Evaluation of the Biodiversity Offsetting Pilot

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Evaluation of the Biodiversity Offsetting Pilot Defra project code: WC 1051 Evaluation of the Biodiversity Offsetting Pilot Programme Final Report Volume 1: June 2014 Collingwood Environmental Planning Limited in partnership with The Institute for European Environmental Policy (IEEP) 1 Volume 1: Final Report June 2014 Project title: WC1051: Evaluation of the Biodiversity Offsetting pilot programme Contracting Department for Environment, Food and Rural Affairs (Defra) organisation: Lead contractor: Collingwood Environmental Planning Limited Address: 1E The Chandlery, 50 Westminster Bridge Road, London, SE1 7QY, UK Contact: Dr William Sheate (Project Director) Jonathan Baker (Project Manager) Tel. +44 (0)20 7407 8700 Fax. +44 (0)20 7928 6950 Email: [email protected] [email protected] Website: www.cep.co.uk Partner organisations: The Institute for European Environmental Policy (IEEP) Address: IEEP Offices, Floor 3, 11 Belgrave Road, London SW1V 1RB, UK Contact: Dr Graham Tucker Tel: +44 (0)20 7799 2244 Fax: +44 (0) 20 7799 2600 Email: [email protected] Website: www.ieep.eu Report details: Report title: Volume 1: Final Report Date issued: June 2014 Purpose: To provide a synthesis of the information collected across the two year evaluation of the biodiversity offsetting pilot programme Version no.: 2.4 Author(s): Baker, J., Sheate, W.R., Bennett, T., Payne, D., Tucker, G. White, O and Forrest, S. Reviewed by: Eales, R. and Ten Brink, P. Acknowledgements The Steering Group would like to thank the pilots for being so generous with their time and insights. They would also like to thank the Complementary Projects, the Natural England advisers and to all of those who provided their time and expertise to the evaluation, including the team at CEP. The Project Steering Group greatly valued the efforts and expert help of Ian Smith from Natural England in helping to guide this project and for his dynamic assistance with the production of this final report, on the brink of his retirement. He is most fondly and respectfully remembered. 2 Volume 1: Final Report June 2014 0. Executive Summary 0.1 Introduction The evaluation project of the biodiversity offsetting pilot programme was a two year study commissioned by Defra which began in July 2012, undertaken by Collingwood Environmental Planning (CEP) in partnership with the Institute for European Environmental Policy (IEEP). This is the Executive Summary of the Final Report of the evaluation. The biodiversity offsetting pilot programme was established by Defra in April 2012, consisting of six voluntary pilot areas that agreed to establish pilot groupings of Local Planning Authorities (LPAs) and other interested stakeholder organisations to pilot the concept of voluntary biodiversity offsetting in England. In so doing the pilot areas would also test the biodiversity offsetting metric developed by Defra. The six pilots were: Coventry, Solihull and Warwickshire (CSWAPO). Devon (comprising three sub-pilots North, South and East Devon). Doncaster. Essex. Greater Norwich. Nottinghamshire. Although six pilot areas are described, in practice there were eight as the Devon pilot consisted of three sub-pilot areas. To distinguish between the three Devon sub-pilots, this report refers to eight pilot areas. The stated objectives of the evaluation were, to assess the extent to which the biodiversity offsetting pilots: A: Help to use resources more effectively to deliver greater benefits for biodiversity. B: Streamline the process of agreeing compensation for biodiversity loss as required by planning policy, in a cost effective way. 0.2 Key findings The key findings emerging from the evaluation, grouped under the thematic headings used across the evaluation are: Governance Every pilot was led by a pilot host who provided the majority of the leadership, momentum and decision making for the biodiversity offsetting pilot areas. The pilot hosts also provided ecological expertise; this was felt to be essential to implementing the biodiversity offsetting approach. Six of the eight pilots were supported by a group of stakeholders from different organisations, mainly LPAs and Non-Governmental Organisations (NGOs). These pilot groups were reported to work well and to provide a useful forum for the discussion of issues and the provision of advice to the pilot hosts. Within the pilot programme Natural England’s role was to provide technical advice and to accredit offset providers and projects. The pilots welcomed the involvement of Natural England, although they would have appreciated more proactive support particularly with regard to promoting biodiversity offsetting within specific applications. Process and management Each pilot developed a biodiversity offsetting ‘strategy’ which varied in the level of detail and length. Developing these documents provided a focus around which the biodiversity offsetting metric (developed by Defra) could be tested and facilitated the discussion of 3 Volume 1: Final Report June 2014 biodiversity offsetting within the pilot groups. The strategies also resulted in principles and/or specific areas where offset sites would be targeted. Seven of the eight pilots used the metric in ‘live’ applications. Where the metric was used, stakeholders felt that it was largely beneficial: providing a quantified, consistent, transparent and relatively simple process that accounted for a wider range of biodiversity impacts than current practice. There were numerous examples across the pilots where the use of the metric was considered to have led to improvements in the nature and extent of on-site mitigation and compensation (above what was likely to have happened without the metric). Despite broad support for the metric, some stakeholders had concerns. They noted that the metric omitted certain ecological aspects (e.g. species, habitat function and connectivity), it required additional processes and information requirements and, in the view of some, it over-estimated the importance of lower value habitats and the impact of their loss. Legal and development planning All but one of the pilots felt that within a voluntary system existing national policy was not sufficient to support biodiversity offsetting particularly for lower value habitats. The definition of ‘significant harm’ as referred to in the National Planning Policy Framework (NPPF) was key to this with CSWAPO using the metric to support their interpretation of significant. Through this process, supported by good quality ecological data and substantial ecological expertise, this pilot was able to use the metric on over 60 applications and secure offsite compensation on six before the end of the pilot programme. Partly in response to the perceived insufficiency of national policy, the pilots worked with planning policy officers to include explicit reference to biodiversity offsetting as a mechanism to achieve no-net-loss/net-gain in local planning policy. Because of the time taken to prepare them, few plans with explicit reference to biodiversity offsetting were adopted during the pilot programme. Early engagement between applicants and planning authorities in the planning application process was regarded by participants as key to ensuring that the metric was used and, where appropriate biodiversity offsetting was considered as an option to compensate for residual losses. However, in all but one of the pilot areas, a lack of resources hindered a proactive approach to promoting the metric and biodiversity offsetting. Consistent with current practice, section 106 legal agreements (s.106) were to be used to require off-site compensation and long term management. Planning conditions were used for on-site enhancements. During the pilot programme no s.106 agreements were formalised, largely because of the time taken to determine applications, agree s.106s and commence development. Although none were legally in place as many as 16 applications were expected to result in s.106s including offsite compensation. Costs The time and costs to develop the biodiversity offsetting strategy varied depending on its complexity. Very simple, informal strategies only required a few days of time to be prepared whereas strategies that were complex or part of wider planning processes used significantly more resources, up to £13,000. Despite some inconsistency in the views of stakeholders, the general opinion was that biodiversity offsetting and the use of the metric had the potential to lead to a marginal reduction in time for planning decisions, but there was an initial learning period during which it took more time. Compared to current practice, in applications with residual biodiversity loss the use of the metric and biodiversity offsetting increased the costs of compensation. Increases to cost occurred because of the higher standards required by the metric compared to current practice, in particular requiring management ‘in perpetuity’ and using risk multipliers 4 Volume 1: Final Report June 2014 In the pilot programme costs for offsets were subject to significant negotiation between applicants and LPAs, with applicants refusing to meet full costs and not pursue biodiversity offsetting (and therefore no-net-loss) in many instances. The lack of costed management plans and the insufficiency of existing evidence on the costs of habitat restoration and recreation meant developers and pilot hosts were not able to accurately predict the costs of specific offsets. Searching for and preparing appropriate offset sites entailed costs which developers were reticent to meet – these costs were sensitive to the exchange
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