Biodiversity in Plymouth is set to skyrocket thanks to an innovative new venture from Plymouth City Council.
A form of green finance known as a Habitat Bank will ensure that the biodiversity net gain required by law for large developments will not only benefit residents, but will also ensure that natural habitats are looked after and maintained for many years to come.
From January 2024, national planning laws are changing and will require all large developments, as defined in planning terms, to provide at least ten per cent biodiversity net gain on all construction.
That where Plymouth's Habitat Bank - named Ocean City Nature, an arm's length, Council-owned company initially funded by a £500,000 loan from the authority, comes in.
The money will be put to work immediately to enhance biodiversity in Cann Woods, Ham Woods and Chelson Meadow, all important nature sites for the city. Work will include tree planting, coppicing and thinning, improved grassland management and seed sowing and will be carried out over the first year of operation.
Developers investing in the city will then be able to purchase 'units' of already established biodiversity from the Habitat Bank, enabling them to fulfil their legal obligations, while funding a lasting environmental legacy in publicly-owned natural environments within Plymouth.
The income from the sale of the units will then be used to repay the initial loan with interest and fund the ongoing maintenance of the sites. In the future, if there is sufficient demand it will be open to other investors and other sites will be incorporated.
As the first local authority in the UK to roll out this model, the Council are paving the way for how local government can not only protect and improve natural environments but also how fresh thinking and enterprise can encourage economic development in urban areas. It will also ensure that investment in biodiversity is realised in Plymouth, rather than elsewhere.
Councillor Tom Briars-Delve, Cabinet Member for the Environment and Climate Change, said: "This is a simply incredible piece of innovation and I'm so proud of all the work that the teams here have put in so far.
"As funding challenges for all services get tighter and tighter, this comes as a breath of fresh air. Plymouth is already a green city, but we want to make it greener for the benefit of communities and nature for many, many, many years to come.
"This is a great example of the kind of model we will be supporting through our Green Investment Fund – investing our money wisely to bring benefits not only to the city but also the planet.”
The project was conceived and developed through the Future Parks Accelerator (FPA) – a joint initiative of National Lottery Heritage Fund and the National Trust - with support from the impact investment advisor, Finance Earth, and additional funding support from Defra’s Natural Environment Impact Readiness Fund.
Harry Bowell, Director for Land and Nature at National Trust and FPA Board member said: “Plymouth City Council has been visionary and bold in setting up Ocean City Nature. We’re excited to see it launch and hope this exemplar model and learning is useful to other local authorities wanting to restore nature in ways that benefit their local communities. It’s vital government seizes the opportunity to build the capacity of cities and towns across the country to follow Plymouth’s lead in creating new ways to invest long term in urban nature recovery.”
Richard Speak, Founder Director at Finance Earth said: “Ocean City Nature is a significant moment - it represents a new way of thinking about how to revitalise green spaces in our towns and cities and reverse the decline in biodiversity. Unlocking new funding from nature markets in this way should be a key priority for all local authorities looking to deliver for their communities and nature. It is exactly the type of project the UK Nature Impact Fund will facilitate across the country.”
Although Ocean City Nature was established in March 2023, the Council's cabinet are set to approve the £500,000 loan from service borrowing when it meets on Monday 16 October.