Executives at the Evergreen Fund have said they could almost quadruple the land in English habitat banks generating biodiversity net gain (BNG) over the next couple of years up to around 400 hectares, if demand increases, Carbon Pulse has learned.

The fund could build on the BNG-dedicated land in its two habitat banks, currently spanning approximately 102 ha, if demand for units increases, said Philip Trehern, director of biodiversity maintenance experts Ground Control.

Launched in 2020 with a target of £5 million ($6.6 mln), the Evergreen Fund is funded solely through 5% of annual profits from biodiversity landscape experts Ground Control. The vehicle had raised £4.1 mln as of the end of March.

“1,000 acres (405 ha) wouldn’t be unreasonable,” Trehern told Carbon Pulse.

“The goal of the fund is to deliver as much nature recovery as we can. We see BNG as a key funding opportunity for that,” said Chris Bawtree, woodland creation lead at Ground Control.

The fund has already set up two habitat banks. One covers 62 ha in north Essex in a wider project with arable land, woodland, and grassland. The other is a 40-ha project in South Cambridgeshire spanning woodland, mixed scrub, and wildlife ponds.

Three weeks ago, conservationists found a rare insect, the brown-banded carder bee, on the Essex site (see below). Bumblebee Conservation Trust helps Ground Control to monitor species.

Credit: Clare Alley, Bumblebee Conservation Trust

However, Ground Control expected demand for BNG units to be higher. It has sold just one out of over 500 units across both projects.

“We’re certainly seeing a good number of inquiries coming through, but nothing at the sort of scale that we’d hoped,” said Bawtree.

“Fingers crossed that things will pick up over the next six months or so. That’ll really dictate our financial modelling to see when we can take the step to purchase more land.”

Developers have had to plan to improve nature by 10% under the BNG legislation since February in schemes that could involve buying off-site BNG units.

BNG has been praised as a world-leading policy, but demand has been slow to take off, with 40 key challenges raised last month.

REGISTERED UNITS

The BNG register has only published details of 11 initiatives since the scheme went live due to delays with local planning authorities. Some developers have struggled to find units to buy from nearby conservation schemes as a result.

However, units from the Evergreen Fund’s South Cambridgeshire site are among the 11 schemes on the register.

Ground Control had established a relationship with the local planning authority early on, backed by specialist legal support.

“What made the difference was having a receptive and engaged local planning authority,” said Bawtree.

Alongside the BNG units, Ground Control is interested in investing in voluntary markets across biodiversity, nutrients, and carbon, as well as environmental ventures via the fund.

The fund’s investments in early-stage companies range in size from £10,000 to £500,000. They include stakes in companies involved in rewilding, measuring carbon, and social housing thermostats.

By Thomas Cox – t.cox@carbon-pulse.com

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