The Nature Restoration Fund: Government publishes guidance on Environmental Delivery Plans, the Nature Restoration Levy, and the Nature Restoration Fund
In our earlier article, we summarised Part 3 of the Planning and Infrastructure Act 2025 (the Act) and explained the framework it established for a wholly new approach to nature recovery. On 1 September 2026, the Government published new, detailed guidance on how the framework will work in practice. This article examines that guidance and what it means for developers, local planning authorities and practitioners.
Background
Part 3 of the Act introduced three new tools to deliver a step-change in how developers must address the environmental effects of their developments:
- Environmental Delivery Plans (EDPs);
- A Nature Restoration Levy; and
- A Nature Restoration Fund.
The aim of the new framework is to enable developers to address environmental obligations more efficiently by providing them with an option to pay into the Nature Restoration Fund (NRF). Paying into the NRF will relieve developers of certain obligations relating to protected species and protected sites, with Natural England then taking responsibility for delivering strategic conservation measures. The Government has been clear that the NRF is designed to deliver more for nature, not less, by moving from project-by-project mitigation to strategic conservation measures.
Environmental Delivery Plans
What are EDPs?
EDPs are plans prepared by Natural England and made by the Secretary of State, setting out conservation measures to address the environmental impacts of specified development in defined geographical areas.
Each EDP will cover:
- the geographic area covered by the EDP;
- the types of development that may use it;
- the environmental impacts it addresses;
- the total development capacity it applies to;
- the timeframe in which the EDP can be used (with a maximum duration of 10 years under the Act); and
- the levy rate that will apply to eligible development.
How will developers know if an EDP applies to their development?
When an EDP comes into effect, developers will need to identify whether their development falls within an area covered by the EDP. An online platform can be used to obtain an estimate of the levy that would be needed to be paid if the EDP is used.
The majority of EDPs are expected to be voluntary and developers can choose whether to opt in for their development to utilise it. If they do, and if the EDP has enough remaining capacity for such development, the EDP can be relied on in a planning application in place of the required habitats assessment or species licence (as relevant) for the environmental feature included.
However, in some circumstances, the Secretary of State may make an EDP mandatory, such as when a bespoke EDP is designed for a specific large-scale project. Where an EDP is mandatory, developers will not be able to use existing alternative routes to address the impacts covered by that EDP.
The measures set out in an EDP will then be funded through payment of the nature restoration levy (set out in a charging schedule in the EDP).
Conservation measures and the overall improvement test
EDPs will set out the conservation measures that Natural England will deliver using levy funding. These measures must pass the overall improvement test for the Secretary of State to make the EDP. For this to be passed, the conservation measures must be designed to “materially outweigh the environmental impacts of the development using the EDP”.
Importantly, the Act requires each EDP to include back-up conservation measures that must be deployed if monitoring shows that the initial measures are not having the expected effect.
EDP consultations
Each draft EDP will go through a public consultation, with the draft EDP available to read online throughout the consultation period. The Act specifies a minimum consultation period of 28 working days. Once a final EDP has been made, it will be published on GOV.UK.
The first draft EDP has now been published for consultation. It addresses nutrient pollution affecting the Broads Special Area of Conservation (SAC) (Yare and Bure), Broadland Ramsar and River Wensum SAC in Norfolk.
Alongside the draft EDP itself, Natural England has published a consultation guide, supplementary information on the conservation measures evidence review methodology, and supplementary information on the process for developers. The latter includes draft templates of several key documents in the levy process, including the Commitment Certificate, Assumption of Liability Notice, Liability Notice and Outline Instalment Plan.
The draft EDP and supporting documents can be found here.
The Nature Restoration Fund
What is the NRF?
The NRF provides developers with a new route to discharge certain environmental obligations relating to protected sites and species. Instead of undertaking project-level assessments and site-specific mitigation, developers can opt (where an EDP is voluntary) to pay the nature restoration levy. Levy payments are pooled into the NRF and used by Natural England to deliver strategic conservation measures.
Where the levy is paid, specific obligations (such as obligations under the Habitats Regulations) will be disapplied if the relevant impacts are covered by that EDP.
Where an EDP is voluntary, developers may continue to rely on existing routes. Any impact falling outside the scope of the EDP must still be addressed through the usual environmental assessment processes (such as a habitats regulations assessment (HRA)).
Biodiversity net gain and the NRF
The guidance confirms that mandatory biodiversity net gain (BNG) will not be affected by the NRF, and that developers must continue to comply with BNG obligations even where the levy is paid.
Using the Nature Restoration Levy
The guidance sets out a detailed process for developers wishing to use the levy.
- Quote: Once an EDP is in force, developers can obtain a quote using the nature restoration levy service. The quote is calculated using information provided by the developer and details in the relevant EDP. In obtaining a quote, a developer is not committed to using the levy. Multiple quotes can be obtained.
