MPs Warn Regulatory Interventions Are Essential to Meet UK Biodiversity Targets

The UK's ambitious target to safeguard 30% of its land for nature by 2030 is increasingly at risk, according to a new report from the Environmental Audit Committee (EAC). Meeting this goal seems unlikely without a firm government commitment to Biodiversity Net Gain (BNG) and a significant uptick in private investment. Under the Kunming-Montreal Global Biodiversity Framework (GBF), the UK is legally bound to protect at least 30% of land and sea, tackle pollution, and ensure the sustainable trade of wild species. Yet, current efforts are falling short.

Currently, just 9.7% of England's seas are effectively protected for nature, while protected land stands at a mere 3%. With this gap widening, the EAC warns that the government's existing policies are not aligned with the scale of environmental investment required to hit these targets.

The committee's report highlights the ongoing tension between new housing and infrastructure plans and the necessary environmental protections. Without a balanced approach, it says, the UK will fail to reverse the current trajectory of biodiversity loss.

BNG, which mandates developers to achieve a 10% net gain in biodiversity for planning approval, has become a cornerstone of the UK’s environmental strategy. However, despite progress, BNG remains far from achieving its full potential. Developers can meet the net gain requirement through onsite improvements, offsite restoration, or purchasing biodiversity credits. So far, BNG has restored 93 hectares of habitat onsite and 609 hectares offsite. However, 789 hectares of offsite projects remain stalled, awaiting government approval.

These efforts fall dramatically short of the 5,428 hectares the Department for Environment, Food and Rural Affairs (Defra) had initially anticipated. The EAC report urges ministers to solidify their support for BNG amidst concerns that a proposed Nature Restoration Fund could divert focus from this vital scheme.

Without clear backing for BNG, the committee fears private investment in environmental projects will dwindle, stalling progress even further. It calls for establishing a transparent register detailing BNG sites and project partners, and advocates for combining BNG efforts to unlock larger-scale investments.

In 2021, the UK government set an ambitious target of securing £1bn in private investment for nature recovery by 2030. However, the EAC found no precise mechanism to track this progress. It urges ministers to report to Parliament within the next 12 months on current and projected investment levels.

The committee points to two main factors for the shortfall: the central government's reluctance to allow local authorities to set BNG targets above the minimum 10% threshold and a lack of funding for local councils to effectively support planning and enforcement. Moreover, funding cuts to Defra’s supporting bodies have only added to the challenge.

The EAC recommends that the government incorporate natural capital accounting into all decision-making processes. It calls for the following Spending Review to demonstrate how natural capital considerations will influence funding allocations and help bolster the UK’s natural capital stock. The Corry Review of environmental regulation has also raised concerns regarding BNG, suggesting 29 changes, including reevaluating how funds from biodiversity credit purchases and government support are distributed. This flexibility could be key in helping local authorities meet targets under the Environmental Improvement Plan (EIP).

The report also highlights the critical need to assess how the proposed Nature Restoration Fund—an element of the Planning and Infrastructure Bill—could impact private investment in BNG. The EAC urges the government to publish its responses to consultations on natural capital markets as soon as possible.

Last year, research warned that continued ecosystem degradation could slash the UK’s GDP by 12%, a blow worse than the 2008 financial crisis or the COVID-19 pandemic. With such dire implications, decisive action is now, before it’s too late.