The government has outlined its plans for how developers can mitigate their impact on the environment as part of sweeping reforms to the planning sector, with landowners potentially in a position to benefit if they are keen to diversify.
Harvey Davies, Environmental Consultant in the Thrings Planning and Environment Team, takes a look at the potential opportunities and challenges that the Nature Restoration Fund presents, and the key considerations that landowners must carefully navigate.
What is the Nature Restoration Fund?
Outlined in the government’s recently unveiled Planning and Infrastructure Bill, the fund would be created by the pooling of developer contributions and would be used to fund larger environmental interventions and mitigations, helping housebuilders to better meet their environmental obligations.
The shift away from the traditional case-by-case environmental assessments required for individual development projects makes way for a more coordinated approach with a delivery plan outlining the necessary environmental interventions for a given region.
This new model could allow landowners to participate in efforts to restore and protect biodiversity, manage habitats, and address issues like nutrient pollution, offering their land as part of a broader strategy for environmental recovery, receiving financial compensation for the role they play in mitigating environmental impacts caused by development.
Potential opportunities
For landowners, particularly those with larger estates, the government’s Nature Restoration Fund could present several exciting opportunities:
- New revenue streams: As part of the proposed framework, landowners could be invited to offer their land for environmental interventions, such as habitat restoration or the creation of wildlife corridors, which could be funded through the Nature Restoration Fund.
- Recreational access and SANG (Suitable alternative natural green space): The government has referenced the use of SANG as a strategic approach to mitigate the recreational impacts of development on protected sites. Landowners could potentially be paid to provide public access to land for recreational purposes, which could help alleviate pressure on nearby protected areas while generating income.
- Compensation for environmental stewardship: The Nature Restoration Fund could provide compensation for landowners who engage in environmental stewardship practices such as restoring degraded habitats, planting trees, or managing wetlands.
- Private and public collaboration: The government’s policy also highlights the importance of working with private landowners and land managers to secure environmental outcomes. This could open the door to more collaborative efforts between landowners, public bodies, and conservation organisations, as well as the opportunity to generate the likes of carbon and biodiversity net gain credits.
- Long-term land management opportunities: For those looking to make long-term decisions about their estate’s future, the Nature Restoration Fund could create opportunities for a more sustainable, nature-focused approach to land management. Landowners could explore new land use models that balance profitability with environmental responsibility, ensuring that their estates remain productive and ecologically beneficial for years to come.
The challenges and considerations
As well as opportunities, the proposals also bring some challenges and risks that landowners will need to consider:
- Regulatory complexity: The shift from individual, project-specific environmental assessments to a more centralised framework could create regulatory complexity for landowners. Understanding the new rules and navigating the delivery body’s requirements will be essential with landowners needing to stay aware about any changes to legislation or regulations.
- Long-term commitment: Participating in nature restoration initiatives will be long-term commitments which could potentially impact traditional farming activities across multiple generations.
- Uncertainty around financial returns: While the Nature Restoration Fund could provide new revenue streams, there is still a degree of uncertainty around the financial returns that landowners can expect. The government’s proposals include payments for environmental interventions, but the exact details of these payments and how they will be distributed are still to be confirmed.
- Compulsory purchase powers: The proposals suggest that delivery bodies could have the power to acquire land, including through compulsory purchase, to secure the necessary environmental interventions. While this power is likely to be used sparingly, it introduces an element of risk for landowners who may be impacted by such decisions.
- Market competition: The government’s desire to encourage competition in securing environmental outcomes could lead to a situation where landowners face competition for funding from multiple sources. While this could drive innovation, it could also make it more difficult for individual landowners to secure the financial support they need for their nature restoration projects.
Preparing for the future
For landowners seeking to diversify their estates, the Nature Restoration Fund presents a promising new avenue. But like all new opportunities, it will require careful consideration, planning, and a willingness to adapt to the evolving landscape of environmental policy and funding.
Navigating the potential complexities of the new regulatory framework, understanding the financial implications, and ensuring long-term sustainability will require careful planning and it is recommended to seek legal advice early on.
Thrings’ Planning and Environment lawyers have extensive experience in navigating complex local and national planning policy legislation and has successfully supported commercial and residential clients to optimise the use of their land to generate innovative new long-term revenue streams through the creation of natural capital projects and other diversification initiatives To find out more and for advice on your development proposals, please get in touch.