How to Register Land for Biodiversity Credits or Nature Credits

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As Biodiversity Net Gain (BNG) becomes embedded within the planning system in England, many landowners are asking the same practical question: how to register land for biodiversity credits or nature credits in a compliant and commercially viable way.

Under the Environment Act 2021, most developments in England are now subject to mandatory biodiversity net gain. Developers must demonstrate at least a 10% uplift in biodiversity value, calculated using the statutory biodiversity metric. Where sufficient gains cannot be delivered on site, they must secure off-site biodiversity units from a registered biodiversity gain site.

This article explains how landowners can create and register a gain site, the legal steps involved, and how biodiversity units are brought to the open market.

Understanding Biodiversity Net Gain (BNG)

Before exploring the registration process, it is important to understand how biodiversity net gain BNG operates within the planning framework.

When submitting planning applications, developers must (under Schedule 7A of the Town and Country Planning Act):

  • Calculate the baseline biodiversity value of the development site using the DEFRA biodiversity metric tool
  • Apply the BNG mitigation hierarchy (avoid, mitigate, compensate)
  • Deliver as much on site BNG as possible
  • Secure off site gains if required
  • Demonstrate compliance within a Biodiversity Gain Plan

 

The metric produces a quantified output measured in biodiversity units. If there is a shortfall after on-site habitat enhancement, the developer must purchase biodiversity units elsewhere to meet the biodiversity gain objective.

This is where landowners play a role.

What Is a Biodiversity Gain Site?

A biodiversity gain site (sometimes referred to as a habitat bank or offset site) is land legally committed to delivering measurable habitat enhancement or habitat creation for at least 30 years.

To qualify, the site must:

  • Be subject to a legally binding agreement (a Section 106 agreement or Conservation Covenant)
  • Deliver measurable uplift to biodiversity via an agreed habitat management plan, measured using the biodiversity metric
  • Be registered on the Biodiversity Gain Site Register (maintained by Natural England)
  • Include a long-term monitoring plan
  • Secure oversight via the Section 106 agreement or Conservation Covenant

 

Once registered, the land can generate offsite biodiversity units that developers may purchase to satisfy planning consent conditions.

Step-by-Step: How to Register Land for Biodiversity Credits or Nature Credits

1. Confirm Land Eligibility

The first stage is assessing whether your land is suitable.

Key considerations include:

  • Clear land ownership and defined land boundary
  • No overriding constraints such as incompatible existing management covenants
  • No legal conflicts affecting future management
  • Ability to demonstrate genuine habitat enhancement works

 

Underperforming arable, species-poor grassland, or marginal agricultural land often presents strong potential. However, land already delivering high biodiversity value can also have strong uplift potential under the metric by building further on a strong starting point.

2. Baseline Survey and Metric Calculation

A professional ecologist must:

  • Categorise existing habitats using the UK Habitat Classification system
  • Assess the condition of existing habitats
  • Apply the Statutory biodiversity metric
  • Produce a formal metric calculation

 

For small developments, the small sites metric may apply. However, gain sites typically require the full statutory metric tool.

This establishes the baseline biodiversity value and models projected uplift from proposed new habitats or enhancement works.

3. Prepare a Habitat Management and Monitoring Plan (HMMP)

A compliant document must then be prepared outlining:

  • The habitat creation proposals
  • Detailed habitat management prescriptions
  • Monitoring arrangements for 30+ years
  • Responsible parties
  • Trigger points and reporting structure

 

The HMMP forms part of the legal framework securing the biodiversity gain. For Civity sites, the HMMP is appended to the Conservation Covenant or Section 106 agreement and becomes enforceable on a parcel of land via a local land charge.

4. Secure the Legal Agreement

Every biodiversity gain site must be secured via a legal agreement for a minimum of 30 years.

There are two routes:

Section 106 Agreement

A planning obligation with the local planning authority, typically used where the LPA acts as enforcement body.

Conservation Covenant

A private agreement between the landowner and a designated responsible body, introduced under the Environment Act 2021.

Both create a legally binding agreement that runs with the land and ensures delivery of habitat enhancement.

