Environmental Law Update | July 2026

Biodiversity gain statements for Nationally Significant Infrastructure Projects

Biodiversity Net Gain (BNG) will become mandatory for Nationally Significant Infrastructure Projects (NSIPs) from 2 November 2026. In preparation, Defra has published ten biodiversity gain statements covering key sectors, including energy, hazardous waste and water resources, setting out how the biodiversity gain objective applies in practice.

Secondary legislation laid for the Nature Restoration Fund

Introduced under Part 3 of the Planning and Infrastructure Act 2025, Environmental Delivery Plans (EDPs) set out the strategic actions to be taken to address the impacts of development on protected sites or species in England. They provide an alternative approach for developers to meet their environmental obligations by paying a Nature Restoration Levy (NRL) into a Nature Restoration Fund (NRF), rather than undertaking individual environmental assessments or project-specific interventions.

Two statutory instruments have now been published, as follows:

• The draft Nature Restoration Levy Regulations 2026, which set out how the NRL will operate in practice

• The Environmental Delivery Plans (Appropriate Prioritisation) Regulations 2026, which enter into force on 9 July 2026, and set out how Natural England (NE) should prioritise different types of conservation measures when preparing EDPs. Reflecting the mitigation hierarchy, NE must prioritise:

  • Avoidance measures over mitigation measures and compensation measures

  • Mitigation measures over compensation measures.

Separately, Defra has said that NE will shortly be launching a formal consultation on the first draft EDP, which will address nutrient pollution. More information can be found in Defra's blog post on laying the groundwork for the NRF.

Consultation on permitted development for conservation works

On 10 June 2026, the Ministry of Housing, Communities and Local Government (MHCLG) published a consultation on new permitted development rights to support, among other things, conservation measures delivered through EDPs.

The proposals would grant national planning permission for specified conservation works undertaken by NE or its delivery partners (such as erecting small-scale structures for protected species or creating new ponds) in the implementation of an EDP, as well as for maintenance measures relating to that EDP, reducing the need for individual planning applications. This is intended to accelerate delivery and provide certainty, subject to defined limits and safeguards (including prior approvals in sensitive locations) to balance efficiency with environmental protection.

The consultation closes on 5 August 2026.

OEP responds to proposed brownfield Biodiversity Net Gain exemption

The Office for Environmental Protection (OEP) has responded to the Government’s April 2026 consultation on exempting brownfield development from Biodiversity Net Gain (BNG) requirements (see May 2026 update).

The OEP cautions that introducing further changes so soon risks “undermining confidence in nascent nature markets”. It also questions whether the proposed exemption would meaningfully support delivery of the Government’s 1.5 million homes target, suggesting instead that it could weaken commitments to nature recovery.