With Biodiversity Net Gain (BNG) now a legal requirement for most development projects in England, Conservation Covenants have emerged as a crucial tool for safeguarding biodiversity improvements over the long term. These agreements are particularly relevant for landowners interested in creating Biodiversity Gain Sites and diversifying their income while contributing to nature recovery.

This guide provides practical insights into what Conservation Covenants are, how they work, and why they matter for landowners.

What Are Conservation Covenants?

Conservation Covenants are legally binding agreements made between a landowner and a Responsible Body, such as a formally designated conservation charity, local authority, or other organisation. When used for Biodiversity Net Gain purposes, these agreements set out the actions required to maintain or enhance the biodiversity values of the land over a minimum period of 30 years.

Key Features of Conservation Covenants

• Voluntary but binding: While entering a Conservation Covenant is voluntary, the obligations set out in the agreement are legally enforceable.

• Long-term commitment: Covenants ensure that biodiversity improvements are protected for decades, even if the land changes ownership.

• Tailored to your land: Each covenant is designed to reflect the specific ecological value and biodiversity goals of your land.

How do Conservation Covenants work?

For landowners, Conservation Covenants play a vital role in turning land into a Biodiversity Gain Site, units generated from which developers can use to meet their off-site BNG requirements. Here’s how the process typically works:

1. Assessment and Agreement

Ecology reports are completed for the site to be entered into the covenant, including Baseline Surveys and Habitat Management and Monitoring Plans (HMMPs). A Responsible Body will then review and comment on these ecology reports as well as carry out due diligence checks on the landowner.

Once they believe the scheme to be suitable and viable, they will work with the landowner to draft a covenant. The HMMP will form part of the agreement and specifies actions to create, enhance, or maintain habitats.

2. Implementation

Landowners carry out the required actions as outlined in the agreed HMMP, such as planting trees, restoring wetlands, or managing grasslands, to achieve the biodiversity targets outlined in the covenant.

3. Monitoring and Enforcement

The Responsible Body monitors the land to ensure the agreed-upon actions are being upheld. If terms are not met, enforcement measures may be taken.

Why are Conservation Covenants Relevant to BNG?

Under the BNG framework, developers are required to achieve a 10% biodiversity uplift for their projects. When on-site biodiversity improvements aren’t possible, developers turn to off-site solutions, such as purchasing biodiversity units from landowners who have created Biodiversity Gain Sites.

Conservation Covenants provide the legal framework to:

• Secure the long-term management of Biodiversity Gain Sites.

• Ensure biodiversity improvements meet the standards required to meet the legislation.

• Give developers confidence that their investments in off-site units will meet compliance requirements.

How Conservation Covenants Benefit Landowners

For landowners, Conservation Covenants offer a structured way to participate in the BNG market and unlock new income streams. Here’s how setting up a Biodiversity Gain Site and working with a Responsible Body can benefit you:

1. Diversified Income

By creating a Biodiversity Gain Site, you can sell biodiversity units to developers, generating reliable revenue while enhancing your land’s ecological value.

2. Support from Responsible Bodies

Responsible Bodies provide expertise and oversight, ensuring that your efforts to improve biodiversity are successful and compliant.

3. Contributing to Nature Recovery

Participating in a Conservation Covenant aligns your land with national and local biodiversity goals, helping to restore and sustain ecosystems.

What Landowners Should Know Before Entering a Conservation Covenant

• Understand the commitment: Conservation Covenants are long-term agreements, so it’s essential to understand the obligations and how they may impact your land’s future use.

• Work with trusted partners: Partnering with organisations like ILM can simplify the process, from connecting you with Responsible Bodies to ensuring your Biodiversity Gain Site meets market and legal standards.

• Explore your options: Not all covenants are the same. The terms of the agreement should reflect your land’s unique characteristics and your long-term goals.

How ILM Supports Landowners with Conservation Covenants

At ILM, we specialise in helping landowners navigate the complexities of Conservation Covenants and the BNG market. Here’s how we can help:

1. Site Assessment

We work with ecologists to evaluate your land’s potential for biodiversity enhancement and connect you with Responsible Bodies to establish a Conservation Covenant.

2. Marketing and Sales

ILM’s brokerage services link your biodiversity units with developers who need them, ensuring your available units receive the best exposure.

3. Ongoing Support

From managing habitat creation to liaising with Responsible Bodies, our team is here to make the process seamless and successful.

Frequently Asked Questions About Conservation Covenants

1. What happens if I sell my land during the covenant period?
The Conservation Covenant remains attached to the land, meaning the new owner will be legally required to uphold the agreement.

2. Can I use my land for farming while under a covenant?
Yes to an extent, depending on the terms of the agreement. Many Conservation Covenants are designed to work alongside existing agricultural practices, such as maintaining hedgerows or managing grasslands through grazing.

3. How long does a Conservation Covenant last?
Most covenants are set for a minimum of 30 years, but the duration can vary depending on the agreement.

Ready to Explore Conservation Covenants?

If you’re considering creating a Biodiversity Gain Site and entering the BNG market, ILM can guide you through every step of the process. From drafting Conservation Covenants to marketing your biodiversity units, we’re here to help you unlock your land’s potential.

Contact us today to learn more about how Conservation Covenants can work for you.