to get to grips with some of the technical aspects of the law , or work with companies who are keenly abreast of the legislation and can offer commercial advice on how to navigate through the process . �
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