In recent years, the publication of advice by Natural England has meant that in increasingly large areas of the country it has become necessary to demonstrate nutrient neutrality as a means of mitigating the environmental impact of development projects. With significant areas of the county impacted by this advice, Norfolk has been at the forefront of implementing a system of nutrient neutrality credits to ensure sustainable development can take place, whilst satisfying current regulations.
The requirement to demonstrate that new development within the catchments of certain protected sites is nutrient neutral arises through the operation of the Conservation of Habitats and Species Regulations 2017 (the “Regulations”). However, it only began to affect Norfolk substantially following guidance issued by Natural England in 2022.
The Regulations make it unlawful to grant consent for a “plan or project” until it has been ascertained to a high degree of certainty that the “plan or project” will not adversely affect the integrity of certain European protected sites. Where those sites are degraded due to pollution by excess nutrients, the operation of the Regulations requires that any new development does not increase the levels of the relevant nutrients, such as nitrogen and phosphorus, in the catchments of those European protected sites.
Where a new development will increase the level of nutrient pollution, neutrality credits can be purchased as a form of mitigation, to offset that pollution. The introduction of such credits puts the onus on developers to take positive steps to offset the impact of their developments. The credits purchased are underpinned by projects which reduce other sources of nutrient pollution within the catchment, either through reducing the underlying sources of that pollution (e.g. reducing or preventing the application of fertiliser to agricultural land within a catchment), or by remediating the presence of such nutrients (e.g. watercourse management schemes). Participation in such schemes could be advantageous to landowners who are considering diversification projects to increase revenue.
Norfolk Environmental Credits
A prominent example of nutrient neutrality in action is the Norfolk Environmental Credits initiative. This joint venture company, established by partnership of local councils, offers developers the opportunity to purchase credits to offset the nutrient impact of their developments. The proceeds from the sale of credits fund projects reducing nitrogen and phosphorus levels in affected catchments, ensuring that development does not further contribute to degraded water quality.
Nutrient Mitigation Fund
A landowner in North Norfolk approached the Nutrient Mitigation Fund with a plan to explore several wetland sites. These wetlands were identified as potential areas for nutrient reduction measures. By investing in the creation and maintenance of these wetlands, the landowner aimed to achieve nutrient neutrality for their development project.
The wetlands serve as natural filters, trapping and breaking down nutrients before they reach larger water bodies. This process not only helps in reducing nutrient levels but also supports biodiversity by providing habitats for various species of plants and animals. The landowner’s project involved detailed planning and collaboration with environmental experts to ensure the wetlands were effectively managed and maintained.
Outcomes and benefits
The implementation of a system of nutrient credits in Norfolk has yielded several positive outcomes. First, it has facilitated the lawful grant of planning approvals and the continuation of development projects.
Second, the projects funded by these credits have delivered additional benefits beyond nutrient reduction. The wetland sites in north Norfolk not only support nutrient neutrality but also contribute to carbon sequestration and the enhancement of local biodiversity. This holistic approach to environmental management underscores the multifaceted advantages of nutrient mitigation initiatives.
The success of these initiatives has also inspired other regions to adopt similar approaches. By demonstrating that development and environmental sustainability can coexist, Norfolk has set a precedent for responsible development practices. The initiative has also fostered greater awareness and engagement amongst local communities, highlighting the importance of protecting water quality and preserving natural habitats.
Challenges and future directions
Despite some positive outcomes, the publication of Natural England’s advice has had significant impacts. There have been delays in the delivery of new housing in Norfolk as a result of the industry adapting to nutrient mitigation requirements. More than 16,000 homes across Norfolk were delayed with local planning authorities unable to grant planning approvals until developers were able to provide suitable mitigation measures. Through timely action, Norfolk’s Nutrient Mitigation Fund and Environmental Credit Scheme have enabled development to proceed. Such challenges are not unique to Norfolk and developers nationwide should be aware of similar hurdles and remain proactive by considering any environmental mitigation requirements early in the planning process.
It is important to ensure the long-term sustainability of the projects funded by neutrality credits. Continuous monitoring and maintenance are required to ensure that the projects continue to deliver the desired outcomes. There is a need for ongoing collaboration between developers, local councils, and environmental experts to address any emerging issues and adapt strategies as needed.
The successful implementation of nutrient mitigation solutions to meet the requirement of the Regulations in Norfolk has not been reflected across the country. In this context, the Planning and Infrastructure Act 2025 (the “Act”) promises significant reforms to the system including the introduction of environmental delivery plans and a Nature Restoration Levy (the “Levy”). These reforms should provide flexibility to developers, allowing them to pay the Levy instead of securing development-specific mitigation measures. However, there is uncertainty on the timeline for implementation for such reforms given the need for further secondary legislation, however the Government has laid out an implementation timeline, with a clear focus on EDPs to deal with nutrient pollution. Whilst the Act has made it through Parliament, this was not without significant opposition, with suggestions that it favours development over nature recovery.
Consequently, future solutions need to be structured in a manner that will fit in with the new regulatory framework. Fortunately, Norfolk projects are already adapting to this challenge to secure a positive environmental impact without preventing much needed development.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at January 2026.