Conservatives flesh out plans for "Conservation Banks"

The Conservatives are set to unveil detailed plans for a new Conservation Banking scheme designed to ensure developers pay to better protect wildlife habitats within the next few months.

The proposals, which were first unveiled earlier this year, have been assessed by a working group and are expected to be formally unveiled by early next year at the latest, according to a Conservative Party spokeswoman.

The news comes as reports emerged today that the proposals, which have been modelled on schemes in the US and Australia, would effectively force developers to buy credits from "Conservation Banks" if they want to receive planning permission.

In an interview with The Guardian, shadow environment secretary Nick Herbert said that the conservatives were looking to make the proposals a central plank of their environmental agenda.

"The existing bureaucratic, regulatory approach has failed to halt biodiversity loss," he said. "We need radical new thinking to reverse the decline. Our natural ecosystems and the services they provide like carbon storage, water storage and habitats for wildlife are worth billions of pounds. We have to find a way to unlock this value. With a market approach we can look forward to new ways of supporting wildlife, habitats and landscape."

Under the proposals, the banks could be run by conservation groups, local communities or businesses. Developers would then have to buy credits from the banks based on the size of their proposed development, providing a fresh revenue stream for financing forestry and wildlife projects.

The proposals have received a tentative welcome from developers and conservation groups who have praised the proposals in principle, but have also warned that numerous safeguards will be needed to stop the credits becoming a tax on development that fails to deliver significant improvements in biodiversity.

"We are cautiously sceptical with a note of optimism," said a spokesman for the RSPB. "We are open to new ideas, but there will need to be a lot of safeguards to ensure it does actually deliver benefits."

One of the main concerns voiced by green groups is that the introduction of conservation credits will allow developers to undertake environmentally damaging projects, on the grounds that all they need to do is pay for credits to protect environments elsewhere.

However, Herbert sought to alleviate concerns telling The Guardian that the proposals did not constitute the "the privatisation of nature".

"The market system is a new, additional way to achieve protection of wildlife, not a substitute," he said. "We will rule out any proposals that would weaken the existing protection of endangered sites or species and ensure that any measures are in addition to existing safeguards regarding development on green spaces"