
Biodiversity Net Gain Is Now Mandatory for NSIPs: What Developers Need to Know
Biodiversity Net Gain (BNG) became mandatory for Nationally Significant Infrastructure Projects (NSIPs) in England on 2 November 2026. Developers submitting a Development Consent Order (DCO) application on or after this date must demonstrate how their project will deliver at least a 10% increase in biodiversity value, using the statutory biodiversity metric and an outline Biodiversity Gain Plan. This marks a significant change for major infrastructure projects, bringing biodiversity requirements into the development consent process for nationally significant schemes. Developers must now consider habitat loss, ecological enhancement and biodiversity unit requirements from the earliest stages of project design. For projects where on-site habitat creation cannot deliver the full biodiversity requirement, off-site biodiversity units provide an alternative route to compliance. Through Civity’s Biodiversity Net Gain services for developers, project teams can identify suitable off-site units using their completed biodiversity metric calculations and explore available habitat bank options. Understanding the new requirements is essential for managing development costs, planning applications and long-term environmental obligations. What Has Changed for Biodiversity Net Gain on Nationally Significant Infrastructure Projects? From 2 November 2026, developers applying for a Development Consent Order for an eligible Nationally Significant Infrastructure Project in England must demonstrate how they will achieve at least 10% Biodiversity Net Gain. The requirement is integrated into the development consent process, with applicants expected to provide ecological calculations, an outline Biodiversity Gain Plan and a strategy for delivering the necessary improvements. Mandatory BNG was introduced for most major developments under the Town and Country Planning Act framework in February 2024, with requirements subsequently extended to smaller developments. However, Nationally Significant Infrastructure Projects operate under a separate consenting system established by the Planning Act 2008. The Environment Act 2021 introduced the legislative framework for extending mandatory BNG to these projects. Schedule 15 amended the Planning Act 2008, creating specific requirements for biodiversity improvements associated with nationally significant development. The new rules mean that developers must demonstrate how biodiversity will be protected, enhanced and managed alongside the delivery of essential infrastructure. The government’s guidance on BNG for Nationally Significant Infrastructure Projects explains how these requirements apply throughout project design, consenting, construction and operation. Importantly, the commencement date relates to DCO applications submitted on or after 2 November 2026. Projects with earlier applications are not automatically brought into the mandatory regime simply because construction or examination continues beyond that date. Which Nationally Significant Infrastructure Projects Must Deliver BNG? Mandatory Biodiversity Net Gain applies to eligible Nationally Significant Infrastructure Projects with development in England where a Development Consent Order application is submitted on or after 2 November 2026. This includes major infrastructure schemes across sectors such as energy, transport, water resources and other development categories covered by the Planning Act 2008 and the relevant biodiversity gain statements. Examples of infrastructure that may fall within the NSIP consenting regime include major road and rail developments, electricity generation and transmission infrastructure, airports, water infrastructure and certain other nationally significant facilities. Whether an individual project qualifies as an NSIP depends on its statutory category, scale and consenting route. The BNG requirement applies to the relevant English components of a project, including development extending into the intertidal zone as far as the mean low-water mark. Marine development beyond that boundary is outside the scope of the mandatory NSIP biodiversity gain objective. For projects crossing national borders, only the habitats within England are included in the mandatory BNG calculation. Any voluntary biodiversity improvements delivered outside England must be assessed separately and cannot be used to satisfy the English requirement. Developers should also distinguish between projects consented through the Planning Act 2008 and infrastructure authorised through other routes, such as Hybrid Bills, which are not covered by this particular mandatory BNG regime. The relevant biodiversity gain statement should be checked before preparing the DCO application, as it establishes the requirements applicable to the project. How Does the 10% Biodiversity Net Gain Requirement Work for NSIPs? The 10% Biodiversity Net Gain requirement means that the biodiversity value attributable to a qualifying infrastructure project must exceed its pre-development biodiversity value by at least 10%. Developers calculate this improvement using the statutory biodiversity metric, which measures habitat value through standardised biodiversity units rather than simply comparing the amount of green space before and after development. The metric considers habitat characteristics such as type, area, condition and strategic significance, alongside factors affecting habitat creation and enhancement. For example, an infrastructure project may involve the permanent removal of grassland, temporary disturbance to hedgerows and the creation of new habitats within the development boundary. Each relevant habitat contributes to the biodiversity calculation according to its characteristics and expected condition. The developer’s ecologist establishes the baseline biodiversity value and assesses the proposed post-development habitat value. If the proposed on-site improvements are insufficient to meet the required 10% increase, additional biodiversity units may be needed from suitable off-site habitat creation or enhancement. A project with a baseline of 100 area habitat units would need to demonstrate at least 110 units after the relevant metric adjustments. This is a simplified illustration: