Biodiversity remains a critical focus on the sustainability agenda, especially in the UK, one of the most nature-depleted countries in the world. This month, the UK government launched an ambitious initiative centred around biodiversity net gain (BNG) to mitigate ongoing habitat loss. BNG uses a metric to determine a biodiversity value ‘before’ and ‘after’ development. The BNG is the net value post-development, indicating whether the project has positively or negatively impacted habitats or biodiversity.
Implications for Agriculture: Driving Demand for Biodiversity Markets
Effective February 12th, all new large-scale building projects will be required to achieve a minimum 10% net gain in biodiversity. This bold policy, which is being monitored internationally, is focused on reversing the trends of biodiversity loss and places responsibility on developers.
How does this affect agriculture?
Given the challenge of achieving a 10% increase in biodiversity on-site in many cases, it’s anticipated that much of the restoration will occur through offsets. Consequently, this policy is expected to drive demand for biodiversity markets, which have historically seen limited interest. To date, only $8 million in biodiversity commitments have been reported globally.
Similar to carbon markets, biodiversity markets operate through “biodiversity credits,” where projects enhancing habitats generate tradable credits. With much of this habitat restoration expected to occur on farms, UK agriculture has the opportunity to diversify income streams through this new, albeit unproven, marketplace.
Long-term Commitments and Considerations
Agreements, whether established directly with a developer or through a broker, typically last 30 years, posing the question to farmers about committing their land to an emerging market for such an extended period. Considering the early credit values (up to £25,000-30,000) and the strain on agriculture due to climate and compliance, careful consideration is warranted.
This is especially relevant for farmers with substantial amounts of marginal land who may be exploring government stewardship schemes. Similar to carbon markets, farmers will need to access this opportunity based on their individual circumstances and localised pressures, likely proceeding with caution as the markets evolve and we gain a better understanding of the financial rewards.
Addressing Concerns: Monitoring and Verification
As for the market in question, there are concerns about the monitoring and verification of these traded credits, given the anticipated demand. Without proper tracking of offsets or on-site habitats, this scheme risks exacerbating biodiversity loss and species diversity, as the promised “new habitats” will fail to materialise. Developers and biodiversity traders can address this issue by utilising an MRV (measurement, reporting, verification) solution for ongoing verification, fostering trust within the credit market and among the public.
Senus’s Contribution: Assessing and Monitoring Habitats
As part of our key measures at Senus, we can assess, monitor, and quantify habitats on farms. This classification of land use generated on our GIS platform can be verified in situ by local ecologists, ensuring the trust we strive for among farmers, developers and the supply chain.
While we wait to see how the biodiversity markets and British agriculture react to this new requirement, Senus remains dedicated to empowering farmers and the supply chain to gain a deeper understanding of their natural capital potential. To find out about Senus‘s technology-based approach for measuring hedgerows and various habitats on lands across the UK, contact UK Country Manager, Kevin Fennelly.
