What is Biodiversity Offsetting?
Biodiversity offsetting is defined as conservation activities that are designed to give biodiversity benefits to compensate for losses - ensuring that when a development damages nature (and this damage cannot be avoided or mitigated) new nature sites will be created1.
Put simply, where development will result in an unavoidable loss of habitat from a site, then new habitat should be created off-site. This habitat creation is called biodiversity offsetting.
Biodiversity offsetting is now commonly achieved by purchasing Biodiversity Units allowing a measurable outcome. At Arventus we believe that in addition to simply trading Biodiversity Units, a cohesive and cost effective approach to biodiversity offsetting can be taken to maximise the benefits to species as well as habitats. Building on the principles of biodiversity offsetting, targeted habitat creation and long term management can deliver a more sustainable outcome for both a development and nature.
There are a number of principles upon which Biodiversity Offsetting is based. In summary, these are:
- No change in the existing levels of protection for biodiversity
- Deliver benefits for biodiversity
- Be managed at a local level as far as possible
- Be as simple and straight forward as possible
- Be transparent
- Be good value for money
1 Biodiversity Offsetting Guiding Principles of Biodiversity Offsetting (DEFRA, 2011)


Will Biodiversity Offsetting allow important ecological areas to be destroyed?
Biodiversity offsetting does not reduce the protection currently given to important habitats or species.
The Mitigation Hierarchy set out below is used by Local Planning Authorities, Natural England and Ecologists when ecological impacts are anticipated from a development. Offsetting forms part of this hierarchy.
-
Avoid: If it is possible to make alterations to a proposed development to avoid impacts then this is the simplest option.
-
Mitigation (or Reduction): Can measures be implemented to reduce possible impacts on habitats and species, for example, can the potential impacts be lessened by undertaking them at a certain time of year?
- Compensate (including Offsetting): If the impacts cannot be avoided or lessened then an alternative needs to be provided, either on-site (compensation) or off-site (offsetting).
Local Planning Authorities, through the planning system, will continue to apply this hierarchy and will make the final decision as to whether any potential impacts are acceptable and whether offsetting is appropriate or necessary. The Local Planning Authority will also decide whether a proposed offsetting scheme is suitable.