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We remain firmly of the view that when it comes to development and the environment, we can do better than the status quo, which too often sees both sustainable housebuilding and nature recovery stall. Instead of environmental protections being seen as a barrier to growth, we are determined to unlock a win-win for the economy and for nature.

The current approach to discharging environmental obligations too often delays and deters development, placing unnecessary burdens on housebuilders and local authorities. It requires housebuilders to pay for localised and often costly mitigation measures, only to maintain the environmental status quo. By not taking a holistic view across larger geographies, mitigation measures often fail to secure the best outcomes for the environment.

The Nature Restoration Fund (NRF) provided for by the Planning and Infrastructure Act provides an alternative to this sub-optimal arrangement. By facilitating a more strategic approach to the discharge of environmental obligations, leveraging economies of scale and reducing the need for costly project-level assessments, it will streamline the delivery of new homes and infrastructure and result in improved environmental outcomes, delivered more efficiently.

Strong safeguards are built into the legislation to ensure positive environmental outcomes. These include a binding overall improvement test, monitoring and back-up measures, remedial action, and the ability to amend or revoke plans if necessary. These protections ensure accountability whilst still allowing the flexibility necessary to drive strategic nature recovery, while supporting the delivery of the homes and infrastructure we need.

The NRF model builds on proven successes – from enabling over 50,000 homes around Thames Basin Heaths whilst protecting ground-nesting birds, to unlocking more than 20,000 homes in the Arun Valley whilst safeguarding internationally important wetlands. These examples show what’s possible when we move beyond the constraints of site-by-site assessment and embrace the opportunities provided by a more strategic approach.

The Nature Restoration Fund represents the next evolution of this strategic approach to development and the environment. By working in partnership with Natural England, local authorities, communities and developers, we can build the homes and infrastructure Britain needs whilst improving our natural environment for future generations. This is not just an aspiration – it’s a practical pathway to the resilient, prosperous and nature-rich nation we’re determined to build.

Mary Creagh CBE MP, Parliamentary Under-Secretary of State (Minister for Nature)

Matthew Pennycook MP, Minister of State (Minister for Housing and Planning)

Introduction

In December 2025, the Planning and Infrastructure Act (2025) received Royal Assent and is now law. A key part of this Act is the Nature Restoration Fund (NRF).Ìý

The NRF introduces a new way forÌýhousing and infrastructureÌýdevelopers to meet their environmental responsibilities where their projects affect protectedÌýsites or species. Natural England will deliver the NRF through Environmental Delivery Plans (EDPs). Each EDP will cover a specific area and outline a package of conservation measures that will addressÌýone or more impacts of development on a protectedÌýsiteÌýor species.ÌýWhere anÌýEDP is in place, developers can make a payment into the NRF to meet their environmental responsibilities.Ìý

This is a change to the current system, where developers mustÌýidentifyÌýany impacts and put in place their own site-specific mitigation measuresÌý–ÌýaÌýprocessÌýthatÌýcan be complexÌýandÌýuncertain.

The NRF allows a more flexible and strategic approach. The main benefits of this are:Ìý

1. Better outcomes for nature: Payments from multiple developmentsÌýwill be pooled, allowing Natural England to deliver conservation measures at scale. This will maximise environmental benefits. The Act requires that, by the end of each EDP,Ìýthe effect of the conservation measures will materially outweigh the effect of the EDP development on the conservation statusÌýof each environmental feature.Ìý

2. A simpler, more predictable process for developers:ÌýtheyÌýwill have access to a streamlined process and simple user experience. The result is a win-win for development and nature.Ìý

Earlier this year, the Ministry of Housing, Communities and Local Government (MHCLG) published aÌýfactsheet on the NRF, which sets out more on the principles and aims of the NRF.Ìý

This plan sets out how we will deliver the NRF now that its legislative framework is in place, including:Ìý

• how the NRF will work in practice
• our implementation plans and milestones

The government recognises that the NRF is a change in approach and successful implementation goes beyond merely introducing the reforms. It is important that everyone understands our next steps and feels confident that the model will deliver for development and nature.Ìý

The government appreciates the constructive way that stakeholders have worked with us so far. We look forward to continuing this engagementÌýat a local and national levelÌýas we move into delivery.Ìý

How the NRF will work in practiceÌý

This section sets out how the NRF willÌýoperateÌýin practice, from the creation ofÌýEnvironmentalÌýDeliveryÌýPlansÌý(EDPs)Ìýthrough to ongoing monitoring andÌýevaluationÌýof them.

