My Lords, in moving Amendment 194C I shall speak also to Amendments 201AZA, 201AZB, 201AZC and 201AZD, in the name of my noble friend Lady Jones of Whitchurch, and Amendment 196, in the names of my noble friend Lady Jones of Whitchurch, and the noble Baronesses, Lady Parminter and Lady Bennett of Manor Castle, and the noble Lord, Lord Teverson. I also express my support for Amendment 198A, in the name of my noble friend Lady Young of Old Scone.
Clause 92 allows developers to purchase credits from the Secretary of State to satisfy biodiversity obligations imposed as a condition of planning permission. Revenues raised through the purchases are then used to create and improve nature sites. Our Amendment 194C would amend government Amendment 194B, introduced by the Minister, and is designed to enable a discussion around extending the application of biodiversity net gain to major infrastructure, beyond the nationally significant infrastructure regime, thereby including projects consented through hybrid Bills and any future consent mechanisms.
Currently, environmental considerations are too often considered a constraint in the planning system. A fundamental shift is required to enable the planning system to play a fuller part in nature’s recovery, protecting our finest wildlife sites and connecting them into a coherent network. We welcome the planning reforms proposed in Part 6, including the imposition of biodiversity gain as a condition of planning permission and the creation of local nature recovery strategies. Developers, planners and land managers will be mandated to leave biodiversity in a better state than before, and now government Amendment 194B and new Schedule 14A include biodiversity net gain for nationally significant infrastructure projects—NSIPs, as they are known.
Despite the explicit commitment in the 25-year environment plan that net gain would cover both housing and infrastructure, the Government’s amendment does not cover other major infrastructure projects granted outside NSIPs. This would include HS2 and major housing developments. I know the Government have given us assurances about HS2, but this kind of development will not be covered in legislation as it stands, and simple assurances are not good enough, either for this project or for those in the future.
The August 2020 planning White Paper proposed using development consent orders, DCOs, to give permission to large housing developments. It has also been suggested that such housing-focused DCOs could sit outside the NSIP regime, which could mean they are excluded from biodiversity net gain. Our Amendment 194C would extend the proposed legislation, so that the biodiversity net gain principle applies to all major infrastructure projects.
Amendments 201AZC and 201AZD would carry this widened scope through into new Schedule 14A. Amendments 201AZA and 201AZB would ensure that biodiversity net gain applied to non-NSIP major infrastructure projects, to keep to key commitments; namely, the compulsory use of a biodiversity metric and the maintenance of biodiversity gains in perpetuity. It is vital that funds raised from the biodiversity credits system are used to deliver meaningful biodiversity net gain in a timely way, and that these are maintained in perpetuity. The time-limited nature of biodiversity net gain as proposed in the Bill is a significant flaw. Concerns have been raised that developers may be more likely to turn to biodiversity credits rather than local biodiversity gain for a project. This would result in local communities losing out. Developers need to fund habitats over the long term and maintain them, otherwise they simply will not thrive.
Under Schedule 14, habitats delivered through biodiversity net gain could be ploughed up or degraded after 30 years. This would destroy any ecological gains and carbon storage benefits. This goes against the grain of ecological best practice, which emphasises the need to let nature recover for the long term. Habitat restoration projects now often have end dates a century or more away. A requirement to maintain a habitat for only 30 years undermines the intention of compensation for habitat destruction. The lifetime of developments covered by net gain is likely to be much longer than 30 years, and land use changes are likely to be more permanent, so the compensatory habitat should be permanent too.
In the Public Bill Committee, last November, the Minister in the other place, Rebecca Pow, acknowledged the importance of maintaining biodiversity gains for the long term to provide
“long-lasting benefit to wildlife and communities”.—[Official Report, Commons, Environment Bill Committee, 17/11/20; col. 511.]
However, she did not support a requirement for habitats to be maintained in perpetuity, claiming that a requirement to maintain them for longer than 30 years could reduce the amount of land available to host such habitats, due to some land ownership being time limited and to landowners being reluctant to maintain sites in perpetuity. This argument does not seem particularly convincing and, to me, makes the whole approach look completely half-hearted. If land can be found and agreements reached to maintain buildings on it in perpetuity, as is the case with most development, so too can land be found and agreements reached to maintain biodiversity net gain habitats in perpetuity. If we do not do so, ultimately we could end up with overall losses.
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This view has also recently been endorsed by the Environmental Audit Committee. In its Biodiversity in the UK: Bloom or Bust? report published on 30 June, the committee recommended that gains be maintained for more than 30 years, stating:
“Nature recovery does not happen overnight and must be maintained and built upon for generations. The proposed 30 year minimum to maintain biodiversity net gains will achieve little in terms of delivering long-lasting nature recovery.”
Our Amendments 196, 201AZA and 201AZB address this concern and would ensure that habitats created under net gain would be secured in perpetuity. I ask the Minister to take our concerns about this seriously.