England’s fast-growing market for biodiversity offsets could help deliver nearly a fifth of the government’s legally binding 2042 nature recovery target at no cost to the public purse, according to new research by conservation company Nattergal.
The so-called offsite biodiversity net gain (BNG) market could help protect more than 80,000 hectares of natural habitat—equivalent to an area the size of Greater London—thereby contributing to the government’s pledge to restore or create 500,000 hectares of wildlife-rich habitat across England by 2042.
The findings arrive as England remains significantly off track on its broader biodiversity commitments, with just 2.8% of land currently considered effectively protected for nature.
The BNG approach is a policy requirement introduced under England’s planning rules that obligates developers to deliver at least a 10% net improvement in biodiversity on any new development.
Where that cannot be achieved onsite, developers may purchase habitat units from providers who restore land elsewhere, creating a market that is entirely privately funded and driven by developer demand rather than public subsidy.
According to Nattergal’s analysis, the offsite BNG market has grown from a single 32-hectare (79-acre) site in February 2024 to 215 sites totaling 7,410 hectares (18,310 acres) by January 2026.
This rapid expansion is expected to continue, and industry estimates put the value of England’s BNG market at close to £3 billion (roughly $4 billion) by 2035.
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The sector’s growth potential is expected to rise further when BNG obligations are extended to Nationally Significant Infrastructure Projects in November, a step that could unlock more than £430 million (just under $580 million) in wider benefits over a decade, including flood risk reduction and improved air quality.
“Two years ago, this market did not exist,” said Archie Struthers, Nattergal’s chief executive. “Today, it is restoring the equivalent of the Lake District in natural habitat — without a penny of public money.”
The analysis also notes that a government rollback in December, exempting sites smaller than 0.2 hectares (0.49 acres) from BNG rules and removing roughly half of all residential applications from the policy’s scope, has so far failed to derail the market’s trajectory.
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