Understanding the Nature Restoration Fund
How the Nature Restoration Fund works and what developers need to know. This guidance will be updated regularly as the service is developed.
Applies to England
What the Nature Restoration Fund is
The Nature Restoration Fund (NRF) introduces a new way for housing and infrastructure developers to discharge specific environmental obligations, where their projects affect protected sites or species.
Rather than carrying out project-level assessments and site-specific mitigation measures, developers may have the option to pay the nature restoration levy.
Payments from developers are then pooled and used to deliver environmental conservation measures on a more strategic scale.
How it works
Under the NRF, Natural England will develop Environmental Delivery Plans (EDPs). These will offer developers the option to discharge specific environmental obligations by paying the nature restoration levy.
Environmental Delivery Plans
EDPs are evidence-based plans designed to address the impact of development on one or more sites or species through a programme of conservation measures. They are created by Natural England and cover defined geographical areas.
EDPs will offer an opportunity to deliver larger, coordinated measures that support the long-term recovery of the identified habitats and species.
The measures set out in an EDP will be funded through payment of the nature restoration levy. EDPs will include a charging schedule setting out the rate of the levy for development, and the types of development covered by an EDP. Opting to pay the levy discharges specific environmental obligations which will be outlined in the EDP.
An EDP will also set out the key information developers need so they can gauge whether it can be used for a particular development.
In most cases EDPs will be voluntary for developers, but in some circumstances, they could be made mandatory by the Secretary of State. For example, when a bespoke EDP is designed for a specific large-scale project, the developer may be required to use that bespoke EDP.
The NRF and other relevant obligations
Where an EDP is in place, it offers developers a different route to discharging their environmental obligations.
When a development uses the nature restoration levy, specific obligations will be disapplied if the relevant impacts are covered by that EDP. For example, obligations under the Habitats Regulations.
Where an EDP is voluntary, developers will still be able to use the existing routes if preferred. If an EDP is mandatory, other routes will not be available to address the impacts covered by the EDP.
Impacts not covered by an EDP will continue to be addressed through other environmental assessment processes, such as a habitats regulations assessment (HRA).
Biodiversity net gain and the NRF
Biodiversity net gain (BNG) and the NRF are distinct and complementary policies.
Mandatory BNG and the associated offsite market for biodiversity units will not be affected by the NRF. BNG is not in scope of the Planning and Infrastructure Act.
Using the nature restoration levy
Once an EDP is published and has come into force, developers can access the nature restoration levy service to see if their development is in an EDP area.
This online service will be piloted through a test and learn approach, with more features to be added over time.
If the development is covered by an EDP and a developer wants to use the nature restoration levy, they’ll need to:
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get a quote for the nature restoration levy
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request to use the nature restoration levy
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submit a levy commitment to support a planning application
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assume liability to pay the nature restoration levy
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pay the nature restoration levy
Read the guidance on using the nature restoration levy to discharge certain environmental obligations.
The NRF and the planning application process
Where an environmental impact is covered by an EDP and the planning applicant has a valid nature restoration levy commitment, the local planning authority (LPA) does not need to consider that impact through the usual processes – such as carrying out an appropriate assessment.
The LPA must still consider any environmental effects that are not covered by the EDP and must continue to comply with all other relevant planning and environmental legislation. EDPs can only be put in place to address the environmental obligations listed in the Planning and Infrastructure Act.
More detailed guidance for LPAs will be provided in due course ahead of the first EDP coming into force.