Trading Platform Contract for Solent Nutrient Trading Pilot Project

Background

Defra, working with agencies and MHCLG, is delivering an innovative nutrient trading pilot project in the Solent area over two years (2020-2022). The Solent is home to a range of nationally and internationally important habitats and bird species for which it has been designated. However, many of these sites are in unfavourable condition due to excess nutrients (particularly nitrogen) in the water from a range of sources, including agriculture and wastewater. NE has advised local planning authorities that demonstrating 'nutrient neutrality' (i.e. zero net impact on nitrogen pollution of the protected sites for 80+ years) is a way of allowing development to proceed, while ensuring it does not further damage the condition of the protected site features. This can be achieved through various means, including by securing proportionate nitrogen reduction elsewhere in the catchment by taking land out of intensive agricultural use and creating habitat for wildlife. NE has published a 'nutrient neutral' method and calculator and actively advises local authorities and developers.

There is an estimated backlog of at least 5,500 houses (at least partly due to nitrogen pollution) across the Solent catchment awaiting planning permission; a lack of offsite mitigation has meant some developments have struggled to demonstrate 'nutrient neutrality'. The Authority is piloting a nutrient trading process to enable developers and local planning authorities in need of nitrogen pollution mitigation solutions to connect via an online platform with farmers and land managers able to provide such solutions. For example, farmers who are willing to take some of their land out of intensive agricultural production and commit it to woodland or wetland for at least 80 years. The pilot, funded through Government's Shared Outcomes Fund, will test the feasibility and cost effectiveness of this approach, using a trading process, and explore how multiple benefits for people and nature