Triodos Bank recently made history by providing the first private sector loan based on the biodiversity net gain (BNG) unit model.
BNG was introduced in the UK in February 2023, requiring property developers to ensure a minimum net gain of 10% in biodiversity to enhance natural habitats and positively influence biodiversity. Developers can also purchase BNG credits from third-party organizations to offset any deficits, similar to the operation of biodiversity bonds.
This groundbreaking loan has enabled the environmental consultancy firm Nature Impact to acquire land for restoration and habitat creation in Wadhurst, East Sussex, marking a significant milestone for Triodos in utilizing the BNG unit model.
Lauren Rumph, senior relationship manager for nature, food, and resources at Triodos Bank UK, expressed optimism, stating, “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, highlighted the potential of BNG to stimulate substantial growth in the UK’s nature markets, emphasizing the urgent need for action in response to the alarming decline of biodiversity in the nation.