Source · Select Committees · Environmental Audit Committee
Recommendation 19
19
Deferred
Publish urgent plans for investing revenues from BNG credit sales
Recommendation
We are concerned to note that the Government has not yet published full details of its approach to the investment of revenues from the sale of BNG credits. The Government must demonstrate that it is committed to this approach to nature renewal, rather than treating it as another source of revenue to the Exchequer. We recommend that Ministers publish as soon as possible their plans for the use of such revenues as remain after the costs of administering the credit sale scheme have been met. (Recommendation, Paragraph 93) Market demand
Government Response Summary
The government states it is legally obligated to spend BNG credit income on habitat projects and is working to design a transparent allocation method, with more details to be announced in due course.
Government Response
Deferred
HM Government
Deferred
In March 2025 we published our first annual BNG statutory credits report setting out the revenue received through the sale of credits. Demand for credits has been relatively low, reflecting the early stages of the policy’s implementation and the fact that BNG incentivises developers to follow the mitigation hierarchy, prioritising onsite delivery of BNG and purchase of local biodiversity units. Statutory credits are a last resort by design. Government is legally obligated under the Environment Act 2021 to spend income from credits sales on habitat creation or enhancement projects (or administration of the sales service). Government is working to design a transparent method for allocating income which will support the growth of the private units market and we will announce more details in due course.