England’s biodiversity market favors grassland, but only 2% of land has sold

After 16 months, planned habitat work was concentrated in a few types, with little new wetland or woodland and limited sales.

Editorial illustration — not from the study.

Researchers examined England’s biodiversity offset register and planning portals to assess the market supporting construction projects that must deliver biodiversity net gain. They found that planned habitat delivery was concentrated in a few types, particularly neutral grassland, while there was very limited delivery of new wetland and woodland.

Most committed offsets were intended to improve the condition of habitats that already exist. The researchers also found that only about 2% of the registered offset area had been sold, pointing to limited demand at this early stage of the market.

What the market is delivering

Neutral grassland accounted for 44% of planned habitat in the market. Delivery of new wetland and woodland habitats was very limited, and most committed offsets focused on improving the condition of existing habitats rather than creating new ones. Only approximately 2% of the registered offset area had been sold after 16 months of operation. The researchers concluded that the scoring system used to measure biodiversity net gain is creating incentives for particular habitat types.

Why the pattern matters

The findings show how the rules used to measure biodiversity gains can shape which habitats a market supports. They also identify demand as a constraint on the market’s growth, highlighting the role of government regulation in scaling England’s biodiversity offset system. The results may also be relevant to other biodiversity offset markets that use versions of England’s scoring system.

Evidence and limits

The study is based on data collected from England’s biodiversity offset register and planning portals, covering the market’s first 16 months. It assesses planned and committed habitat work, as well as recorded sales, rather than long-term ecological outcomes. Because the market was still at an early stage and only about 2% of the registered area had been sold, these are preliminary findings and may not describe its later development.

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