Phase 1: CreatingÌýan EDPÌý

Natural England will prepare a draftÌýEDPÌýfor anÌýimpactÌýonÌýaÌýprotected species or site, or multiple species and sites,Ìýaffected by developmentÌýin a specificÌýarea.ÌýThe draft EDP will use the bestÌýavailableÌýscientific evidence and be developed with local partners.

Each EDP will include:Ìý

• aÌýdefinition of the environmentalÌýfeature(s)Ìýcovered by the EDPÌý(such asÌýa protected speciesÌýor site)Ìý
• theÌýenvironmentalÌýimpactsÌýofÌýdevelopment on these featuresÌýthat the EDP will addressÌý
• clear mapsÌýsettingÌýout the area covered by the EDPÌý
• the scale and type of development the EDP can supportÌý
• theÌýconservation measuresÌýwhichÌýwillÌýbeÌýdeployed toÌýaddressÌýthe impact of developmentÌýonÌýthe describedÌýenvironmental featuresÌýacross the given areaÌý
• where the environmental feature is a protected species, the terms of the licence that will be treated as having been grantedÌýand alsoÌýhow any such licence meetsÌýthe species licensingÌýtests derived from international lawÌý
• aÌýcharging scheduleÌýthatÌýwillÌýincludeÌýcoveringÌýthe costs of the conservation measuresÌý- developers will pay this to meet the relevant legal obligationsÌýassociated with the impacts addressed by the EDPÌý

The draft EDP will go through aÌýminimumÌý28ÌýworkingÌýday public consultation, giving stakeholders and the local community an opportunity to comment.ÌýNatural England will consider feedback from the consultation before both the final draftÌýEDPÌýand the consultation responses are passed onto the Secretary of State.

On receipt, the Secretary of State will consider the draft EDP and, in particular, whether the effect of the conservation measures will materially outweigh the negative effects of development on the conservation status of each identified environmental feature by the EDP end date. Only if they are satisfied that this is the case can they approve the EDP and it will come into effect.

Phase 2:ÌýUsing an EDPÌý

The process forÌýeach EDP will vary slightlyÌýdepending on the specificÌýtype of development and the consenting regimeÌýto whichÌýit applies.ÌýThe general process is as follows.

• When an EDP comes into effect, developers will be able to useÌýan onlineÌýplatform toÌýobtainÌýan estimate of the levy they would need to pay if they used the EDP.

• The overwhelming majority ofÌýEDPsÌýare expected to beÌývoluntaryÌýand developers can choose whether to opt for their development to utilise it.ÌýThey will then be able to request inclusion within the EDP from Natural England.ÌýIn exceptional circumstances it is possible for EDPs to beÌýmandatoryÌýbutÌýthe Secretary of StateÌýwill onlyÌýmakeÌýsuch EDPs where Natural England has satisfied them that it is necessary.

• OnceÌýapproved,Ìýthe EDP can beÌýrelied onÌýby developersÌýin a planning application in place of the requiredÌýhabitatsÌýassessmentÌýor species licence (as relevant)Ìýfor theÌýenvironmental featureÌýincluded.

• Once planning approval is grantedÌýthe developer is committed to pay the levy.ÌýThis gives local authorities confidence that theirÌýobligationsÌýwill be fulfilled through the EDP.Ìý

During the consideration of a planning application,Ìýlocal planning authorities are expected to apply any planning conditions set out in the EDP which the developer is using.ÌýTheÌýlocal planning authorityÌýwill work closely with Natural England where the wording of that condition is notÌýappropriate toÌýtheÌýparticular developmentÌýbeing considered.ÌýDevelopers will need to pay the nature restorationÌýlevy to a timetable agreed with Natural England, for instance once development has begun, and following the charging schedule.ÌýNatural England will use this money to deliver the necessary conservation measures.Ìý

Once an EDP comes into effect,ÌýNatural EnglandÌýwillÌýengageÌýwithÌýnature recovery and servicesÌýpartners who have expressed interest during pre-market engagement andÌýwillÌýrunÌýa clear and open tendering processÌýfor the delivery of conservation measures.Ìý

PhaseÌý3: Reporting and monitoringÌý

Throughout an EDP’s duration, monitoring will play a critical role in providing the scientific evidence and confidence that conservation measures are achieving the desired effect.ÌýNatural EnglandÌýisÌýrequiredÌýtoÌýpublish organisational annual reports, which willÌýprovideÌýa high-level view of NRF progressÌýincluding the amount of money received and spent under each EDP. These will be accompanied by EDP-specific reportsÌýpublished at the mid-point andÌýend-pointÌýof an EDP. These willÌýshow the delivery of conservation measures and whether they are on track to achieve the desired positive environmental outcomes.Ìý

These measures will be delivered over the duration of the EDP. Through this careful monitoring, Natural England will ensure that conservation measures under each EDP materially outweigh any negative impact of developmentÌýrelying upon theÌýEDP.ÌýWhere monitoring shows these measures are insufficient, Natural England will ensure backup measures are deployed.Ìý

Where necessary, maintenance will continue beyond the EDP’s end dateÌý(and for as long as needed)Ìýto deliver the environmental benefits set out in the EDP. In these cases, monitoring may remain in place. This will provide the Secretary of State with confidence that the overall improvement test has been achieved.

