On 27th July 2023, the UK government announced the pricing of biodiversity credits. The prices are an important indication of how Biodiversity Net Gain will take centre stage for larger developments from November 2023.

Be sure not to head over to the government page and look at the pricing tables only, and overlook this ultra important line that is included on the page.

“You must buy 2 credits for every 1 biodiversity unit you need to compensate for.”

This might come as a shock. However, it is very logical as it takes into account the fact that the credits could be spent anywhere in the country, so it gives the same spatial multiplier as offsite compensation beyond the neighbouring LPA.

About Statutory Biodiversity Credit Prices

Buying statutory biodiversity credits is a last resort option for developers if you are unable to use on-site or off-site units to deliver biodiversity net gain (BNG).

You will be able to buy statutory biodiversity credits using a credit sales service, which will be available once BNG becomes mandatory.

These prices are indicative, which means they give an indication of likely prices, to help developers plan ahead. We will publish confirmed prices when biodiversity net gain becomes mandatory.

All prices are exclusive of VAT. VAT will be included in the invoice for any statutory credit purchase.

Using the statutory biodiversity metric to calculate biodiversity credits

To support you with calculating how many credits you need, we are working on an addition to the biodiversity metric. This will be available in the statutory biodiversity metric tool, when BNG becomes mandatory.

If you buy statutory biodiversity credits, a ‘spatial risk multiplier’ will apply, which doubles the amount of credits you need. You must buy 2 credits for every 1 biodiversity unit you need to compensate for. The statutory biodiversity metric will automatically calculate this multiplication for you.

You can find more information about the spatial risk multiplier in the Biodiversity Metric 4.0 user guide, section 7.4 (page 29).

Information about terms in the table

For each habitat type in the table below, you can see its ‘tier’. Biodiversity credit prices are tiered, to reflect the cost and value of different habitats. When you access the credit sales service, you’ll have to pick which tier or tiers you are buying.

The prices in the table are per credit. The spatial risk multiplier is not accounted for in the prices in the table.

‘Distinctiveness’ is a measure based on the type of habitat and its distinguishing features. It measures different ecological factors, such as:

• the rarity of the habitat
• species richness within a habitat

Area habitats

Low distinctiveness habitats

Habitat distinctiveness	Broad habitat type	Specific habitat type	Price per credit	Tier
Low	All	All	£42,000	A1

Medium distinctiveness habitats

Habitat distinctiveness	Broad habitat type	Specific habitat type	Price per credit	Tier
Medium	Heathland and shrub	All	£42,000	A1
Medium	Grassland	All	£42,000	A1
Medium	Individual trees	All	£42,000	A1
Medium	Urban	All	£42,000	A1
Medium	Cropland	All	£42,000	A1
Medium	Woodland and forest	All	£48,000	A2
Medium	Intertidal sediment	All	£48,000	A2
Medium	Lakes	Reservoirs	£125,000	A4
Medium	Lakes – ponds (non-priority habitat)	Ponds	£125,000	A4
Medium	Sparsely vegetated land	Other inland rock and scree	£125,000	A4

High distinctiveness habitats

Habitat distinctiveness	Broad habitat type	Specific habitat type	Price per credit	Tier
High	Wetland	Reedbeds	£42,000	A1
High	Grassland	Traditional orchards	£42,000	A1
High	Grassland	Lowland calcareous grassland	£48,000	A2
High	Grassland	Tall herb communities (H6430)	£48,000	A2
High	Grassland	Upland calcareous grassland	£48,000	A2
High	Heathland and shrub	Dunes with sea buckthorn	£48,000	A2
High	Heathland and shrub	Lowland heathland	£48,000	A2
High	Heathland and shrub	Upland heathland	£48,000	A2
High	Urban	Open mosaic habitats on previously developed land	£48,000	A2
High	Woodland and forest	Wet woodland	£66,000	A3
High	Woodland and forest	Felled	£66,000	A3
High	Woodland and forest	Upland birchwoods	£66,000	A3
High	Intertidal sediment	Littoral mud	£66,000	A3
High	Intertidal sediment	Littoral mixed sediments	£66,000	A3
High	Intertidal sediment	Littoral – biogenic reefs – mussels	£66,000	A3
High	Intertidal sediment	Littoral biogenic reefs – Sabellaria	£66,000	A3
High	Intertidal sediment	Features of littoral sediment	£66,000	A3
High	Intertidal sediment	Littoral muddy sand	£66,000	A3
High	Wetland mosaic	Floodplain wetland mosaic (CFGM)	£125,000	A4
High	Ponds	Ponds (priority habitat)	£125,000	A4
High	Ponds	Temporary lakes, ponds and pools	£125,000	A4
High	Coastal lagoons	Coastal lagoons	£125,000	A4
High	Rocky shore	High energy littoral rock	£125,000	A4
High	Rocky shore	Moderate energy littoral rock	£125,000	A4
High	Rocky shore	Low energy littoral rock	£125,000	A4
High	Rocky shore	Features of littoral rock	£125,000	A4
High	Coastal saltmarsh	Saltmarshes and saline reedbeds	£125,000	A4
High	Intertidal sediment	Littoral seagrass	£125,000	A4
High	Sparsely vegetated land	Coastal sand dunes	£125,000	A4
High	Sparsely vegetated land	Coastal vegetated shingle	£125,000	A4
High	Sparsely vegetated land	Maritime cliff and slopes	£125,000	A4
High	Sparsely vegetated land	Inland rock outcrop and scree habitats	£125,000	A4
High	Woodland and forest	Upland mixed ashwoods	£125,000	A4
High	Woodland and forest	Native pine woodlands	£125,000	A4
High	Woodland and forest	Lowland mixed deciduous woodland	£125,000	A4
High	Woodland and forest	Lowland beech and yew woodland	£125,000	A4
High	Woodland and forest	Upland oakwood	£125,000	A4
High	Lakes	High alkalinity lakes	£650,000	A5
High	Lakes	Low alkalinity lakes	£650,000	A5
High	Lakes	Marl lakes	£650,000	A5
High	Lakes	Moderate alkalinity lakes	£650,000	A5
High	Lakes	Peat lakes	£650,000	A5

Linear habitats

Hedgerow

Habitat distinctiveness	Broad habitat type	Specific habitat type	Price per credit	Tier
Various	Hedgerow	All	£44,000	H

Watercourses

Habitat distinctiveness	Broad habitat type	Specific habitat type	Price per credit	Tier
Various	Rivers	All	£230,000	W
Various	Rivers and streams	All	£230,000	W

Read more about Statutory biodiversity credit prices here.

Beyond Biodiversity Net Gain Online Training

This news came in as we were recording with multi-award winning ecologist, Claire Wansbury and top environmental lawyer, Ben Stansfield for the Beyond Biodiversity Net Gain Online Training

To listen to an episode that focuses on this series, go to – S2, E12: Claire Wansbury Beyond Biodiversity Net Gain Training

 

Later on 27th July 2023, the Conservation Covenants Criteria were announced.