What does the BNG consultation mean for farmers?
The Government’s recent Biodiversity Net Gain (BNG) consultation response has confirmed that BNG will now be introduced to Nationally Significant Infrastructure Projects (NSIPs) from the 2nd of November 2026, as well as clarifying essential regulatory framework changes providing significant new opportunities for farmers and landowners in England.
Why is the BNG consultation response important for farmers?
In the two years since BNG policy was first introduced, creating Habitat Banks has become an effective way for farmers and landowners to profit from marginal land and diversify their income streams.
Before the publication of the BNG consultation response, there was some uncertainty around legislation and when NSIPs would be required to deliver BNG.
The recent consultation response has not only confirmed that BNG will be introduced to NSIPs in November 2026, but it has also clarified essential aspects of the policy – providing more stability and a wider range of benefits for farmers and landowners.
Policy changes now confirmed will now create a huge surge in demand for off-site Biodiversity Units – making habitat banking an exciting new market opportunity for farmers who are looking for secure diversification options.
What did the consultation response say?
BNG for NSIPs
The introduction of BNG to NSIPs in November 2026 is a significant milestone. NSIPs are large-scale developments that often have complex BNG needs due to long-term planning stages and development that often spans across wide geographic regions.
The notable size of these projects means that they will have larger off-site BNG requirements, with the annual off-site BNG demand from NSIPs projected to fall between 3,000-5,000 Biodiversity Units over the next five years. BNG for NSIPs affects farmers and landowners by creating a significant rise in demand, leading to a high number of Biodiversity Units sourced from BNG Habitat Banks like ours.
It has been confirmed that NSIPs will be able to deliver BNG off-site in the first instance – unlike smaller developments that have to pursue on-site habitat restoration first before choosing off-site options. This will further increase the demand for off-site Biodiversity Units from BNG Habitat Banks as delivering BNG away from the development site itself is often the most efficient option, creating more diversification opportunities for farmers and adding even more security to their income streams.
Geographical changes
The BNG consultation response has also added a lot more flexibility to policy – benefitting both developers and landowners. The spatial risk of BNG will undergo a drastic shift, no longer assessed by local planning authority (LPA) areas and National Character Areas (NCAs) but instead by Local Nature Recovery Strategy (LNRS) areas. As there are far fewer LNRS areas compared to LPAs and NCAs, this means that Habitat Banks will become local options for developments in a far larger geographic region.
This is clearly a huge step forward for farmers and landowners who are considering creating a Habitat Bank. The added certainty, demand, and flexibility that the Government’s consultation response is bringing to BNG policy only provides more demand.
Why is this good for farmers?
The Government’s BNG consultation response clearly indicates that creating Habitat Banks is an exciting and lucrative market opportunity in 2026 for farmers and landowners in England – and Environment Bank are here to support you every step of the way.
As the leading BNG provider with a national network of almost fifty Habitat Banks, we have a robust route to market, including longstanding relationships with many NSIP developers. We are primed to start supplying these major projects with off-site Biodiversity Units. Furthermore, the geographical changes now mean that the land requirements for BNG Habitat Banks have shifted, providing new opportunities for farmers and landowners who may previously have been unable to benefit from the policy due to a prior lack of demand for Biodiversity Units.
Are you in a new demand area for a BNG Habitat Bank?
As a result of the consultation, our requirements for land and where we need it have dramatically changed. To find out if this is an opportunity for you through a lease or purchase agreement, please complete our land registry form linked below, which will allow us to complete a desk-top review of your land and let you know your options. This is no-cost and absolutely obligation-free.