Study Finds UK’s Biodiversity Net Gain Scheme Could Unlock £3bn Market by 2035

The UK’s market for mandated Biodiversity Net Gain credits is set to reach a projected £3 billion by 2035, according to a new study. This growth is based on the current number of habitat banks already operating, as well as many more that are in the pipeline.

Biodiversity Net Gain, known as BNG, is a legally binding environmental policy introduced in 2024. It requires real estate developers and local planning authorities to offset any biodiversity loss caused by new projects actively. They can do this through on-site improvements or, more commonly, through off-site investments in nature restoration, by purchasing biodiversity credits.

These credits are sold by landowners and land managers who are restoring and enhancing biodiversity on their land. According to Biodiversity Units UK, a marketplace facilitating these transactions, more than 21,000 acres across England have already been designated for biodiversity unit creation within the first 15 months of the scheme. There are currently 33 habitat bank businesses operating in the UK.

These include large national players such as the Environment Bank and The Wildlife Trusts, alongside smaller, family-owned operations. Together, they manage 93 active habitat banks across the nation.

And this is only the beginning. An additional 154 habitat banks are currently under development. Biodiversity Units UK forecasts that by 2030, these banks will generate over 41,000 biodiversity credits, with a further 50,000 expected between 2030 and 2035.

With each biodiversity credit valued at a minimum of £42,000, the total market size could exceed £3 billion by the time 2035 arrives. Demand is expected to keep pace, with habitat bank operators predicting a steady rise over the next decade. Private investment in the sector has already grown significantly, climbing from £200 million in 2021 to an estimated £324.7 million in 2025.

Habitat bank operators were also asked about their financial outlook. On average, they rated the viability of habitat banking as 7.5 out of 10, a strong signal that the business model is gaining credibility and momentum.

Farmers, in particular, are well-positioned to benefit from the scheme. By participating in habitat banking, they gain an opportunity to diversify their income through environmental stewardship. For many, this is the missing piece in creating a more sustainable and economically viable food system.

As the market matures, BNG is poised to become a cornerstone of the UK's green economy, offering a rare example of policy, profit, and planet aligning in a mutually reinforcing way.