Adam White, Head of Agriculture, Barclays UK
11 October 2024
The UK’s Biodiversity Net Gain (BNG) scheme is at risk of being under-supplied with credits due to structural barriers to farmer and landowner participation in nature markets. Our policy paper ‘Creating New Nature Markets that Work for Farmers’ details the driving factors behind the hesitancy amongst farmers and landowners to issue biodiversity credits and outlines two recommendations to UK Government to further develop a well-functioning nature market and enable the BNG scheme to reach its full potential.
The BNG scheme launched in February requires new property developments to deliver a minimum of 10% uplift in biodiversity, with house builders predominantly relying on nature markets to meet this requirement. By converting land for biodiversity preservation or carbon sequestration, nature markets could provide new revenue opportunities for farmers and landowners whilst playing a crucial role in supporting the BNG scheme.
Drawing on Barclays’ experience as one of the largest lenders and bankers to agricultural businesses in the UK, through our policy paper we sought to understand what was needed to deliver credible and well-functioning nature markets that work for farmers.
Key takeaways
Financial viability
Financial viability is the priority for farmers and shoring up reliable income streams will be a driving factor behind decision making on participation in nature markets.
Demonstrate economic value
Whilst there is openness to farming alongside preserving and restoring nature, this must demonstrate economic value rather than rely solely on environmental credentials, which are unlikely to be the primary driver of decision making.
The right government support
Market participation needs to be accompanied by the right government support, with guidance to help farmers make the land use decisions needed to enter the market. The administrative and technical underpinnings of these markets need to be robust to ensure farmers have the right tools to deliver these in a credible way.
Clarity is still needed
Scheme take up is being held back as clarity is still needed in key areas of BNG design and implementation. Focus is needed on ensuring local authorities understand and are staffed to deliver BNG, given their key role in implementation.
This report outlines two recommendations to UK Government to develop a well-functioning nature market:
1) Support navigation of land use trade-offs. Given the 30-year land lock-up that the BNG scheme requires, farmers and landowners need support in making judgements as to the relative value of their land over this period
2) Provide urgent clarity on policy gaps and guidance. In order to bring more credits to the market – needed by housing developers that are mandated to use them – the new government must confirm its commitment to the BNG scheme and finalise key gaps in the policy framework
About the author
Adam White is the Head of Agriculture for Barclays Business. Responsible for a team of dedicated Agriculture and Landed Estates managers across the UK, who support farming and land based businesses through a range of projects such as diversification, sustainability and growth.
He studied at the University of Greenwich, followed by an MBA at the University of Lincoln and a qualification in Sustainable Finance at the University of Cambridge. Adam is also a Member of the Institute of Agricultural Management and the Royal Agricultural Society of England.
He also serves as a Vice Chair of the East Anglia Agricultural Society and Trustee for the Countryside Regeneration Trust supporting with industry engagement and growth for the next generation alongside showcasing UK Agriculture and food systems across urban areas and within schools whilst building nature friendly farming support for farmers.