The Secretary of State has the power to amend an EDP, meaning where they are not confident the overall improvement test will be achieved, they can amend the EDP to make it achievable by the EDP end date.

The Secretary of State must publish a statement if an overall improvement has not been achieved by an EDP end date or at EDP revocation. This statement must set out the proportionate remedial actions that will be taken to secure the overall improvement.

OurÌýimplementation plansÌý

This section sets outÌýhow we willÌýdeliverÌýtheÌýNRF.ÌýIt covers:Ìý

• our approach to developing and delivering the NRF
• secondary legislation
• the plan for EDPs
• NRF implementation timeline

Approach to developing and delivering the NRF

The following principles will guide the development and delivery ofÌýthe NRF.Ìý

DrivingÌýnatureÌýrecoveryÌýthroughÌýan evidence-basedÌýapproach

Natural England will use robust ecological evidence, scientific literature, research and data to model, the impacts of development pressures and identify effective conservation measures. This evidence-led approach will support nature recovery by drawing on best practice from existing schemes and make use of the best available scientific evidence for preparing, amending or revoking an EDP.

Unlocking growthÌý

The NRF will be about unlocking a win-win for the economy and nature. This means focusing on issues andÌýimpactsÌýthat will unlock sustainable development, introducing tools such as new digital systems whichÌýwillÌýstreamlineÌýprocesses.ÌýThese improvements will unlock growth andÌýdeliver on nature recovery.Ìý

Engaging nationally and locallyÌý

Engagement with stakeholders will be a central part of developing each EDP. Natural England will work closely with stakeholders throughout the process. This willÌýensure transparency, gather insights, and build understanding ofÌýeachÌýEDP’s purpose and content. This approach ensures that EDPs are informed by local context and priorities whileÌýmaintainingÌýconsistency with national standards and statutory requirements.ÌýAs part of this,Ìýall EDPs will also be subject to public consultation.Ìý

SupportingÌýNature Markets

Private and third sector providers will play an essential role in delivering the conservation measures set out within EDPs. Through the NRF, the government is looking to strengthen and grow a clear, predictable market for nature recovery and nature services. Natural England will ensure conservation measures are delivered through a combination of direct delivery and fair and open competition. This will be in line with all applicable public sector rules around transparency and equal treatment of suppliers. You can learn more about how NRF delivery will impact suppliers on this .

Restoring nature for communitiesÌý

Natural England willÌýseekÌýto enhance public access to nature through EDPsÌýwherever possible. This willÌýcreateÌýmore opportunities for people to experience and enjoy created and restored landscapes.Ìý

CloselyÌýmonitoringÌýimpact

Natural England will monitor and evaluate both the effectiveness of individual conservation measures and the overall impact of EDPs. This will ensure that there is an overall improvement in the conservation status of the protected site and/or species, and the overall improvement test is therefore met.

Secondary legislationÌý

The core legal frameworkÌýto deliver the NRF is contained within the Planning and Infrastructure Act.ÌýHowever, theÌýgovernmentÌýis required by the ActÌýto make secondary legislation (in the form of regulations) to add further detail to some provisions and toÌýgive full effect toÌýthe Act’s measures.ÌýThis includes:Ìý

• levy regulations – these will set out how the levy (a charge paid by developers) will operate and how charging schedules will work for each EDP.

• prioritisationÌýregulationsÌý– these willÌýsetÌýoutÌýtheÌýappropriate prioritisationÌýof theÌýdifferent waysÌýof addressing a negative effect of development on a protected species,Ìýor on a protected feature of a protected site.Ìý

TheÌýplan forÌýEDPs

TheÌýNRFÌýallowsÌýtheÌýgovernmentÌýto take a phased approach to developing and making EDPs.ÌýGovernment’sÌýplan for the first EDPs is to focus onÌýenvironmental impacts where:Ìý

• TheÌýcurrentÌýsystem is causing delays and blockages to development.Ìý
• There is aÌýrobust evidence baseÌýsupporting the benefits of a strategic approachÌýfor nature.
• Natural EnglandÌýhave a wealth of existingÌýexpertiseÌýso EDPs can be delivered at pace.Ìý

On this basis,Ìýthe first EDPs will coverÌýnutrient pollution.

