According to a recent study, 31% of developers are unaware of the upcoming Biodiversity Net Gains regulations, which are set to become effective this month
The Biodiversity Net Gain regulations are enforced to support nature conservation during land development. The regulation aims to ensure that wildlife habitats are left in a better state than before development.
The regulations will be enacted under the Town and Country Planning Act 1990, except for exempt cases, and will be enforced for small sites in April 2024.
Stakeholders have concerns over Biodiversity Net Gain
The study conducted by Shawbrook revealed that just 22% of developers believe that the new Biodiversity Net Gain regulations will not affect their business.
Due to the ongoing emphasis on sustainability in the development industry, developers aware of the regulations are already allocating a significant portion of their budget to achieve the Biodiversity Net Gain regulations. On average, 41% of their expenses will go towards this purpose.
What action needs to be taken?
To ensure the sustainability of their projects, developers will need to undergo several changes.
The most common step is investing in high-quality insulation, with 28% of developers doing this.
26% have invested in environmentally friendly building materials and renewable energy systems such as solar panels, as well as carbon offsetting for their construction work. Other sustainability measures include:
- 25% collaborate with local councils to improve public transportation links.
- 25% focus on better waste disposal practices for building materials.
- 24% prioritise the reuse of building materials.
- 23% incorporate green spaces and cycle paths into their developments.
- 23% install electric car charging points.
- 21% create spaces and habitats for local wildlife.
- 21% work on reducing traffic around building sites.
- 18% engage in re-wilding efforts within the development site.
“It’s positive that steps are being taken to improve biodiversity on development projects. Time will tell if the initiative is effective, and the hope will be that it does not negatively impact planning approval processes,” commented Terry Woodley, MD of development finance at Shawbrook.
“Our data shows that many developers must familiarise themselves quickly with the new regulation. Given the high proportion of costs already being allocated by developers to comply, developers who are unaware risk a substantial impact on their businesses once the regulation is enforced,” he concluded.
