Triodos Bank made the first biodiversity net gain (BNG) unit model private sector loan this week.
BNG was introduced to the UK in February 2023. The regulation demands property developers set a minimum net gain of 10% of biodiversity, as a way to improve natural habitats and have a positive impact on biodiversity. BNG can also be bought from third-party organisations as a way to offset the difference, similar to how biodiversity bonds operate.
The loan has financed environmental consultancy firm Nature Impact to purchase land for restoration and habitat creation in Wadhurst, East Sussex. This is the first loan of its kind from Triodos based on the BNG unit model.
Lauren Rumph, senior relationship manager for nature, food and resource at Triodos Bank UK, stated: “Innovative business models have the potential to supercharge nature restoration and we hope this project will boost confidence in biodiversity net gain among investors.”
Tom Nelson, co-founder of Nature Impact, said: “Biodiversity Net Gain has the potential to drive huge growth in UK nature markets – something we desperately need right now as we grapple with the shocking decline in our nation’s biodiversity.