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How to apply for nutrient mitigation credits from Natural England

Updated 22 May 2024

Applies to England

If you want to build new housing within the Tees catchment area, you may need to mitigate any nutrient pollution your development creates. Mitigating nutrient pollution is part of the process to get planning permission with your local planning authority (LPA).

To do this, you can apply to buy credits that fund mitigation activities, such as creating a new woodland or wetland. This will balance out any nutrient pollution produced by your housing development.

This guidance explains how to buy credits from Natural England’s nutrient mitigation scheme.

Who can apply

You can apply to buy nutrient mitigation credits from Natural England if you want to build any number of housing units, including if you want to build just one house. You can be: 

• an individual 
• a housing developer of any size 
• a consultant working on behalf of an individual or a developer 

Your development must be classed as a permanent residential development and be within the Tees catchment area.

When to apply

The next round of applications opens at 10am on 5 June 2024 and closes at 11:55pm on 2 July 2024.

Applications sent after the closing date will be rejected.

You need to submit a planning application before you apply for credits. You do not need to have received planning permission. 

Choose the round that best fits your planning application timings. For example, if you plan to build housing in 12 months’ time, consider applying for credits in future rounds. 

For the Tees catchment area application rounds are planned for:  

• August 2024 (round 6) 
• October 2024 (round 7)

How credits will be allocated

The way credits are allocated depends on the number of housing units you plan to build. In any one round, 60% of the credits will be made available to small developments (those of 50 units or less).

If you’re building 50 housing units or less

You’ll have the best chance of successfully applying for credits if you:

• submit your application as soon as possible after the round has opened
• already have planning permission subject to mitigating any nutrient pollution

If you’re building 51 housing units or more

Natural England will prioritise applications where the most housing units can be built per credit. For example, an application where 10 houses can be built for every credit will be prioritised over one where 5 houses can be built.

You will have the best chance of successfully applying for credits if you already have planning permission subject to mitigating any nutrient pollution.

Step 1: Calculate how many nutrient mitigation credits you need

Calculate how many credits you need to buy, based on how many nutrients your development needs to mitigate.

To do this:

• go to the Teesmouth nutrient budget calculator
• read the guidance on using the calculators

The calculator will tell you the total amount of nitrogen you need to mitigate and how many credits you need. To mitigate one kilogram (kg) of nitrogen, you need to buy one credit. To mitigate 2.75kg you’ll need to apply to buy 2.75 credits.

The calculator will tell you if your required credit amount changes post-2030. You should submit both your pre- and post-2030 credit amounts in your application form.

Short-term credits are not available in this round. Natural England will aim to satisfy credit needs based on pre-2030 requirements, using long-term credits.

Submit your calculations to your LPA as part of your planning application. Your LPA will confirm if the calculations are correct.

You can apply for credits before your calculations are confirmed.

If your LPA tells you that the number of credits you have applied for is incorrect, email Natural England at creditsales.nutrientmitigation@naturalengland.org.uk for advice on what to do next.

How much credits cost

The credit price stays at £2,300 in this application round. In future rounds and in different catchment areas, the cost of credits may vary, depending on the cost of mitigation projects.

There is a standard admin fee included, which covers the cost of processing the application. The fee is £182.50 plus VAT and is non-refundable.

Step 2: Apply for credits

You’ll need to provide the following information in your application form: 

• the developer’s contact details 
• the consultant’s contact details (if applicable) 
• agent authorisation (if applicable)
• site location as an Ordnance Survey (OS) grid reference
• the development site address 
• a map showing the boundary of the development site as a geographic information system (GIS) polygon shapefile or Google Earth KML file 
• the planning use class of the development 
• the number of housing units you are building 
• the number of units classed as affordable housing 
• your planning application reference  
• the date you expect the first unit to be occupied 
• the number of credits you need to buy

Attach your nutrient budget calculation with your application form. If you do not, your application may be rejected. 

Send your application to creditsales.nutrientmitigation@naturalengland.org.uk. You’ll get a confirmation email from Natural England. 