actual calculations must also satisfy habitat trading rules and the separate requirements for different unit categories. Area habitats, hedgerows and watercourses are assessed separately within the statutory metric. A surplus of one unit type cannot automatically compensate for a shortfall in another. The statutory biodiversity metric tools and guidance provide the methodology that qualified ecological professionals must use. What Is an Outline Biodiversity Gain Plan for an NSIP? An outline Biodiversity Gain Plan is a document submitted with a Development Consent Order application that explains how a Nationally Significant Infrastructure Project will achieve the statutory 10% biodiversity gain objective. It sets out the project’s biodiversity baseline, proposed habitat improvements, potential off-site biodiversity requirements, delivery arrangements and how any remaining uncertainties will be managed. Unlike a final management document, the outline plan accommodates the fact that major infrastructure projects may still have design uncertainties during the consenting process. However, it must provide sufficient evidence for the Examining Authority and Secretary of State to understand whether the proposed development can meet its biodiversity obligations. The outline Biodiversity Gain Plan should include the biodiversity metric calculation, the BNG boundary plan, proposed on-site improvements and the intended approach to obtaining off-site units where required. Developers must also explain how they have applied the mitigation hierarchy and provide a realistic strategy for securing biodiversity gains. Where off-site delivery forms part of the approach, the plan should identify the types and quantities of units required, potential availability and arrangements for obtaining them. The application must also include proposed DCO requirements that secure delivery of the biodiversity gain objective. The government’s guidance on preparing DCO application documents confirms that an outline Biodiversity Gain Plan forms part of the application requirements from 2 November 2026. What Is a Biodiversity Gain Statement? A biodiversity gain statement is a government policy document setting out how a particular category of NSIP must calculate, deliver and report biodiversity net gain. The more detail that can be included in these statements, the better. The fact that many aspects will be unknown or subject to change as the project proposals progress is an understood component of these statements; what’s important is certainty of deliverability, subject to predictable deviations and error margins, not necessarily fixing finer details. These statements have the same effect as if they were included in the relevant National Policy Statement. They establish the requirements that developers must follow, while the outline of the Biodiversity Gain Plan demonstrates how an individual project intends to comply. The government has published biodiversity gain statements for different NSIP categories, including statements covering energy, national networks, airports and other infrastructure types. Developers should use the statement relevant to their project alongside the supporting government guidance. How Is the Biodiversity Baseline Calculated for Major Infrastructure Projects? The biodiversity baseline for an NSIP is calculated by assessing the pre-development biodiversity value of habitats within the relevant BNG boundary using the statutory biodiversity metric. This includes habitats within the Development Consent Order limits that will be negatively affected by construction or operation, as well as habitats that will contribute towards the project’s biodiversity improvements. The BNG boundary is not necessarily identical to the full DCO order limits. Order limits define the geographical extent of the powers sought through the Development Consent Order. The BNG boundary identifies the habitats that must be included in the biodiversity calculation. This distinction is particularly important for large infrastructure projects, where order limits may cover extensive landholdings, temporary construction areas and associated development. The baseline must include habitats subject to permanent or temporary loss, as well as habitats whose condition is expected to deteriorate. For example, a railway development may affect habitats through track construction, temporary compounds, access routes and operational maintenance. These impacts must be considered even where they occur outside the principal permanent infrastructure footprint. Conversely, habitats that will remain genuinely unaffected may be excluded from the baseline where the developer’s ecologist can justify their exclusion. Developers must provide a single biodiversity metric calculation for the NSIP, including associated development and separate project areas, even where the scheme spans several local planning authorities. How Should Developers Address Uncertain Project Designs? Major infrastructure schemes frequently involve route options, design flexibility and limits of deviation. Where the final extent of habitat impacts is uncertain, developers must use a realistic worst-case assessment based on the maximum design and construction parameters that could reasonably occur. This does not mean assuming that every habitat within the order limits will be destroyed. Instead, the assessment should reflect the greatest realistic habitat impact arising from the proposed development. For example, a road scheme with alternative alignments may need to assess the most ecologically significant realistic route while explaining how biodiversity requirements would be addressed if a different alignment is selected. These assumptions must be documented within the outline of the Biodiversity Gain Plan. Early ecological involvement can help project teams avoid unnecessary habitat loss, refine development boundaries and reduce the number of biodiversity units required. Why Must BNG Be Considered During the Early Design Stages? Biodiversity Net Gain should be incorporated into the earliest stages of NSIP design because habitat impacts, construction methods and land requirements directly affect the number and type of biodiversity units needed. Early consideration allows developers to avoid sensitive habitats, identify