Tories reveal plans for 'conservation banks'

The Conservative party plans, which would fund nature protection through the sale of conservation credits to developers, have been met with caution by wildlife groups

John Vidal, environment editor
guardian.co.uk, Monday 16 November 2009 00.05 GMT
Developers would be forced to buy credits from "conservation banks" as a condition of building permission under new Conservative party plans to revolutionise nature protection revealed exclusively to the Guardian.
The hundreds of millions of pounds which could be generated each year will lead to the creation of major new woodlands, wetlands and wildlife corridors, and would also earn money for farmers and charities, they say.
The plans, which have been sent for comment to Britain's major conservation groups by the shadow environment secretary, Nick Herbert, and seen by the Guardian, received a mixed welcome from green groups such as RSPB and Wildlife Trusts.
Many conservationists like the idea in principle if it leads to new funds, but fear that the entry of the free market into nature protection could be a licence to destroy habitats on the promise of compensatory ecological benefits elsewhere. In addition, there are fears that a market-based scheme, if successful, could encourage the government to withdraw public money from nature protection and rely on developers to protect Britain's most valuable wildlife sites.
"We do need a change in attitude to conservation. But there is a danger that it could be used to destroy something on a vague promise that it would be compensated for elsewhere. The devil is in the detail," said Tony Whitbread, chief executive of Sussex Wildlife Trust.
The "banks", which could be run by local communities, voluntary groups or companies, would issue credits to create or manage wildlife reserves or other conservation initiatives. An open market would be set up by the government, and developers would have to buy credits at the going market rate.
"The existing bureaucratic, regulatory approach has failed to halt biodiversity loss. We need radical new thinking to reverse the decline. Our natural ecosystems and the services they provide like carbon storage, water storage, habitat for wildlife are worth billions of pounds. We have to find a way to unlock this value", said Herbert, in an exclusive interview with the Guardian. "With a market approach we can look forward to new ways of supporting wildlife, habitats and landscape."
He denied that the money raised would be a new tax on developers or would lead to companies owning nature reserves. "This is not the privatisation of nature. This will not affect the value of land. It's about opening up a new revenue stream. The market system is a new, additional way to achieve protection of wildlife, not a substitute. I believe there will be a flourishing of schemes across the country," Herbert said.
"We will rule out any proposals that would weaken the existing protection of endangered sites or species and ensure that any measures are in addition to existing safeguards regarding development on green spaces", said Herbert. "My goal is that the schemes would be managed by minimal bureaucracy. Protected land must remain off-limits to development. It is also essential that any new mechanism does not impose additional costs on businesses," he said.
But he declined to say whether the new banks would be run to make a profit or what it could cost to set up and maintain them.
"It's a new idea, and it needs more thinking through, but its definitely an idea worth thinking about," said Mark Avery, conservation director at the RSPB. "But we are perplexed how it would work in practice. The conundrum yet to be worked out is how does it produce lots of money without it being an unpopular tax on development? Also, how do you give local people a big say in how the money is spent whilst making sure that it delivers the greatest conservation benefit?"
"Government could generate a significant market mechanism for getting greater funding into the natural environment by implementing a policy for habitat banking in the UK. In the US wetland mitigation banking alone was worth $3bn in 2008 and there is no reason why we could not stimulate a similar system in the UK", said David Hill, a board member of Natural England and co-founder of the Environment Bank.
The idea was first floated in a speech in February by the Conservative leader, David Cameron. "Conservation credits are about placing a value on biodiversity for the first time, because only if you place a value on something can you truly compensate for loss. This is potentially an incredibly exciting idea to enhance biodiversity, but the practicalities need careful consideration," he said.