NAVIGATINGECOSYSTEM SERVICES

Whilst the knowledge that the natural environment provides us with services, including food, fuel, and shelter, has long been understood; recently the concepts of natural capital and ecosystem services have gathered momentum to value these various benefits. An ecosystem service is any positive benefit that we derive from natural capital, with examples including both biodiversity and carbon sequestration, but also access to green spaces and cultural connection. We can divide ecosystem services into different categories, such as provisioning, regulating and cultural.

The markets for ecosystem services in the regulating category is what is currently creating buzz. The markets for regulating services are all gathering pace at different speeds with carbon sequestration arguably the furthest along. However, from November 2023 it will be mandatory for developers to demonstrate a minimum 10% net gain on biodiversity. In practice, this means that where development destroys biodiversity (measured through habitats), it must be replaced, plus an extra 10% –known as Biodiversity Net Gain (BNG). The Environment Act 2021 sets out a mitigation hierarchy, which means creating BNG units onsite is the preference. However, BNG can also be delivered off-site, and it is this which is providing a market for habitat creation and enhancement.

Ceres Property is a market leader in Biodiversity Net Gain, and through our involvement on Natural England’s BNG Market Advisory Board, we anticipate that the market for BNG units will be via national marketing and localised private deals.

This month, we are launching a new marketing platform on the Ceres Property website to connect developers looking for units with landowners willing to provide them.

If BNG is something you are considering as a way to diversify your rural business, Ceres Property is able to undertake an initial assessment for free using Defra’s Future Farm Resilience Fund. Register your interest online here