Your information will be checked by a company called Accenture on behalf of Natural England.

Step 3: Sign and return your nutrient credit certificate

If your application is successful, Natural England will email you with the following: 

• an unsigned nutrient credit certificate 
• your unique reference number (quote this in all correspondence) 

Check the following information on your nutrient credit certificate:: 

• how many credits you’ve been allocated 
• the details of the development 
• the total cost of credits for mitigation 
• the scheme’s terms and conditions 

If the information is correct, sign and return the certificate to creditsales.nutrientmitigation@naturalengland.org.uk.  

Pay the admin fee 

Natural England will send you an invoice for one of the following, whichever is highest: 

• £182.50 plus VAT (standard minimum fee)  
• 10% of the total cost of credits 

You need to pay this within 28 days or risk losing your credit allocation.  

When you’ve paid, you’ll receive your signed provisional nutrient credit certificate.

Step 4: Continue your application for planning permission with your LPA

Send a copy of your provisional nutrient credit certificate to your LPA as proof that you have been allocated nutrient mitigation credits. Your LPA will confirm whether you can continue your planning application. 

Your provisional nutrient credit certificate expires 36 weeks after the issue date (the issue date is on the front page alongside the nutrient credit certificate start date.). 

If you cannot get planning permission within 36 weeks, contact creditsales.nutrientmitigation@naturalengland.org.uk to request an extension, giving the reason for any delays. 

If you do not do this, your nutrient credit certificate will expire and your credits may be reallocated.

If you do not continue with your planning application

You may be able to get a refund if you contact Natural England within 28 days of one of the following happening:

• you withdraw your planning application
• your development is refused planning permission
• you are given planning permission, but you do not agree to its terms and decide to withdraw from the development

To request your refund, email creditsales.nutrientmitigation@naturalengland.org.uk with:

• the reason for your refund
• your unique reference number

If your deposit is higher than the administration fee, Natural England may refund your 10% deposit, minus an admin fee of £182.50 plus VAT. If your deposit was the same amount as the administration fee it is non-refundable.

Step 5: Tell Natural England as soon as you get planning permission

You must tell Natural England within 8 weeks of receiving planning permission. Email a link to the decision notice on your LPA website to creditsales.nutrientmitigation@naturalengland.org.uk. 

Natural England will invoice you for the remaining value of your credits. You must pay this within 28 days.   

If you do not contact Natural England within 8 weeks or pay your final invoice in 28 days, your nutrient credit certificate will expire, and your credits will be reallocated. 

When you’ve paid in full, you’ll be sent your final nutrient credit certificate.

Step 6: Send your nutrient credit certificate to your LPA

When you have received your final nutrient credit certificate, send a copy to your LPA. Your LPA will confirm if you have met the nutrient mitigation conditions of your planning application.

When this has been confirmed, the housing on your development can be occupied.

If the size of your development changes

If the size of your development changes you must let your LPA and Natural England know.

It’s your responsibility to calculate and confirm how many credits you now need.

When you contact Natural England, provide your unique reference number and details of what has changed, including:

• how much the development has changed in size
• a map showing the new boundary of the development site as a geographic information system (GIS) polygon shapefile or Google Earth KML file
• how many credits you now need

Natural England will tell you if you need to submit a new application.

If the number of credits you need has increased, Natural England cannot guarantee it will be able to allocate you the additional credits. This may lead to a delay in your planning decision. You can apply for the additional credits in the next round of applications.

If the number of credits you need has decreased, you may be entitled to a partial refund. Natural England will tell you if this is possible.

If the name on the certificate needs amending 

If the name on the certificate needs to change you must inform Natural England as soon as possible.   

Contact creditsales.nutrientmitigation@naturalengland.org.uk.   

A change to the name of the certificate may require new checks and invoicing details. There may be an additional administration fee to pay.   

If a name change is not possible, any payment and VAT will be refunded without interest, after the admin fee has been deducted.

Get help

If you need more information on Natural England’s nutrient mitigation scheme and how to apply, email nutrientmitigation@naturalengland.org.uk.