Form

Terms and conditions: nutrient mitigation scheme

Updated 30 April 2025

Applies to England

Terms and conditions for Natural England’s nutrient mitigation scheme. The scheme allows developers to offset nutrient pollution that their development may create by buying credits under the scheme and receiving a nutrient credit certificate.

Definitions and interpretations

Definition	Interpretation
Administration Fee	£182.50 plus VAT.
Competent Authority	As defined in Regulation 7 of the Habitats Regulations.
Developer	The party identified from time to time in Section 2 of the nutrient credit certificate. If Natural England amends a Nutrient Credit Certificate pursuant to clause 2.4 any subsequent party named in Section 2 shall be a “Successor Developer” and the original party shall be the “Original Developer”.
Development	The development identified at Section 3 of the nutrient credit certificate.
Development Site	The land on which the Development is located and all of it.
European Site	Has the meaning given by Regulation 8 of the Habitats Regulations.
Exempt Sewage Disposal Works	Sewage disposal works subject to section 96D of WIA 1991 (as inserted by Part 7 of LURA) and consequentially not subject to a statutory requirement to be Upgraded (and ‘Exempt’ shall be construed accordingly).
Expire	The termination of a provisional Nutrient Credit Certificate by effluxion of time pursuant to clause 7.2 (and ‘Expiry’ shall be construed accordingly).
First Stage Payment	10% of the Total Nutrient Credit Fee, plus VAT, or £182.50 plus VAT, whichever is the greater.
Freedom of Information Regime	The Freedom of Information Act 2000, the Environmental Information Regulations 2004 and all associated laws, requirements and codes of practice.
Habitats Regulations	The Conservation of Habitats and Species Regulations 2017.
HRA	An assessment of the implications of a plan or project on a European Site, as required by Part 6 of the Habitats Regulations.
Improvement	A planned improvement to the Nutrient retention of a Relevant Sewage Disposal Works under the water industry’s Asset Management Plan period 7 (“AMP7”) before the Upgrade Date (and “Improved” shall be construed accordingly.)
Improvement Date	The date by which an Improvement shall be effective.
Interim Nutrient Credits	Nutrient Credits for the period between the Occupation Date and the Upgrade Date. “Interim Nutrient Credit Fee” means Natural England’s charges for such credits, plus VAT. Interim Nutrient Credits shall cease to exist on the Upgrade Date. If the Relevant Sewage Disposal Works is subject to Improvement Interim Nutrient Credits will be: “Pre-AMP7 Nutrient Credits” for the period between the Occupation Date and the Improvement Date; and “Post-AMP7 Interim Nutrient Credits” for the period between the Improvement Date and the Upgrade Date or the period between the Improvement Date and the Long term End-date, as appropriate.
Long-term End Date	80 years from the Occupation Date or such longer period as the Competent Authority for the Development Site shall require.
Long-term Nutrient Credits	Nutrient Credits for the full period between the Occupation Date and the Long-term End Date. “Long-term Nutrient Credit Fee” means Natural England’s charges for such credits, plus VAT.
LURA 2023	The Levelling-up and Regeneration Act 2023.
Material	Any difference that in Natural England’s reasonable opinion can or may affect the potential of the Development to have a significant effect on a European Site under the Habitats Regulations. If the Developer is or ought reasonably to be in doubt as to whether a matter is Material it must make enquiry of Natural England in Writing.
Nature-based Solutions	Means of generating Nutrient Credits via land-use changed that may be either: “Short-term Nature-based Solutions”, effective for a limited number of years, or “Long-term Nature-based Solutions, effective until the Long-term End Date.
Nitrogen, N	Compounds of nitrogen.
Nutrient	Nitrogen and Phosphorus.
Nutrient Credits	Credits relating to the removal of Nitrogen and/or Phosphorus inputs to a European Site secured by Natural England, and including Interim Nutrient Credits and Longterm Nutrient Credits.
Nutrient Credit Certificate	Includes both a provisional and a final Nutrient Credit Certificate and the Annex(s) thereto.
Occupation Date	The date on which the first dwelling on the Development is occupied.
Phosphorus, P	Compounds of phosphorus.
Post-AMP7 Nutrient Credits	Nutrient Credits for the period between the Improvement Date and the Long-term End Date. “Post-Improvement Credit Fee” means Natural England’s charges for such credits, plus VAT.
Post-Upgrade Nutrient Credits	Nutrient Credits for the period between the Upgrade Date and the Long-term End Date. “Post-Upgrade Credit Fee” means Natural England’s charges for such credits, plus VAT.
Planning Permission	Statutory permission granted by a Competent Authority for the Development, whether full, outline, reserved matters, discharge of conditions or other and whether or not in terms acceptable to the Developer, and including conditions and agreements associated therewith.
Relevant European Site	The European Site(s) that will receive input from the Relevant Sewage Disposal Works.
Relevant Sewage Disposal Works	The sewage disposal works identified in Section 3 of the nutrient credit certificate that will serve the Development.
SDW	Sewage disposal works
Second Stage Payment	The balance of the Total Nutrient Credit Fee after payment of the First Stage Payment, adjusted to take account of any difference between the Development as proposed and the Development once granted Planning Permission, plus VAT.
Secretary of State	The Secretary of State for the Department of the Environment, Food and Rural Affairs.
Start Date	The date to be inserted by Natural England at the top of page 1 of a Nutrient Credit Certificate. A Nutrient Credit Certificate that does not stipulate its Start Date is invalid.
Upgrade	The statutory obligation under Part 7 of LURA to apply more stringent nutrient pollution standards to the concentration of total nitrogen and total phosphorus in treated effluent discharged from sewage disposal works (and “Upgraded” shall be construed accordingly).
Upgrade Date	The date pursuant to section 96E of the WIA 1991 from which the Relevant Sewage Disposal Works shall be subject to the statutory requirement under Part 7 of LURA to Upgrade.
VAT	Value added tax chargeable in the UK.
WIA 1991	The Water Industry Act 1991.
Writing	Includes email, which must be addressed to nutrientmitigation@naturalengland.org.uk

