Our natural capital

credentials

Natural Capital is the value of the world’s natural resources. This includes forests, land, minerals, water, biodiversity, and all living things.

Its benefits go beyond just the environment, providing:

Environmental gains – Carbon sequestration, wildlife habitat creation, and cleaner air and water
Economic opportunities – New revenue streams through nutrient or water neutrality schemes and biodiversity offsets
Social benefits – Recreational spaces and improved community well-being
Nature positivity – improving the natural environment for the benefit of climate change mitigation.

Unlocking and increasing the output of natural capital is a fundamental part of the UK’s strategy to deliver Net Zero. It focuses on supporting, incentivising, and mandating land use that's environmentally and ecologically sustainable.

Irwin Mitchell has a proven track record advising on Natural Capital projects – including habitat banks, nutrient mitigation schemes operating on a credit sale basis, and assisting clients who are looking to find a solution to water neutrality issues. We also act for developers and landowners who are seeking solutions on a site-specific basis.

Our clients include:

Habitat bank operators
Wildlife charities
Estates
Developers
Promoters
Individual landowners and farmers
Local authorities.

We are recognised experts in this area, being members of the Nutrient Neutrality Forum and UKELA. Our team includes legal experts who specialise in development, planning, environment, rural estates and tax, commercial and corporate which means we can provide a holistic service, securing your investments for the future.

How can we help you with natural capital?

Maximising natural capital assets - we can help you to strategize ways to enhance your land’s value through innovative legal mechanisms which leverage the availability of assets and reduce risk. We have an extensive network of professional consultants who can also assist you in evaluating potential revenue streams to help to generate and future-proof your income.
Compliance and project development – we can guide you through the myriad of options and obligations including nutrient and water neutrality schemes, biodiversity net gain solutions, Section 106 and 33 agreements, and conservation covenants.
Transactions and agreements - this can be a complex area of natural capital, but we’ll help simplify it for you, advising on facilitating the acquisition and disposal of nutrient (including nitrate and phosphate) credits, planning agreements, commercial contracts, allocation agreements, land conveyancing and farm business tenancies.
Tax planning - there are tax implications that need to be considered with natural capital projects. We’ll help you plan a clear strategy and can advise you on ways to optimise your tax positions, including agricultural and business property relief.
Training - we can provide training to organisations, local authorities and ecologists on the legal implications of BNG and neutrality schemes.

Some of our recent work in natural capital projects includes:

Case study: Legacy Habitat Banks

We worked alongside Legacy Habitat Banks Ltd (Legacy) to develop its standard template documentation and provide strategic advice and guidance on the implementation of biodiversity net gain (BNG) in England.

Legacy is one of the leading habitat bank aggregators in the country and is working to create habitat banks devoted to improving biodiversity.

The standard templates we have created for Legacy include:

a Standard Heads of Terms,
BNG Off-site Unit Allocation Agreement,
A s.106/33 Planning Agreement (whilst we await the authorisation of Conservation Covenants in legislation); and
the establishment of a contractual joint venture Habitat Creation & Management Agreement (HCMA) to govern Legacy’s relationship and obligations with landowners and councils.

We continue to support Legacy with their projects and the negotiation/set up of habitat banks across the country, and through the transition from the previous policy-led system into the legislative framework for statutory BNG in England.

A large unitary authority

Advising on appropriate wording in policies to be published, consulted upon and considered under their emerging Local Plan Part 2 Land Allocations and Detailed Policies which included representing them in EIP.

Leading residential developers

Provided the following solutions:

a bespoke water neutrality solution for a residential development in Horsham. We also assisted with the drafting and negotiation of the s.106 agreement securing the water neutrality solution.
planning agreements for the provision of securing of nutrient mitigation for residential developments, including in the South Downs National Park and Solent local planning authorities.
drafting and negotiating a bespoke habitat management agreement for reptile mitigation comprising the translocation of reptiles required as part of a development in Thurrock.

Agricultural holding

Establishing what is currently, the only Natural England approved nitrate trading scheme in the Chichester catchment area. Our advice has included the tailoring of allocation agreements to deal with specific developer and council requirements within that LPA. This is also an overarching scheme, backed by a bespoke s.106/33 agreement, with notices being provided to LPAs when credit sales take place with mitigation being secured against developments by Grampian planning conditions.

Trading scheme

Set up of a nutrient trading scheme including dealing with s.106 and multiple developer credit allocations.

Landed estate

Establishing a nutrient neutrality trading scheme for approximately 3,000 credits in the Solent Catchment. The scheme provides offsite mitigation to unlock hundreds of units of residential development. Our advice covered planning agreements with numerous local authorities, natural capital schemes, and estate management. At the time, this was the largest woodland planting scheme on the South Coast.

Large port authority

Advised on the environmental effect of its operational development and its local plan allocation. This included negotiating with the local planning authority and Natural England in respect of the Habitats Regulations Assessment and Environmental Impact Assessment.

LPA Executive and Planning Committee

Advised on protests and the responsibilities and liabilities of police and other statutory bodies, in relation to one of the first UK applications associated with ‘fracking’ (hydrocarbon exploration).

National developer of BNG and neutrality credits

Advising this provider of BNG and nutrient neutrality credits on multiple natural capital projects and land acquisitions.

Wildlife Trust

The establishment and sale of nitrate credits from two re-wilding sites to the development market. This work included the negotiation and completion of s.106/33 planning agreements, the creation of commercial credit allocation agreements and the administration of many nitrate credit sales and monitoring.