In a hard-hitting report, the cross-party Environmental Audit Committee (EAC) calls for a renewed government commitment to Biodiversity Net Gain (BNG) — a policy that requires developers to deliver at least a 10% boost in biodiversity when building new housing or infrastructure.
The warning comes amid growing concern that ministers are wavering on BNG, with recent proposals for a centrally managed Nature Restoration Fund raising fears of confusion and investor pullback.
The Committee says BNG must be protected to maintain momentum in emerging nature markets and to reverse the UK’s status as one of the world’s most nature-depleted nations.
MPs say BNG can work — but only if government backs it.
The report urges ministers to publicly restate their support and strengthen the framework by allowing developers to pool projects to attract large-scale investment.
More widely, the EAC says the government must show that natural capital thinking is embedded in its economic decision-making.
That includes using the upcoming Spending Review to outline how funding choices are boosting natural capital — the UK’s stock of soil, air, water and living organisms.
The Committee calls for an annual progress review of BNG, with a national, publicly available register of where projects are located and who is investing. It also says ringfenced revenue from BNG credits must be clearly accounted for and transparently spent.
Environmental Audit Committee Chair, Toby Perkins MP, said:
“No ifs, no buts: we need Ministers to facilitate private investment by setting out a clear commitment to the Biodiversity Net Gain policy. Speculation that it might be ditched in favour of a broad-brush approach to state funding of nature restoration at scale, risks undermining market confidence and further depleting nature in some communities.”
Also the MPs say the government has no clear way of tracking progress towards its target of £1 billion in private nature investment by 2030.
They want a detailed report to Parliament within 12 months on current and forecasted investment levels.
A full assessment is also needed of how the proposed Nature Restoration Fund, set out in the Planning and Infrastructure Bill, could impact private investment flows.