1. Fees

1.1 For an application for the nutrient mitigation scheme to be accepted, it must be submitted in accordance with the Regulations, and this includes the payment of a fee by the applicant for each application. 

1.2 Find details of how to submit an application, what must be included in an application and how to pay the fee.

Note (i) Natural England endeavours to procure the supply, monitoring and maintenance of Interim Nutrient Credits to deliver mitigation between the Occupation Date and the Upgrade Date by the use of Short-term Nature-based Solutions. Where this is not possible Natural England supplies Interim Nutrient Credits generated from Long-term Nature-based Solutions. 

Interim Nutrient Credits will cease to exist at the Upgrade Date. Any such credits generated from Long-term Nature-based Solutions will become Post-Upgrade Nutrient Credits and will be at Natural England’s sole disposal. 

Note (ii) Natural England’s nutrient budget calculator automatically incorporates a precautionary margin of 20%. If using any other nutrient budget calculator, the Developer must ensure that a comparable precautionary margin is incorporated.

2. Inaccuracies, changes, amendments 

2.1 The Developer must inform Natural England in Writing if at any time it becomes aware of any Material inaccuracy in the description of the Development given in a Nutrient Credit Certificate. 

2.2 The Developer must inform Natural England in Writing if at any time there is any Material change to the Development specified in a Nutrient Credit Certificate, either as proposed, as consented, or as built, or if there is any Material change in any assumption(s) in the nutrient budget calculation for the Development. 

2.3 The Developer may apply in Writing to Natural England for the amendment of a Nutrient Credit Certificate and/or recalculation of the Total Nutrient Credit Fee if the description of the Development given in a Nutrient Credit Certificate is subject to Material change (including but not limited to the grant of Planning Permission for a number of houses different to the number originally applied for) or if there is any Material Change in any assumption(s) in the nutrient budget calculation for the Development.  

2.4 If it proposes to transfer its interest in the Development Site to another party the Developer or a Successor Developer may apply in Writing to Natural England for the amendment of a Nutrient Credit Certificate to specify the proposed transferee as Successor Developer. The Original Developer shall procure the signature of a proposed Successor Developer at Section 7 of an amended Nutrient Credit Certificate, pending which the Original Developer shall remain liable to Natural England for all and any monies unpaid or to fall due under the Nutrient Credit Certificate and for subsequent compliance with any other provisions of that certificate. Natural England’s acceptance of a proposed Successor Developer’s signature at section 7 of an amended Nutrient Credit Certificate shall be a discharge of the Original Developer’s rights and obligations under the certificate. 

2.5 An application to Natural England for any form of amendment of a Nutrient Credit Certificate and/or recalculation of the Total Nutrient Credit Fee shall be accompanied by such information and documents as Natural England may reasonably require and shall be processed in a timescale to be determined by Natural England. An Administration Fee shall be payable in advance of any such applications being considered by Natural England. 

