Triodos Bank Launches First Biodiversity Net Gain Loan In The UK
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Triodos Bank UK has given its first private loan using a biodiversity net gain (BNG) model. The bank said this loan is an important step toward funding huge nature projects in the UK.
The loan aims to help Nature Impact, an environmental group, buy 70 acres of land in Kent and 52 acres in East Sussex. These areas will be turned into homes for wildlife, including meadows, orchards, woodlands, ponds, and hedgerows.
The bank stated this project is their first commercial debt package based on a BNG model. It follows a £3.85 million loan provided to Avon Needs Trees, which used the funds to buy 422 acres of land for Lower Chew Forest in the South West. That forest is expected to be the largest new woodland in the region in decades.
New Biodiversity Rules Encourage Habitat Restoration
According to Triodos Bank, the BNG approach was introduced in England earlier this year. It requires property developers to ensure a 10% increase in biodiversity after their projects. If developers cannot meet the biodiversity target on their site, they can buy BNG units from local nature projects. The bank said Nature Impact is providing this service with its new habitat banks in South East England.
Nature Impact, founded last year, works to provide nature-based solutions that are both good for the environment and appealing to investors. The company’s BNG units will be sold to developers in London and surrounding areas.
Triodos Bank’s senior relationship manager for nature, food, and resources, Laura Rumph, stated that the bank has been a leader in funding environmental projects for over 40 years. She said the BNG model has the potential to drive significant change, adding, “We are excited to support Nature Impact and look forward to the lasting impact this project will bring.”
Nature Impact Aims To Grow Biodiversity Markets
Nature Impact Co-Founder Tom Nelson said the loan will help transform the land in Rolvenden and Wadhurst into havens for wildlife. He explained that the BNG model can unlock major growth in the UK’s nature markets. He also expressed gratitude to Triodos Bank for creating a lending model that supports nature restoration.
Nelson shared the company’s vision to establish hundreds of biodiversity projects across the country. He added that the loan marks an important step for nature finance, and the company is thrilled to be part of it.
Triodos Bank, known as a leader in sustainable banking since 1980, said it remains committed to nature-based solutions. The bank announced last month that it plans to invest at least €500 million into this sector by 2030, emphasizing its dedication to reversing biodiversity loss.
