Source · Select Committees · Environmental Audit Committee
Recommendation 20
20
Acknowledged
Regulatory clarity and confidence drive demand and investment in nature markets
Conclusion
Compliance, or an expectation of compliance with a future regulation, is a significant driver of demand for nature markets. Clarity and investor confidence in regulatory rules and functions is essential to maintaining stable demand and driving opportunities for investment. (Conclusion, Paragraph 121)
Government Response Summary
The government reiterates its support for BNG policy, noting two recent consultations aimed at improving and extending its application to ensure development leaves biodiversity in a better state.
Government Response
Acknowledged
HM Government
Acknowledged
The government continues to support BNG policy. We have recently launched two BNG consultations. The first is on applying BNG to NSIPs. The development of high-quality nature- positive infrastructure will support the Government’s mission of achieving sustainable economic growth to improve the prosperity of our country. BNG will be introduced for NSIPs from May 2026, and this consultation is seeking views on how BNG should be applied to NSIPs. The second consultation is on improving BNG for minor and brownfield development. This consultation is focused mainly on SME developers. It includes options around extending exemptions, simplifying the small sites metric and increasing ease of access to the off-site market to make it easier, quicker and cheaper for SME developers to deliver their BNG requirements. It also addresses specific challenges for brownfield developments. The government is committed to delivering sustained economic growth, as set out in our Plan for Change, and to building 1.5 million homes by the end of this Parliament. At the same time, we are committed to halting and reversing the decline of nature. BNG provides a clear framework to ensure development leaves biodiversity in a measurably better state, delivering health and wellbeing benefits to local communities, providing wider benefits for climate change adaptation and mitigation and contributing to our legally binding Environment Act 2021 targets for biodiversity.