A new report is calling on the UK government to remove policy preferences for on-site Biodiversity Net Gain (BNG) in favour of off-site delivery, arguing this shift could unlock more meaningful nature recovery.
It would also reduce costs for developers and support national housing and biodiversity goals.
The study, The Comparative Value of On-site vs Off-site Biodiversity Net Gain for Restoring Nature, led by David Hill, former Deputy Chair of Natural England and Founder of Environment Bank, shows that delivering BNG within development boundaries is often ineffective and expensive, while off-site solutions offer better ecological outcomes and cost efficiency.
“Most developments are too small to deliver any meaningful on-site biodiversity value through BNG,” said Hill.
“Removing this preference, as is proposed in the recent government consultation, will make it easier for developers to deliver their legal compliance by purchasing off-site BNG units. This is far better for biodiversity and cheaper for the developer.”
Off-site BNG is delivered on larger, professionally managed sites with long-term funding and legal oversight.
In contrast, on-site BNG typically occurs in small, fragmented spaces, adding costs of up to £15,000 per house. Off-site solutions could reduce that to around £3,000, the report finds.
The study, which includes input from experts across law, development and land management, recommends five actions: removing the policy preference for on-site BNG, enabling local planning authorities to promote off-site delivery, improving compliance for on-site projects, creating equal standards for both models and strengthening government messaging around BNG.
The findings come amid a government consultation on BNG policy for major infrastructure projects.
Currently, less than 10% of BNG is delivered off-site, despite expectations of over 50%.
“The world is watching England’s BNG regime,” said environmental barrister Nina Pindham. “Buying off-site BNG units saves money and leads to better, bigger, more certain gains for nature overall.”
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