suitable enhancement opportunities and investigate off-site delivery before ecological constraints become expensive design or consenting problems. For major infrastructure projects, biodiversity considerations should inform route selection, site layout, construction planning and the management of temporary working areas. The mitigation hierarchy remains central to this process. Developers should first seek to avoid significant harm to biodiversity. Where impacts cannot be avoided, they should minimise those impacts and provide appropriate mitigation. Compensation is considered where residual harm remains. BNG operates alongside this hierarchy rather than replacing it. For example, a proposed transport corridor might be redesigned to avoid a valuable woodland or wetland habitat. Where avoidance is not possible, the project team may investigate alternative construction methods, habitat reinstatement or suitable compensation measures. The biodiversity metric can then help assess how different design options affect the overall BNG requirement. Early engagement with ecologists, local planning authorities, Natural England, the Planning Inspectorate and other relevant stakeholders can also help identify issues before the DCO application is submitted. This is particularly important where a project spans multiple administrative areas or involves habitats that are difficult to replace. Can NSIP Developers Use Off-Site Biodiversity Units to Meet BNG Requirements? Yes. Developers of Nationally Significant infrastructure projects can use off-site biodiversity units to meet some or all of their required biodiversity improvements where suitable habitat creation or enhancement cannot be delivered within the project boundary. Off-site units must satisfy the statutory biodiversity metric, habitat trading rules, legal security requirements and registration arrangements. For NSIPs, developers can consider on-site and off-site biodiversity delivery simultaneously. This provides flexibility for large projects where the physical infrastructure, construction activities or operational requirements limit opportunities for habitat creation. Off-site biodiversity units are generated through ecological improvements on land outside the development’s BNG boundary and order limits. These improvements may involve creating species-rich grassland, restoring wetlands, enhancing woodland or establishing other suitable habitats. Developers can obtain off-site units from third-party habitat banks or generate them on other land they own. However, off-site units must be appropriate for the biodiversity losses they are intended to address. The habitat type, distinctiveness, location and expected ecological condition all influence whether particular units are suitable. For developers exploring off-site Biodiversity Net Gain units for sale, identifying the required habitat categories early can help establish which opportunities are commercially and ecologically viable. How Do Habitat Banks Support Major Infrastructure Projects? Habitat banks are areas of land where habitats are created or enhanced to generate biodiversity units that can be allocated to developments. These sites are generally managed through long-term agreements with landowners and must meet the legal and registration requirements for off-site BNG. Habitat banks can provide an alternative where infrastructure projects have limited space for on-site biodiversity enhancements or require habitat types that cannot realistically be created within the development boundary. For example, a major energy project may need additional grassland or woodland units to address residual biodiversity requirements. A suitable habitat bank could provide those units through legally secured habitat improvements. The developer would still need to demonstrate that the units meet the project’s requirements and have been properly allocated. How Does the Spatial Risk Multiplier Affect Off-Site BNG Units? The spatial risk multiplier adjusts the contribution of off-site biodiversity units according to their location relative to the development. Units delivered within the relevant local planning authority, National Character Area or other applicable geographical boundary generally retain their full spatial value, while units located further away may be discounted. The multiplier encourages biodiversity improvements to be delivered near the habitats affected by development. For area habitats and hedgerows, the relevant geographical boundaries include local planning authority areas and National Character Areas. Watercourse units use waterbody and operational catchment boundaries, while intertidal units use Marine Plan Areas. For NSIPs, this becomes particularly important because large projects may extend across several geographical boundaries. Government guidance confirms that where an NSIP’s BNG boundary spans multiple relevant areas, off-site units from any of those areas can qualify without a spatial risk penalty. This can provide greater flexibility for linear infrastructure such as railways, roads and electricity transmission projects. However, purchasing units further away may result in a multiplier that reduces their contribution to the project’s biodiversity requirement. Developers should therefore compare more than the advertised price of biodiversity units. A lower-priced unit located further away may not provide the same effective biodiversity contribution as a unit closer to the development. The habitat type, location, trading rules and applicable multiplier should all be considered when evaluating off-site options. What Are the Habitat Trading Rules for NSIP Biodiversity Units? Habitat trading rules determine which biodiversity units can compensate for particular habitat losses. They prevent developers from replacing more ecologically valuable habitats with inappropriate lower-value alternatives and ensure that the biodiversity improvements delivered through BNG are consistent with the Statutory Metric’s ecological requirements. The rules distinguish between habitats according to their distinctiveness and other relevant characteristics. For example, the loss of a higher-distinctiveness habitat will require replacement through the same or similar habitat type depending on the trading rules for that distinctiveness