- Request to use the levy: Before submitting a planning application, a developer may request to Natural England to use the nature restoration levy. This confirms the developer's intent to use the levy rather than addressing impacts via existing routes.
- Confirmation from Natural England: Natural England will confirm whether the development is eligible under the EDP, there is sufficient remaining capacity, and the information provided is complete.
- Commitment certificate: If Natural England accepts the request, they will issue a commitment certificate to the developer and update the EDP capacity to reflect the allocation.
- Planning application: This certificate must be submitted to the local planning authority (LPA) when the developer submits their planning application. This confirms to the LPA that the environmental impact of the development covered by the relevant EDP can be disregarded for the purposes of certain environmental obligations. The commitment expires after 6 months if not submitted with a planning application.
- Assuming liability: Where planning permission has been granted for a development using the levy, liability to pay must be assumed before development can begin. Liability must be assumed for the whole relevant development. An assumption of liability notice must be submitted to Natural England. Once liability has been assumed or imposed, Natural England will register it as a local land charge. Liability can be transferred to another person with their consent.
- Paying the levy: Natural England will invoice the liable person (or the lead developer where multiple persons are jointly and severally liable). Before development can begin, the developer must pay either (a) the levy in full, or (b) the first instalment (where instalment payment has been agreed). On payment in full, the liability is discharged and Natural England will remove the local land charge.
- Pre-commencement condition: There will be a statutory pre-commencement condition to be attached to any planning permission for development using the levy. The condition requires payment of the levy (either in full or the first instalment) before development can commence. On receipt of payment, Natural England will inform the relevant planning authority and developer that the levy has been paid, and the planning condition has been met. The relevant EDP may also specify further conditions which the decision maker will be expected to apply.
The NRF and the Planning Application Process
This is a critical element of the guidance for local planning authorities.
The guidance provides that, “where an environmental impact is covered by an EDP and the planning applicant has a valid nature restoration levy commitment, the local planning authority (LPA) does not need to consider that impact through the usual processes — such as carrying out an appropriate assessment”.
However, the LPA must still consider:
- any environmental effects that are not covered by the EDP; and
- all other relevant planning and environmental legislation.
The Government has indicated that more detailed information will be provided in due course ahead of the first EDP coming into force.
Enforcement, Surcharges and Appeals
The guidance on enforcement sets out a graduated regime of consequences for noncompliance.
Surcharges
Natural England can impose surcharges in specified circumstances (summarised in the table below):
| Trigger | Surcharge amount |
| Failure to assume liability before development begins | The greater of 2% of the levy amount, or £300 |
| Late payment — 30 days overdue | 5% of the levy amount (minimum £300) |
| Late payment — 6 months overdue | A further 5% of the levy amount (minimum £300) |
| Late payment — 12 months overdue | A further 5% of the levy amount (minimum £300) |
| Failure to notify Natural England of material changes in development | The lower of £300 or 30% of the levy amount |
No surcharge is imposed where the total levy amount is less than £1,000.
Where the details of the development that informed the levy calculation have changed, the liable person must notify Natural England so that the levy can be calculated accordingly. Failure to notify Natural England of a material change will result in a surcharge, which will be the lower of £300 or 30% of the levy amount and will only apply where the recalculated levy exceeds the original amount by at least £300.
Interest accrues on overdue amounts at 2.5 percentage points above the Bank of England base rate.
Stop notices
Where development has begun but there is an overdue outstanding levy payment, Natural England has the power to issue a stop notice. It must first issue a warning notice giving the liable persons between 3 and 28 days to make payment. Where a stop notice is issued, development on site must stop (other than works necessary for health and safety).
Reviews and appeals
A liable person may request a review if they believe there has been an error in calculating the levy amount or apportioning levy liability. The review request must be submitted within 28 days of receiving the liability notice, and Natural England must respond within 21 days.
Importantly, while a review is being considered, levy payments do not need to be made and cannot become overdue.
If the liable person is dissatisfied with the outcome of a review, they may appeal to the Secretary of State. Appeals may also be brought against surcharges, interest, and the issue of warning or stop notices. As with reviews, no levy payments are required while an appeal is pending.
Comment
The publication of this guidance gives developers, LPAs and practitioners a clear view of how the EDPs, the nature restoration levy and the Nature Restoration Fund will operate in practice. The regime has the potential to replace project-by-project mitigation with a streamlined, strategic approach to environmental conservation, offering developers greater certainty and reduced exposure to legal challenges on environmental grounds. However, these benefits can only be realised once EDPs are in place and they also require Natural England, LPAs and other stakeholder bodies to be appropriately funded and resourced to ensure the promised environmental improvements actually come forward. Affected parties should also engage actively in the consultation process as draft EDPs are published.
Resources
The Government has published the following guidance:
