The potential for private investment in Biodiversity Net Gain and its ability to deliver on Local Nature Recovery Strategies

Supervisors:

• Professor Stephen Willis (Durham University)
• Dr Katherine Simpson (University of Glasgow)
• Jim Cokill (Durham Wildlife Trust)
• Stuart Priestly (Durham County Council)
• Dr Tom Smart (Natural England)

Project Summary:

Biodiversity Net Gain (BNG) in England, aims to compensate for biodiversity lost to development by replacing equivalent biodiversity, plus a 10% uplift. To implement BNG, DEFRA anticipates the emergence of a market for biodiversity units, enabling developers to purchase units as part of the planning process. The policy envisions that private markets will meet much of this demand, with Natural England a broker of last resort for biodiversity credits.

To achieve the biodiversity gains promised by BNG, more landholders require incentivize to participate. In economic terms, increased participation enables “thicker” markets, characterized by greater transaction volume, price transparency, and market stability, which can enhance confidence among participants. From an ecological perspective, isolated offset projects often have higher failure risk compared to those integrated into larger initiatives (e.g., ecosystem-based conservation banks, regional conservation plans). A robust market with broader landholder involvement is more likely to support integrated conservation strategies, thereby delivering biodiversity outcomes.

• Objective 1 of this PhD explores the potential for private biodiversity credit providers to enter the BNG market, and assesses their associated risks and financial models to manage BNG land, given different potential BNG unit trading values. We will work through such scenarios using Durham Wildlife Trust (DWT; CASE partner) as an example private BNG provider and assess the potential for BNG to cover the costs of purchasing and managing new land, and enhancing current land, for biodiversity.
• Objective 2 of the PhD evaluates the extent to which BNG has the potential to deliver Local Nature Recovery Strategies (LNRS) across England, despite BNG units being assessed using only basic habitat metrics. We will explore, using recent ecological and economic data, the extent to which BNG risks delivering excess of the ‘cheapest’ habitats, and hence a surfeit of some habitats, without achieving wider conservation benefits. Across pilot sites, BNG enhanced plant but not bird or butterfly biodiversity. Here, we will explore (via monitoring) the extent to which BNG is delivering equivalent or enhanced biodiversity across newly designated sites (and using similarly created/managed habitats as longer-term proxies). We will further explore the ability for BNG to deliver on LNRS goals, using County Durham as a case study LNRS region, liaising with Durham County Council (DCC) LRNS team. We will also explore the potential, and cost implications, for site managers to target local biodiversity, rather than solely delivering the more generic objectives.

To apply visit: https://netgain.wp.st-andrews.ac.uk/phd-projects/

Student Profile:

We seek a student with high motivation to inform and enhance UK biodiversity conservation. The project requires someone who is keen to undertake both field-based research and ecological and economic modelling, working closely with conservation stakeholders. The project requires liaising with NGO, government and government advisory organisations, so is a fantastic opportunity to develop skills working across disciplines and organisations. Desirable skills for the PhD include an understanding of UK ecology and ecosystems, ecological monitoring (including automated monitoring), and conservation management. Knowledge of biodiversity net gain, local nature recovery strategy policy and economic modelling would be beneficial but not essential. The student will be trained in all required skills, including modelling and analysis, whilst also being trained, as part of the NETGAIN cohort, in skills of broader relevance to biodiversity and nature markets.

We are seeking high-calibre applicants with an excellent first degree and excellent written and verbal communications skills, with an ability to work independently but also as part of a team. The project will teach many cross-disciplinary skills, so will be ideal for someone wishing to continue in research in this emerging field or to work in one of the many organisations seeking ecologists trained in cross-disciplinary research.