2.6 Natural England is entitled to treat applications for the amendment of a Nutrient Credit Certificate and/or recalculation of the Total Nutrient Credit Fee and/or the nomination of a proposed Successor Developer as a matters for its own discretion. Natural England gives no assurances or guarantees that it will agree to the amendment of a Nutrient Credit Certificate to increase the number of Nutrient Credits to be purchased by the Developer. 

2.7 The effect of any amendments to a provisional Nutrient Credit Certificate that require the recalculation of the Total Nutrient Credit Fee shall be reconciled in the VAT Invoice for the Second Stage Payment and at the point of amendment of a provisional Nutrient Credit Certificate no refund shall be claimable against monies paid in settlement of the First Stage Nutrient Credit VAT Invoice.

3. Statutory functions 

3.1 Nothing in a Nutrient Credit Certificate shall prejudice, conflict with or affect the exercise by Natural England of its statutory functions (including as statutory consultee), purpose, powers, rights, duties, responsibilities or obligations howsoever arising under law, nor shall it fetter the exercise of any discretion that Natural England may have. 

3.2 A Nutrient Credit Certificate is not a licence permission or consent from Natural England that may be required under any other legislation.  

3.3 Natural England excludes all warranties and representations in so far as the law permits. Specifically, but without limitation, the issue of this certificate is not a warranty or representation that if the Developer needs a further licence permission or consent in relation to the Development that such a licence permission or consent will subsequently be granted. Furthermore, the issue of this certificate is not a warranty or representation that Natural England is satisfied with other aspects of the Development that fall within Natural England’s remit as statutory consultee in the land use planning process.

4. Termination 

4.1 Natural England may terminate a Nutrient Credit Certificate on notice in Writing to the Developer if it reasonably concludes that that it has been issued on the basis of Material inaccuracy or that there has been a Material change to the Development that the Developer has not informed Natural England of. Before terminating a Nutrient Credit Certificate on this basis Natural England shall give the Developer reasonable notice in Writing of its intentions and the opportunity to make a written representation against termination in a timescale to be determined by Natural England. 

4.2 Natural England may terminate a Nutrient Credit Certificate immediately on notice in Writing to the Developer where in Natural England’s reasonable opinion compliance with its obligations under this certificate is likely to conflict with Natural England’s statutory functions (including as statutory consultee), purpose, powers, rights, duties, responsibilities or obligations.

5. Data and information

5.1 Read the Natural England privacy policy for the nutrient mitigation scheme.

5.2 The Developer acknowledges that Natural England is subject to the requirements of the Freedom of Information Regime and that it does not guarantee confidentiality in relation to any matter relating to a Nutrient Credit Certificate. The Developer shall assist and co-operate with Natural England as necessary to comply with requests made under the Freedom of Information Regime. In responding to a request for information Natural England shall use its reasonable endeavours to consult with the Developer, but the Developer acknowledges and accepts that Natural England may disclose information without consultation or following consultation and having taken the Developer’s views into account. 

5.3 The Developer shall ensure that all information produced to Natural England in connection with a Nutrient Credit Certificate and the Development is retained for disclosure and shall provide all necessary assistance as reasonably required by Natural England to enable Natural England to respond to a request for information in a timely fashion and shall permit Natural England to inspect such records as reasonably requested from time to time.

6. Other matters 

6.1 Natural England may decline to process an application made to it under the terms of a Nutrient Credit Certificate if it is not supplied by the applicant with the information that it reasonably requires to allow it to process that application. 

6.2 A Nutrient Credit Certificate may not be relied upon by any person other than the Developer or a Successor Developer or in relation to any development other than the Development therein described. 

6.3 A Nutrient Credit Certificate may not be sold, charged, transferred, traded, given or otherwise assigned by the Developer to any other person. 

6.4 Insofar as is permissible in law Natural England accepts no liability for any consequence, whether direct or indirect, of the issue of a Nutrient Credit Certificate. Without prejudice to the generality of the foregoing, Natural England shall have no liability to the Developer arising as a result of the Expiry of a provisional Nutrient Credit Certificate. 

6.5 No variation of a Nutrient Credit Certificate shall be valid unless in writing and signed by Natural England. 

6.7 A waiver by Natural England of any provision of a Nutrient Credit Certificate shall not affect any other provision of a Nutrient Credit Certificate. 

6.8 Nothing in a Nutrient Credit Certificate is intended to or shall be deemed to constitute a partnership or joint venture of any kind between Natural England and any other party. 

6.9 Natural England and the Developer do not intend any term of this certificate to be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to it. 

