Planning and Infrastructure Bill: New ‘Nature Restoration Fund’ for Developers

The Government’s Planning and Infrastructure Bill, introduced in March, proposes major changes to how developers meet environmental obligations. Under the new system, developers will have the option to pay a Nature Restoration Levy into a central Nature Restoration Fund, rather than directly delivering on-site environmental mitigation.

The scheme is delivered through Environmental Delivery Plans (EDPs), prepared by Natural England, which will outline conservation measures required for specific types of development in certain areas. If developers pay the levy linked to an EDP, certain environmental obligations — such as protected species licensing and habitat impact assessments — will be considered discharged.

Key points:

  • Environmental Delivery Plans (EDPs): Set out conservation actions and levy charges, and must pass an “overall improvement test”.

  • Nature Restoration Levy: Developers can pay this to meet environmental duties, unless the EDP makes payment mandatory.

  • Flexibility: Developers retain the choice to pay the levy or comply under current laws — unless made mandatory by an EDP.

  • Scope: The changes aim to unlock stalled developments, particularly those affected by nutrient neutrality rules.

  • Safeguards: EDPs must be monitored and can be judicially reviewed; Natural England can also acquire land if needed for conservation.

  • Limits: Biodiversity net gain obligations remain unaffected.

The first EDPs are expected shortly after the Bill receives Royal Assent, with charges and conservation plans tailored to each project type and location.

Resources

The Government has published the following helpful resources and blog posts:

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