NutrientÌýpollution

This government made a commitment that it would ‘implement solutions to unblock the building of homes affected by nutrient neutrality without weakening environmental protections’. Nutrient pollution is a significant environmental issue for many of our most important places for nature in England. In freshwater habitats and estuaries, increased levels of nutrients (especially nitrogen and phosphorus) can speed up the growth of certain plants and algae, impacting wildlife. As a result, residential developments have been required to achieve ‘nutrient neutrality’ where protected sites are in unfavourable condition due to excess nutrients. While this has provided important protection of these sites, it has also had a significant impact on the scale and speed of development in these areas, affecting approximately 16,500 homes per year.

To addressÌýthisÌýissueÌýand deliver our manifesto commitment, theÌýfirst EDPs will coverÌýdevelopers’Ìýobligations related toÌýnutrient neutrality.ÌýNatural EnglandÌýare currently exploring the benefits of developing EDPs for the followingÌýcatchments whereÌýthereÌýisÌýsignificant pressure from development:Ìý

• Peak District DalesÌý
• Poole HarbourÌý
• River AvonÌý
• River AxeÌý
• River CamelÌý
• River ClunÌý
• River EdenÌý
• River KentÌý
• River LambourneÌý
• River LuggÌý
• River MeaseÌý
• Solent (including River Itchen)Ìý
• Somerset Levels and MoorsÌý
• StodmarshÌý
• TeesmouthÌýand Cleveland CoastÌý
• The Broads (including River Wensum)Ìý

Natural England’sÌýexistingÌýNutrient Mitigation Scheme will transition to the relevant EDPÌýwhenÌýitÌýbecomes available. However,Ìýexisting third-party led mitigation schemes can continue to sell nutrient credits directly to developers. Developers may also continue to propose bespoke mitigation plans under the existing regulatory system.Ìý

WhetherÌýlocal authority nutrient mitigation schemesÌýcontinueÌýwill depend on specific circumstances. Some may choose to fully transition to the EDP where available, whileÌýothers may continue toÌýoperateÌýwithinÌýthe existing system alongside EDPs. Natural EnglandÌýisÌýworkingÌýwith affected local authorities toÌýestablishÌýthe mostÌýappropriate arrangementsÌýfor their area.Ìý

The Government has committed to returning to Parliament once the first nutrient EDPs are made to issue a statement on theÌýinitialÌýlearnings from their development and implementation. It will only be after the House has seen this statement that a Secretary of State will make any further EDPs on other environmental issues.Ìý

Plans forÌýfutureÌýEDPs

The NRF is a huge opportunity to reframe the relationship between development and the environment. The government’s ambition is to expand it over time, introducing EDPs to cover other protected species and habitats.

AsÌýset out in the Planning and Infrastructure Act,ÌýNatural EnglandÌýwill only make EDPs where there is robust evidence to support a strategic approach and whereÌýtheyÌýhave confidence that conservation measures will deliver a material improvement for nature.ÌýTheÌýgovernmentÌýintendsÌýtoÌýprioritiseÌýEDPsÌýbased onÌýan assessmentÌýof where requirements related to protected species and habitatsÌýhaveÌýthe greatest impact on development.

Natural England will work closely with local authorities, developers, environmental groups and other stakeholders to gather and assess the data needed to underpin each EDP.

District Level Licensing

Great crested newt populations have declined dramatically over the last 60 years, despite being protected under UK and EU law. District Level Licensing (DLL), introduced in 2016, has helped reverse this trend. It has shifted the focus of investment so that over 80% of funding now goes into creating and restoring ponds, and monitoring and maintaining them for 25 years.

Through utilising the robust DLL evidence base, Natural England will start preparatory work for great crested newts on how best the strategic approach taken under DLL could be transferred into the NRF. This could help DLL secure the benefits of streamlining processes and introducing a digital service. We will also build on the lessons presented to Parliament on the first nutrient pollution EDPs before any future EDPs are made.

Further detail on plans for potential great crested newt EDPs will be shared in due course.

Implementation timeline

Winter 2025

Launch pre-market engagement with private sector, nature recovery and nature services providers. Begin stakeholder engagement on the first EDPs. Develop secondary legislation to support implementing the NRF, including for the design of the levy.

Spring and Summer 2026

User test the NRF digital service. Draft guidance for NRF service users, private sector providers and regulators. Lay secondary legislation for the nature restoration levy before Parliament. Begin formal consultation on first nutrient pollution EDPs. Publish guidance and provide support and skills training for Local Planning Authorities and developers. The first EDPs will go live when the above steps are complete, consultations have been carried out, and the Secretary of State has approved those EDPs.