🌍 2025 Projections for Biodiversity Net Gain: What’s on the Horizon? 🌱

As we kick off 2025, the evolution of Biodiversity Net Gain (BNG) will continue to shape the landscape of nature restoration in the UK. Here’s what we expect to see in the coming year:

🔒 Stricter Onsite BNG Rules
As the demand for environmental accountability grows, we anticipate tighter regulations for onsite BNG, bringing them inline with those of the off-site market. Developers can expect greater oversight and will face more rigorous expectations to deliver measurable biodiversity improvements.

💼 Competitor Consolidation
The BNG market will see consolidation among competitors, with larger players emerging as dominant forces. Smaller firms may face challenges meeting the growing complexity and cost of BNG projects, leading to mergers and acquisitions, which will reshape the industry landscape.

🔍 Increased Transparency
Expect greater transparency in BNG pricing and reporting. As the sector matures, stakeholders will demand clearer, more accessible data on biodiversity outcomes and unit pricing. Publicly available, verifiable information will become the norm, strengthening trust and ensuring that promises are backed by action.

📊 HMRC Challenge
With the financial stakes rising, HMRC could challenge the tax treatment of biodiversity credits and incentives tied to BNG projects. We anticipate more clarity on how BNG-related activities will be taxed. As we await outputs from the HMRC and Treasury working group, we expect to see the first challenges to BNG accounting practices in the courts.

🌱 More Local Nature Recovery Strategies (LNRS)
The creation of Local Nature Recovery Strategies will continue to gain momentum, with more LNRS being published in 2025. These strategies will play a crucial role in directing local, landscape-level restoration efforts that align with broader conservation goals, ultimately contributing to national biodiversity targets.

🏛️ Standardisation of Local Planning Authorities’ Approach
As local planning authorities (LPAs) face increased pressure to deliver consistent BNG outcomes, we foresee greater standardisation in their approach to BNG. This will provide developers with more clarity and consistency when navigating the planning process, ensuring that BNG requirements are applied fairly and effectively across regions.

2025 promises to be a pivotal year for Biodiversity Net Gain, bringing both challenges and opportunities for businesses ready to innovate and lead the way. We’re committed to supporting the transition to a nature-positive future and staying ahead of these emerging trends.

Photo credit: Evie Hymas