Triodos Bank UK has announced its first private sector loan based on a biodiversity net gain (BNG) unit model, a landmark deal that could create a blueprint for financing nature-based solutions at scale.
The loan has enabled environmental consultancy Nature Impact to purchase 70 acres of land in Rolvenden in Kent and another 52 acres in Wadhurst, East Sussex – two sites that offer huge potential to unlock underutilised and degraded farmland for BNG.
The projects will see the restoration and creation of a wide range of habitats, including native wildflower meadows, traditional orchards, woodland, scrub, ponds, wetlands and hedgerows. These aim to provide new and improved homes for a wide range of English wildlife.
This is the first private commercial debt package from Triodos Bank UK based on a BNG unit model.
It follows a £3.85m loan to tree planting charity Avon Needs Trees, who acquired 422 acres of land that will eventually form part of Lower Chew Forest – the largest new woodland in the southwest for a generation.
Laura Rumph, senior relationship manager for nature, food and resource at Triodos Bank UK, said, “Triodos has been advocating for the critical role of the financial system in reversing biodiversity loss for more than four decades, and we are proud of our heritage as a frontrunner in financing nature-based solutions.
“Innovative business models have the potential to supercharge nature restoration and we hope this project will boost confidence in biodiversity net gain among investors.
“We are delighted to have found a partner in Nature Impact who are totally aligned with our vision and mission and we are excited to work with them to bring about lasting change.”
Biodiversity net gain (BNG) was introduced in England earlier this year and places a legal requirement on property developers to demonstrate a minimum net gain of 10 per cent of biodiversity, ensuring that habitats are left in a measurably better state than they were before the development took place. If this net gain cannot be achieved on site, BNG units can be bought from local nature projects and used to offset the difference, which is where Nature Impact offers its service.
Founded in 2023, Nature Impact’s mission is to deliver investable nature-based solutions for people and planet – with the current goal of establishing high-integrity BNG habitat banks across southeast England. Its BNG units will be sold to developers in London and the South East.
Tom Nelson, co-founder of Nature Impact, said, “Biodiversity Net Gain has the potential to drive huge growth in UK nature markets – something we desperately need right now as we grapple with the shocking decline in our nation’s biodiversity.
“We are incredibly grateful to the team at Triodos for developing an innovative lending model that will enable us to transform the sites in Rolvenden and Wadhurst, and create havens for wildlife. Taking a nature-first approach, we ultimately want to establish hundreds of groundbreaking biodiversity projects across the country. We believe this loan could represent a tipping point for nature finance, and we couldn’t be more excited to be part of this movement.”
One of Europe’s leading sustainable banks, Triodos has pioneered the financing of nature-based solutions since its inception in 1980. Last month the bank announced its commitment to provide at least €500 million in investments, loans and contributions to the nature-based solutions sector by the end of 2030.