5. Register the Site

Once the legal agreement is executed, the site must be entered onto the Biodiversity Gain Site Register operated by Natural England.

Registration confirms:

  • The gain site reference number
  • Habitat types and units available
  • Legal mechanism used
  • Responsible body or planning authority oversight

 

Only once listed on the register can biodiversity units be formally allocated to a development project.

6. Allocate and Sell Biodiversity Units

When a developer cannot meet BNG requirements on site, they must secure off site BNG before planning permission is finalised.

The developer:

  • Identifies required unit type and number
  • Purchases units
  • Includes allocation details within their Biodiversity Gain Plan
  • Submits this to the local planning authority
 
The units are then legally linked to that development.
 
If off-site units are not available, developers may need to purchase statutory biodiversity credits from government as a last resort, typically at a higher cost.

Key Planning and Regulatory Considerations

Landowners should be aware of:

  • Interaction with existing stewardship schemes (additionality rules apply)
  • Potential stacking with nutrient neutrality or carbon credits
  • Flood risk and environmental constraints
  • Local authorities’ expectations on monitoring and enforcement
  • Ongoing compliance reporting requirements

 

Further guidance is regularly issued by DEFRA and Natural England, particularly regarding stacking and responsible body oversight.

Common Questions from Landowners

Can I create a gain site on part of my holding?

Yes. The red line boundary defining the biodiversity gain site can cover part of a wider landholding, provided the boundary is clearly mapped and legally secured.

How long is the commitment?

Habitats must be maintained for at least 30 years following completion of habitat creation. Most agreements run for 31 years minimum to accommodate establishment works in the first year.

Who enforces compliance?

Either the planning authority (via Section 106) or a responsible body (via Conservation Covenant) monitors compliance.

The Commercial Model: Open Market vs Structured Brokerage

Landowners can attempt to sell biodiversity units directly on the open market. However, this requires:

  • Securing developers
  • Managing legal negotiations
  • Ensuring metric compliance
  • Tracking allocations
  • Administering reporting for each linked development


In practice, most gain sites will serve multiple development projects, meaning several allocations over time.

At Civity

At Civity, we work directly with landowners to structure compliant biodiversity gain sites and bring offsite biodiversity units to market.

Our staged process includes:

  • Free desk-based assessment
  • Scoping visit and habitat modelling
  • Full HMMP production
  • Legal documentation (Lease Agreement, Habitat Management Contract, Section 106 or Conservation Covenant)
  • Registration on the Biodiversity Gain Site Register
  • Brokerage of biodiversity units to developers
  • Long-term monitoring and reporting for the 31-year term

 

We do not carry out on-site ecological assessments for development land, and we do not support developers in registering habitat banks linked to their own developments. Our role is to facilitate compliant, transparent transactions between third-party landowners and developers who need biodiversity units to meet BNG requirements.

Achieving Biodiversity Gain in Practice

Registering land for biodiversity credits is not simply an administrative exercise. It is a structured legal and ecological commitment that must:

  • Deliver measurable biodiversity uplift
  • Be secured through a legally binding agreement
  • Be transparently registered
  • Be monitored over three decades
  • Align with the government’s biodiversity gain objective

 

When properly structured, it provides:

  • Long-term income for landowners
  • Certainty for developers seeking planning consent
  • Measurable habitat creation
  • A practical route to achieving net gain across England’s planning system

 

For landowners considering how to register land for biodiversity credits or nature credits, the process requires careful technical input, robust legal documentation, and a clear understanding of planning obligations.

Done correctly, it provides a compliant framework for delivering environmental enhancement alongside sustainable development — ensuring biodiversity gain is not simply a planning requirement but a meaningful contribution to long-term nature recovery.

Disclaimer

This article is provided for general informational purposes only and does not constitute legal, ecological, financial, or planning advice. Biodiversity Net Gain requirements are governed by the Environment Act 2021, associated regulations, and guidance issued by DEFRA and Natural England, which may be updated from time to time. Landowners and developers should seek independent professional advice tailored to their specific site, land ownership, and planning circumstances before entering into any legally binding agreement, including a Section 106 agreement or Conservation Covenant.