The BNG Nightmare Scenario: Why It's Real, Not Alarmist
Some people have suggested our warnings about a "BNG nightmare scenario" are alarmist. But this concern stems from real commercial risks we've observed while helping developers navigate the new Biodiversity Net Gain requirements.
So what exactly is this nightmare?
Simply put, it's buying the wrong biodiversity units and being unable to get your money back.
The financial impact is relative but significant for any developer. Whether you're a large developer who's spent £200,000 on a million-pound unit deal, or a small developer losing £5,000, having to tell your boss "you bought the wrong thing and can't get your money back" is genuinely a nightmare scenario.
But how could this happen?
The commercial reality of BNG is far more complex than the theoretical process suggests.
Even with an approved Biodiversity Gain Plan, several things can go wrong:
Ecology reports containing errors in the DEFRA metric
Habitat bank types that don't meet trading rules
Local Planning Authorities with strict internal policies rejecting units from outside their area
Conflicts with the BNG hierarchy
The crux of the problem lies in timing and transactions. Once you've purchased units, they're taken off the register and assigned your reference code. If the LPA then rejects them, you're caught between an unhelpful authority and a habitat bank that's already completed the deal and has no obligation to refund you.
How can developers avoid this nightmare?
Ensure everything you're providing is thoroughly checked
Make sure your provider is giving you the right units
Don't put down too much money at the wrong phase
Perhaps most critically, work with the LPA to confirm your solution before paying 100%
This may sound cautious rather than alarmist, but we've seen these situations develop. Our mission is to give you "BNG Certainty" - helping you navigate these complexities so you don't face unpleasant surprises that could derail your project and budget.
The BNG legislation is still new, and many parties are learning as they go. Taking proper precautions isn't alarmist - it's good business practice when dealing with significant financial commitments in an evolving regulatory landscape.
Watch the full interview here:
Did you know that every 90 days we do a review of the pricing of BNG across England?
Get the latest copy: click here