Part 6: Nature and Biodiversity Section 101: Biodiversity credits
Subsections (1) to (5) make provision for the Secretary of State to set up a system to sell a supply of statutory biodiversity credits to the habitat compensation market. The provision of statutory credits will be made in England only. The sold credits will be equivalent to a specified gain in biodiversity value, which will be eligible for inclusion in a biodiversity gain plan. Subsection (3) sets out the arrangements that may be made for the scheme and the operation of the scheme. Subsection (4) requires the Secretary of State, in considering the price of a biodiversity credit, to set this at a level that does not discourage the development of local market schemes and non-credit habitat creation projects. The government intends to conduct a further review of the price of units, following engagement with stakeholders, before setting a price. The intention is that the price of biodiversity credits will be higher than prices for equivalent biodiversity gain on the market. Subsection (5) will require the Secretary of State to make information on the price of the units and their operation publicly available.
	Subsection (6) sets the framework that the Secretary of State must consider when handling the proceeds of the credits. Proceeds from the sale of credits will contribute to strategic ecological networks and provide long-term environmental benefits, and would be additional to existing requirements. This framework includes a provision that funds collected via this mechanism must be used for the purpose of securing biodiversity gain. Subsection (7) makes provision to exclude works to enhance habitat from the system where there is an existing requirement for the Secretary of State to act – for example, where land is subject to alternative legislative requirements such as where a public body manages a Site of Special Scientific Interest. Through the Wildlife and Countryside Act 1981 (as amended), public bodies have a duty to take reasonable steps to further the conservation and enhancement of the special features of Sites of Special Scientific Interest.
	Subsections (8) to (10) require the Secretary of State to report on the operation of the biodiversity credit system on an annual basis. This includes setting out the total funding received and how this has been spent in securing habitat enhancement, which should include an assessment of the value of created habitats in terms of biodiversity units.