These trading rules set minimum requirements for habitat creation and enhancement to compensate for specific habitat losses resulting from a new development.
If these rules are not followed, a developer cannot claim that there is biodiversity net gain, even if the planning application has achieved the minimum 10% BNG required.
Rule 1 of the Statutory Metric and the Small Sites Metric (SSM) guides state that the trading rules must be followed.
Rule 2 states that biodiversity unit outputs for each habitat type – Area, Hedgerow or Watercourse – must not be added together, traded, or converted between types. The requirement to deliver at least a 10% net gain applies to each separate habitat type.
The trading rules only apply to the point of no net loss of a specific habitat. Once the trading rules have been met for this habitat, the biodiversity net gain requirements can be met by the creation and enhancement of any other habitat, provided it is the same habitat type.
This table from the Statutory Metric sets out how they apply:
The trading rules for the SSM are slightly different. This is because the SSM does not cater for high and very high distinctiveness habitats (if these are present, the Statutory Metric must be used):
Although the calculator warns of any breaches of the trading rules, the design of the SSM does not allow users to identify where the breaches have occurred. However, the Statutory Metric does. So, if the habitats input into the SSM calculator are transposed to the Statutory Metric calculator, this will reveal where the trading rules breaches are and allow the user to consider how to mitigate the losses whilst still complying with the trading rules.
There are special rules for very high distinctiveness habitats and for compensating for loss of watercourses and high distinctiveness woodland, which are not addressed here.
How the trading rules apply to urban tree habitats
Individual trees habitat has medium distinctiveness. This means that this habitat can only be replaced like for like, although higher distinctiveness habitats can be substituted when the Statutory Metric is used.
Other broad habitats with the same distinctiveness cannot be substituted. For example, Woodland and forest habitat cannot be used to replace lost Individual trees habitat unless it has a higher distinctiveness and the SSM is not being used.
As a result, the requirement to replace lost trees can result in many more trees having to be planted (often off site) than will be lost. In one recent example we examined, 116 replacement trees were needed to comply with the trading rules, even though only 12 were being removed.
Hopefully, developers will now think twice before seeking to remove trees to make way for their plans.
Other Blogs in the series
Bristol Tree Forum 
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