United States In the United States, a
mitigation banking process applies to impacts on wetlands and other aquatic habitats like streams. This involves a mitigation sequence, which requires that developers firstly avoid harm to
wetlands, but if harm is considered unavoidable, then
wetland habitat of similar function and values must be protected, enhanced, restored, or created to compensate for those that will be damaged. The process comes under the section 404 of the
US Clean Water Act 1972, the
US Army Corps of Engineers regulations and the commitment to
"no net loss" of wetlands habitat. As part of mitigation banking, compensation for impacts to
river banks, known as "stream
riparian zones", may be required. Dedicated stream mitigation banks may be established for compensate for impacts to streams, such as loss of ecological and hydrological functions. In practice, impacts might result from activities like
sedimentation,
channelization,
dredging, or similar activities. They might also come from agricultural activities or addition of structures to the river bank, such as concrete or
rip rap. The suitability of using mitigation banking to compensate for these impacts will depend on the amount of the river bank (considered in terms of "linear distance" in feet) that is impacted - there must be the potential to enhance or restore at least 4,000 linear feet (1219.2 meters) of
degraded first or second order streams to establish a stream mitigation bank. Conservation banking (also called species banking) is another form of biodiversity banking used in the United States. It is used to compensate for impacts on species of special concern, typically those that are listed by state and federal agencies under the U.S.
Endangered Species Act or its state-based equivalent. The wetland mitigation banking system inspired the development of conservation banking in California in the mid-1990s but, unlike mitigation banking, conservation banking does not require "no net loss".
Australia At least two biodiversity banking schemes have been set up in Australia as a framework for
biodiversity offsetting. Biodiversity offsetting is required under the federal
Environment Protection and Biodiversity Conservation Act and state guidelines for offsetting. Biodiversity banks were established on the state level based on regulations from state governments - for example, New South Wales' now defunct BioBanking Scheme set up in 2008 and the BushBroker scheme in Victoria.
BioBanking in New South Wales The BioBanking ('Biodiversity Banking and Offsets') scheme in New South Wales started in July 2008 with the aim of achieving no net loss (or a net gain) of biodiversity but has since been replaced by a 'Biodiversity Offsets Scheme' under the state Biodiversity Conservation Act 2016. BioBanking was run by the state government's
Department of Environment and Climate Change as a voluntary market for biodiversity credits that could be applied as part of the planning process. Credits were created by landowners by establishing "biobanks" sites where they committed to conserving biodiversity. The credits represented improvement in biodiversity through conservation activities at the site and could be sold by the landowner for income and to fund the continued management of the biobank. The biodiversity credits under the system included ecosystem credits and species credits.
Native Vegetation Management in Victoria In Victoria, the clearing of native vegetation is regulated under the
Native Vegetation Management Framework. To regulate vegetation clearing, the BushBroker biodiversity banking scheme was set up in 2006 with the initial aim of net gain and later adoption of a no net loss aim.
Canada Canada has a policy to offset loss of fish and fish habitat through
habitat banking, under the
Fisheries Act. According to the act, "no person shall carry on any work, undertaking or activity, other than fishing, that results in the death of fish" and "no person shall carry on any work, undertaking or activity that results in the harmful alteration, disruption or destruction of fish habitat". Habitat banking is a tool used to offset negative impacts of potential projects or development activities on fish (or their habitats), in advance of impact occurrence, by
restoring, enhancing, or creating fish habitat by completing conservation projects. Creation, restoration, and enhancement of habitat continues at Port Fraser - with creation, restoration, and enhancement of 15 hectares of fish and wildlife habitat since 2012, according to the
Port Authority, to offset the effects of port development. Across Canada, the majority of offset projects are aquatic, including 43% in wetlands, 33% in streams, and 22% in rivers. Further research is needed to determine a clear picture of the success of habitat banking in achieving no net loss of biodiversity and ecosystem functions in Canada. A 2006 analysis found that 25% of habitat banking projects achieved no net loss of habitat productivity, while 12% achieved a net gain. Compliance with monitoring requirements was also found to be low - it was difficult to determine the effectiveness of projects in achieving no net loss.
Colombia Biodiversity banking has been implemented in Colombia since 2017, when the first habitat banks were registered there. Habitat banking is allowed as a mechanism for
biodiversity offsetting through the purchase of biodiversity credits from habitat banks. The first habitat bank to be established in Colombia was the El Meta Habitat Bank. The bank had been issued 600 biodiversity credits, all of which have since been sold. The
Ministry of Environment and Sustainable Development released habitat banking regulations in June 2017 under Resolution No. 1051. It is thought that habitat banks could be used as a way to fund achievement of conservation goals (such as the National Biodiversity Strategy) while providing income and jobs for land owners and local communities.
United Kingdom Habitat banking is being developed in England, as part of a Biodiversity Net Gain policy implemented in February 2024. The BNG policy requires a 10% net gain in biodiversity levels at a development site, measured using a 'Statutory Biodiversity Metric'. Habitat banks are suggested by
Natural England as an off-site method for delivering biodiversity gains in advance of losses by creating and enhancing habitat, both on public or private lands. Credits generated from habitat restoration at these banks can then be purchased by developers as a way to achieve a 10% gain, if it is not possible to do on the site. According to the
Department for Environment, Food, and Rural Affairs, the land for a habitat bank must be secured using a conservation covenant or planning obligation, which acts as a legal commitment to managing the habitat for at least 30 years. A management and monitoring plan is then agreed between the landowner and a regulatory body, before the land can be added to a public register of biodiversity gain sites and sell credits to developers. According to
Devon County Council, one of the first registered habitat bank in England was established in the county at Duryard Valley Park near Exeter in March 2024. Other examples include habitat banks in
Heacham and
Doncaster. == Challenges ==