band. Developers cannot assume that any available biodiversity unit will satisfy their project’s requirements. This is particularly relevant for infrastructure schemes affecting several habitat types across extensive development areas. A project may require a combination of grassland, woodland, hedgerow and watercourse units rather than one general type of biodiversity unit. The developer’s ecologist must identify these requirements through the completed statutory biodiversity metric. Civity can then use that information to help identify suitable off-site units and assess available options against the project’s requirements. This distinction is important: the developer’s appointed ecologist remains responsible for preparing the developer-side metric calculation, while Civity supports the identification and supply of appropriate off-site biodiversity units. Do Developers Need to Secure Off-Site Biodiversity Units Before Applying for a DCO? Developers do not generally have to purchase all off-site biodiversity units before submitting a Development Consent Order application. However, their outline Biodiversity Gain Plan must provide a credible strategy for obtaining the required units, including evidence of availability and suitable arrangements where off-site delivery is proposed. The amount of supporting evidence should reflect the scale and complexity of the biodiversity requirement. For example, a project requiring a relatively common habitat type may have several potential sources of off-site units. A project requiring substantial quantities of a scarce or high-distinctiveness habitat may need more detailed evidence that suitable units can realistically be secured. This could include discussions with habitat bank providers, evidence of available units or arrangements to reserve or create the necessary habitats. Government guidance warns that insufficient evidence of off-site unit availability may result in greater scrutiny during the consenting process. Developers should therefore avoid leaving biodiversity procurement until the final stages of project design. Although units can be purchased before development consent, their formal allocation to the NSIP takes place after consent. Early commercial discussions can help establish likely costs, identify suitable locations and allow for changes as the project design develops. How Are Biodiversity Gains Legally Secured and Maintained? Significant on-site biodiversity gains and off-site biodiversity units must be legally secured and managed for at least 30 years following completion of the relevant habitat enhancement works. Legal arrangements establish the responsibilities for habitat creation, management, monitoring and reporting, ensuring that the promised ecological improvements are maintained beyond the construction period. For significant on-site gains, NSIP developers may use DCO requirements, Section 106 planning obligations or conservation covenants, depending on the circumstances. Off-site gains require appropriate legal agreements and registration on the Biodiversity Gain Sites Register. A Habitat Management and Monitoring Plan (HMMP) sets out how habitats will be established, maintained and monitored. For example, a species-rich grassland project may require specific cutting or grazing regimes to achieve its target ecological condition. A wetland restoration scheme may require ongoing water-level management and monitoring of habitat development. The legal and management arrangements should clearly establish who is responsible for carrying out the required activities and providing monitoring reports. For large infrastructure projects, these obligations must be considered alongside long-term operational requirements, access arrangements and potential future changes to the site. The Government’s guidance on creating a Habitat Management and Monitoring Plan explains the information required to support long-term biodiversity delivery. What Happens After a Development Consent Order Is Granted? After receiving development consent, NSIP developers must implement the biodiversity strategy established in their outline Biodiversity Gain Plan and submit updated or phase-specific plans for approval before the relevant development works begin. These plans confirm the project’s biodiversity calculations, habitat proposals, secured gains and arrangements for obtaining any outstanding units. The updated Biodiversity Gain Plan reflects the greater certainty available after development consent has been granted. For example, detailed engineering work may establish the final construction footprint, reducing or increasing the expected habitat impacts. Where the biodiversity calculation changes, the developer may need to revise the number or type of off-site units required. Updated plans must explain relevant changes and provide supporting evidence. For phased developments, the project may use separate biodiversity gain plans for individual phases, while still demonstrating that the overall development will achieve the required 10% net gain. The applicable DCO requirements also establish how and when outstanding biodiversity units must be secured. Government guidance expects developers to secure as many units as reasonably possible before development or the relevant phase begins. Where substantial uncertainty remains, some outstanding units may be secured later under an agreed schedule. However, all required gains must be secured before the project begins operating. This makes ongoing coordination between the developer, ecological consultants and biodiversity unit providers particularly important. Can NSIP Developers Use Statutory Biodiversity Credits Instead of Off-Site Units? Statutory biodiversity credits are available as a last-resort option where an NSIP developer cannot achieve the required biodiversity improvement through on-site habitat measures or off-site biodiversity units. Developers must demonstrate why these alternatives are insufficient before relying on statutory credits to meet their BNG obligations. Statutory credits are sold by the government through Natural England and are different from biodiversity units generated by habitat banks. They are designed to provide a final compliance option rather than replace the private off-site biodiversity market. The statutory