Embedded into the Biodiversity Net Gain framework are the trading rules, which are designed to compensate for habitat losses. The rules are based on habitat types and distinctiveness to ensure that the relative value of existing biodiversity is at minimum maintained after development.
Baseline habitat distinctiveness | Area habitats | Hedges | Watercourses |
Very high | Priority should be given to replacing with the same habitat | Losses must be replaced with the same habitat | Priority should be given to replacing with the same habitat |
High | Losses must be replaced with the same habitat | Losses must be replaced with the same habitat | Losses must be replaced with the same habitat |
Medium | Losses must be replaced with a habitat of the same distinctiveness and the same habitat type (e.g., grassland) or a habitat of higher distinctiveness | Losses must be replaced with a habitat of the same or higher distinctiveness | Losses must be replaced with the same habitat |
Low | Losses must be replaced with a habitat of the same or higher distinctiveness | Losses must be replaced with a habitat of the same or higher distinctiveness | Losses must be replaced with the same habitat |
Very low | Not applicable | Losses must be replaced with a habitat of the same or higher distinctiveness | Not applicable |
The trading rules apply to both created and enhanced habitats. In the beta version of the Biodiversity Net Gain tool, the trading rules for enhanced habitats are managed by the tool. When adding a habitat to the enhanced question, both the target habitat and target condition fields will be filtered so that only choices which satisfy the trading rules can be selected.
When creating habitats, the trading rules must be followed by the user by taking into consideration the distinctiveness of any baseline habitats that are lost, and the distinctiveness of newly created habitats. The distinctiveness value of habitats can be seen under the Environmental profile in the habitat data card.
Trading rules only apply up to the point of no net loss. For example, if a project loses 1 habitat unit from a grassland of high distinctiveness, then 1 habitat unit must be generated from either creation or enhancement of the same habitat. If this is done, any further creation or enhancement towards net gain can come from creation or enhancement of different habitats, provided that you do not mix between area habitats, hedges, and watercourses.
For habitats with very high distinctiveness (value of 8), any losses should be discussed with the relevant planning authority. While priority should be given to replacing losses with the same habitat, this may not always be feasible. These habitats are usually highly threatened and internationally scarce, and consequently may be very challenging to create or enhance other habitats into. Bespoke compensation may be possible by replacing losses with other very high or high distinctiveness habitats if they are locally significant.
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