This briefing is a legal overview of the potential impact of the biodiversity net gain (BNG) requirement introduced by the United Kingdom government’s Environment Act 2021 on the cost management of a major or minor development project. This BNG requirement aims to protect the environment from the negative impacts of construction processes and activities. It relates to the United Kingdom government’s overarching goal to embed a broad ‘environmental net gain’ principle in the planning system, as per the United Kingdom government’s refreshed 25-year Plan of February 2023. The paper provides an overview of when BNG is required, how to provide it, its duration, the metrics require for assessments, and the exemptions for providing such as requirement as well as the BNG plan approval process. It refers to government guidance and to recent developments since the inception of the new United Kingdom government in July 2024. The overall result of implementing this new requirement is that there are added costs to factor into the planning of a project, more scrutiny from relevant planning authorities, and potentially more uncertainty about the cost management of relevant projects, due to many factors.
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