Our natural capital practice

Lux Nova is a pioneer in the legal agreements which support nature markets. These contracts at the same time (i) generate nature and climate benefits, (ii) provide revenue for farmers and landowners, and (iii) allow developers to build. They relate to the creation, protection and sale of biodiversity, nutrient, carbon and other nature credits.

Generally acting for landowners, Lux Nova has negotiated, drafted and (crucially) completed natural capital agreements on multiple projects. We represent some of the largest and most forward-thinking environmental projects in England. Our clients are among the first landowners to actually generate income from the sale of biodiversity units and other nature credits. For all the excitement around natural capital and its potential, these deals have only become a reality recently - Lux Nova has advised clients on many of them.

This direct experience sets Lux Nova apart, as does its independence and its values. A boutique law firm focused on clean energy and the environment, Lux Nova has a specialism in natural capital agreements and typically works alongside clients’ existing advisers. We are also a values driven law firm, which believes in protecting the environment and fighting climate change. Lux Nova only acts for clients with corresponding principles.

  • Natural capital is ‘The habitats and ecosystems that provide social, environmental and economic benefits to people’ (Ecosystems Knowledge Network). In practice, this means the soil, trees water and air that society relies on. 

    Historically, natural capital has been taken for granted and for free. But, in the context of the climate change emergency, there is growing consensus that those providing natural capital (farmers and landowners) should be rewarded for doing so and those that use natural capital (everyone in society, but developers and industry especially) should pay for it. A natural capital market – partly mandatory and partly voluntary - is emerging to meet this need.

    • Conservation covenants for biodiversity net gain (BNG)

    • Section 106 agreements for BNG and nutrient credits

    • Credit sale, allocation and option agreements for biodiversity units and nutrient credits

    • Broker agreements for biodiversity units

    • Managed services agreements for BNG

    • Collaboration agreements and corporate structuring

Our Natural Capital Clients

Wendling Beck Project: 1,000-hectare nature restoration and biodiversity enhancement project in Norfolk funded primarily through sale of ‘biodiversity units’ and ‘nutrient credits to developers pursuant to ‘biodiversity net gain’ and ‘nutrient neutrality requirements under planning law. The project is led by four farmer/landowners, in a collaboration with the Norfolk County Council, Norfolk Wildlife Trust, Norfolk Rivers Trust, Norfolk FWAG, Anglian Water and The Nature Conservancy.

  • Negotiated a conservation covenant with RSK Biocensus (as responsible body) for biodiversity units and supporting site registration as a habitat bank.

  • Negotiated a section 106 agreements with Breckland Council for nutrient credits.

  • Negotiating the sale of nutrient and biodiversity credits to various developer including house-builders and utility companies.

Iford Estate: 1,200-hectare nature restoration project in West Sussex led by a large farming business.

  • Negotiated a biodiversity net gain section 106 agreement with South Downs National Park Authority, plus supporting commercial agreements, co-ordinating with specialist planning law firm Town Legal.

  • Ongoing work a further section 106 agreement and associated biodiversity unit sale and option agreements.

We act for a number of other landowners and farming businesses in ongoing confidential matters.

Our Natural Capital team

David Short leads the Lux Nova natural capital team, assisted by Henry Vane.