The Impact of Investment Zones on Local Ecosystems

A new programme from the Department of Levelling Up, Housing, & Communities has put forward the idea of Investment Zones (IZs). These zones present new opportunities for developers to create housing and other infrastructure – but what of the environmental impacts of these builds?

At The Habitat Restoration Co., we believe in creating a net positive for the environment and protecting local ecosystems across the country with good land management and biodiversity preservation. In this article, we’ll discuss Investment Zones – what they are, where they are, and the impact they could have.

Improve the impact of your developments with our habitat restoration and advisory services. Contact us today.

What are Investment Zones?

Investment Zones are defined as “areas across the UK where central and local governments will work with business and local partners to create the conditions for investment and innovation.” The guidance goes on, stating that these zones are intended to improve growth within the private sector and create more jobs for the country.

While a number of safeguards for tax, planning, and business support are at the forefront of these zones, environmental concerns have been seemingly thrown aside. This is a particular concern, as many of the target areas for Investment Zones include of extreme import for ecosystems, the environment, and our natural heritage. Some areas that could be affected are:

  • National parks
  • Areas of Outstanding Natural Beauty
  • Sites of special scientific interest
  • World Heritage Site buffer zones
  • Green belts

With much of our natural world on the chopping block, it is important to know where Investment Zones are expected to arise – and what can be done to ensure a net positive for biodiversity in the environment.

Where are the Proposed New Investment Zones?

There are a number of proposed areas for Investment Zones, scattered across England, Wales, and Northern Ireland. The government has committed to the introduction of 13 Investment Zones spanning across the entirety of the UK. As of May 2024, only six of these have been finalised so far, in:

  • Greater Manchester
  • Liverpool City Region
  • North East
  • South Yorkshire
  • West Midlands
  • West Yorkshire

However, there are more places to come. Further zones are in motion for the East Midlands and Tees Valley, home to a number of nature reserves that could be impacted by the proposed developments.

Finally, Scotland, Wales, and Northern Ireland all have their own Investment Zones as well. These would be in:

  • Glasgow City Region
  • North East Scotland
  • Cardiff and Newport
  • Wrexham and Flintshire

Alongside an “Enhanced Investment Zone” for Northern Ireland. Each of these areas are surrounded by tourist attractions, places of natural beauty, and important wildlife reserves, so developments in the area need to be held under the microscope to ensure their impact is positive.

Legally Protected Areas: SACs and SPAs

Special Areas of Conservation (SACs)

Special Areas of Conservation, or SACs, are protected under the Habitats Regulations. Within these areas are flora and fauna (excluding birds) which are in most need of conservation throughout Europe. After Brexit, the UK’s own habitat laws changed, but there are still significant restrictions that affect any development that could impact these areas.

Special Protection Areas (SPAs)

SPAs, on the other hand, are Special Protection Areas. These are protected sites that are designed to safeguard rare and vulnerable birds, as well as regular migratory species. These are classified and protected in accordance with the EC Birds Directive.

Irreplaceable Habitats

Under the UK’s 2024 habitat regulations, there are a number of habitats categorised as “irreplaceable”. The list of these can be found here. This shows a continued awareness of our natural world and the steps we need to take to protect it, along with places that cannot simply be recovered if built over.

Biodiversity Net Gain (BNG)

As of February 2024, a Biodiversity Net Gain (BNG) of at least 10% is a mandatory requirement for developers in the UK. This means that any development needs to deliver a better, larger, or higher-quality habitat than existed before it’s effects. For certain habitats like ancient woodland or wetlands, BNG is difficult or impossible to achieve. Under the proposed Investment Zones are many such areas.

The Types of Local Ecosystems at Risk

The Royal Society for the Protection of Birds (RSPB) took to X (formerly Twitter) to protest the introduction of Investment Zones to our natural habitats. They claimed the proposal is born from an “utter lack of understanding by ministers”, debating whether they’d even read their own report on the economics of biodiversity.

This report contains a wealth of information on the importance of our natural world, from biodiversity and ecosystem resilience to the increased productivity and health our nation receives from it.

A Twitter post from the RSPB shows the extent of the impact that Investment Zones could have, with a particular focus on SACs and SPAs in the UK. It depicts a fair amount of overlap, and indicates that these legally protected areas could be overridden by the new zones and subsequent developments.

The March 2023 Policy Offer for Investment Zones does consider the environment to a degree. It looks at the long-term needs of green industry, stating that meeting our net zero and environmental targets in time means having the resources in place to do so. However, the actual impact of the construction of this infrastructure – alongside other private sector infrastructure as well – is not stated or considered in this proposal.

Overall, this means that the main local ecosystems at risk are those that house our indigenous birds, protected animals, vital wildlife like trees which prevent erosion and support thousands of species, and key natural habitats like wetlands and woodland. As such, protecting these areas and restoring any damage caused by developments is a must.

How can Developers and Local Authorities Ensure Habitat Protection?

As much as we need to grow and innovate, so too does wildlife need to be protected. With BNG requiring a net gain of 10% for any habitats affected by a development, developers need to have methods in place to achieve this environmental impact.

Step 1 – Understanding

Ensuring the environmental yield of a habitat is properly understood, along with the knock-on effects it has on local ecosystems and communities, is the first step to keeping our crucial habitats protected. Pay attention to the protection status of the habitat and regulations of the area, along with what the impact could be on surrounding habitats – especially if the development is in a buffer zone.

Step 2 – Planning

To prevent as much damage to the ecosystem as possible, plan in advance. This means being aware of what you need to do to preserve the ecosystem of your development site, along with any restoration efforts you may also need to undergo.

Step 3 – Preparing

Giving back to nature can mean contributing to habitats in locations other than your development. Before starting your project, you should find sites and providers for habitat restoration, ensuring any damage that is done will already be on the road to recovery.

Step 4 – Restoring

Work with a trusted land management company when you’re done. There’s no point in attempting to restore a habitat if it’s left to wither away. At The Habitat Restoration Company, we can help restore, preserve, and maintain habitats, ensuring a lasting positive effect on the environment.

Restoration and Preservation for Local Ecosystems from The Habitat Restoration Co.

Local ecosystems are an important part of our society. They house many types of flora and fauna, and provide additional benefits to communities like protection against erosion, natural water filtering, and a better environmental health. Therefore, protecting and restoring these habitats should be at the forefront of any development project – especially as Investment Zones poise to threaten our current legally protected areas.

If you’re planning a development and want advice or assistance with your habitat restoration efforts, get in touch. Our team are always here to help push you in the right direction, and ensure your project brings benefits to people and the environment as a whole.