6.10 A Nutrient Credit Certificate and any disputes arising out of it shall be governed by and construed in accordance with the laws of England.

7. Expiry and renewal of provisional Nutrient Credit Certificate 

7.1 The Developer must inform Natural England in Writing as soon as it becomes aware of the grant or refusal of Planning Permission. 

7.2 A provisional Nutrient Credit Certificate will Expire after 36 weeks from the Start Date, if by that time the Developer has not informed Natural England in Writing of the grant of Planning Permission. 

7.3 Upon Expiry of a provisional Nutrient Credit Certificate Natural England’s obligation under clause 5.1 in the nutrient credit certificate shall cease and all Nutrient Credits reserved for the Development shall cease to be so reserved. 

7.4 Before the Expiry of a provisional Nutrient Credit Certificate the Developer may apply in Writing to Natural England for its renewal either in its existing form or amended and/or recalculated to reflect changes in circumstances.  

7.5 An application to Natural England for the renewal of a provisional Nutrient Credit Certificate shall be accompanied by such information and documents as Natural England may reasonably require and shall be processed in a timescale to be determined by Natural England. 

7.6 Natural England is entitled to treat applications for the renewal of a provisional Nutrient Credit Certificate as a matter for its own discretion having regard to the market for Nutrient Credits in the area of the Development and the needs of other developers and gives no assurances or guarantees that it will agree to the renewal of a Nutrient Credit Certificate or to renewal in the terms requested. 

7.7 The Expiry date of a renewed provisional Nutrient Credit Certificate shall be determined by Natural England having regard to the circumstances of the case.

8. Repayment of First Stage Payment 

The First Stage Payment and VAT thereon is repayable without interest and subject to the deduction of the Administration Fee if before the expiry of a provisional Nutrient Credit Certificate the Developer: 

• withdraws the application for Planning Permission for the Development; or 

• the Development is refused Planning Permission or is granted Planning Permission on terms unsatisfactory to the Developer;

and

• the Developer makes a request in Writing for a repayment within 28 days of the occurrence of one of the above events.

9. Repayment in other circumstances 

9.1 The Developer or a party authorised in Writing by the Developer may if it believes that an over-payment has been made apply in Writing to Natural England for a repayment and shall include a full explanation of the circumstances of its belief and where section 6.16.4 applies the grounds for any belief that exceptional circumstances apply. The following shall also apply: 

9.2 an Administration Fee shall be payable by the applicant for a repayment in advance of its being considered by Natural England; and 

9.3 such an application shall be determined by Natural England in its absolute discretion; and 

9.4 Natural England shall not accept applications based on scientific justifications not readily available and accepted by it at the Start Date; 

9.5 Only in exceptional circumstances shall Natural England accept applications for repayments following the grant of Planning Permission for the Development; and 

9.6 there shall be no right of appeal; and 

9.7 interest shall not be payable; and 

9.8 where the application has been made by a party authorised by the Developer it shall be a condition of a repayment that the receiving party gives the same declarations as have been given at Section 7 of this Certificate and indemnifies Natural England against claims for repayment from the Developer and undergoes such anti money-laundering checks as Natural England may see fit to apply.

10. Natural England’s Commitments

10.1 In relation to a provisional Nutrient Credit Certificate and until its Expiry Natural England shall reserve sufficient Nutrient Credits for the Development.

10.2 In relation to a final Nutrient Credit Certificate Natural England shall:

10.2.2 - procure land use change sufficient, on a precautionary basis, to produce the Nutrient Credits;

10.2.2 - ensure that the mitigation effected by the generation of the Nutrient Credits is functional before the Date of Occupation;

10.2.3 - ensure that the mitigation effected by the generation of the Nutrient Credits remains functional for the duration appropriate to each class of Nutrient Credit, including by monitoring and maintaining mitigation function as necessary;

10.2.4 - ensure that each of the Nutrient Credits is uniquely identified and categorised according to:

• (a) its duration,
• (b) the land from which it is generated,
• (c) the land-use change involved,
• (d) the identity of the Developer, and
• (e) the identity of the Development.

10.2.5 ensure that Nutrient Credits are not available for sale to or use by any other party or in relation to any other development.

10.3 Natural England shall use its reasonable endeavours to use Short-term Nature-based Solutions to generate Interim Nutrient Credits. However, it is acknowledged and agreed that circumstances may not allow this, and in such cases Natural England supplies and the Developer accepts Interim Nutrient Credits generated from Long-term Nature-based Solutions.