credit system includes a spatial adjustment, meaning developers must purchase two statutory credits for every one biodiversity unit required. This can make statutory credits a significant project cost. Developers considering this option must explain their reasoning in the outline Biodiversity Gain Plan and demonstrate that suitable on-site and off-site alternatives have been investigated. The Government’s statutory biodiversity credit pricing guidance provides the published prices for different habitat categories. Because prices and unit requirements vary, developers should calculate their likely costs using the relevant habitat types and current published rates rather than relying on a general estimate. How Can Developers Reduce BNG Costs and Planning Risks for NSIPs? Developers can reduce Biodiversity Net Gain costs and planning risks by integrating ecological assessments into early project design, avoiding unnecessary habitat loss, identifying suitable on-site improvements and investigating off-site biodiversity units before submitting their DCO application. A coordinated approach helps establish realistic costs and reduces uncertainty around habitat availability and delivery. One of the most important considerations is the relationship between development design and biodiversity unit demand. A design change that avoids the loss of a valuable habitat may reduce the number of replacement units required. Similarly, identifying suitable areas for habitat creation within the project boundary can reduce reliance on external biodiversity units. However, on-site habitat improvements must be compatible with the infrastructure’s operational requirements and capable of being maintained over the long term. For example, certain habitats may not be appropriate beneath infrastructure requiring frequent maintenance, unrestricted access or particular safety clearances. Off-site delivery can provide greater flexibility where these constraints limit ecological enhancement. Early engagement with biodiversity unit providers can also help developers understand the availability of suitable habitat types and the potential impact of spatial risk multipliers. Project teams should allow for biodiversity requirements within programme planning, procurement, land agreements and environmental budgets. For phased projects, biodiversity delivery should be coordinated with construction milestones and the timetable for securing outstanding gains. The objective is not simply to purchase the lowest-cost units but to establish a deliverable biodiversity strategy that meets the statutory requirements and supports the overall project programme. How Can Civity Support NSIP Developers With Off-Site Biodiversity Units? Civity supports developers by helping them identify and obtain suitable off-site biodiversity units using the habitat requirements established by their appointed ecologists. This includes assessing available habitat bank opportunities, considering geographical suitability and responding to changes in unit requirements as infrastructure projects progress through design and consenting. Civity are able to offer long-term reserves on biodiversity units with flexibility in the final payment. This allows for an approximate number of units to be reserved and cited in the Biodiversity Gain Statement, with the final transaction completing once consent is granted and the precise unit number is known. Civity can also offer bespoke land-finding services for units created to order, for instance where rare habitat types are needed and an appropriate offsite solution is not readily available on the market. For Nationally Significant Infrastructure Projects, the scale and complexity of biodiversity requirements can make off-site procurement an important part of the overall environmental strategy. Developers may require multiple habitat types across different locations, with the suitability of individual units affected by trading rules and spatial risk multipliers. Civity works with landowners to establish habitat banks and generate biodiversity units through ecological enhancement projects. Our ecologists assess landowner sites to identify habitat creation and enhancement opportunities, while our developer-facing services focus on matching available units with the requirements identified in completed biodiversity metric calculations. We can provide quotations for suitable units and review options as project requirements change. This flexibility can be valuable for major infrastructure projects where design changes, updated ecological information or revised construction plans affect the final biodiversity requirement. By considering off-site biodiversity delivery early, developers can gain a clearer understanding of available options before their DCO application is finalised. Prepare for Mandatory BNG Requirements With Civity The introduction of mandatory Biodiversity Net Gain for Nationally Significant Infrastructure Projects represents an important change to infrastructure planning in England. Since 2 November 2026, qualifying NSIP developers have been required to demonstrate how their projects will deliver at least a 10% increase in biodiversity value through the Development Consent Order process. This includes preparing an outline Biodiversity Gain Plan, calculating habitat impacts using the statutory biodiversity metric and establishing a credible strategy for securing and maintaining the necessary biodiversity improvements. For projects where on-site delivery cannot meet the full requirement, off-site biodiversity units offer a practical route to achieving the statutory objective. However, habitat availability, trading rules, spatial risk multipliers and long-term legal arrangements must all be considered before selecting suitable units. At Civity, we help developers explore off-site BNG options that align with their ecological requirements and project needs. Whether you are preparing an outline Biodiversity Gain Plan, investigating habitat bank availability or reviewing your project’s off-site unit requirements, early engagement can help identify suitable opportunities and support a more informed procurement strategy. Contact Civity to discuss your project’s Biodiversity Net Gain requirements and explore available off-site biodiversity units.



