A new statutory scheme is being introduced in England under the Environment (Principles and Governance) Bill, expected in October 2019.
A conservation covenant is a private voluntary agreement between a landowner and a “responsible body” (such as a conservation organisation or public body) to do, or not do, something on their land for a conservation purpose for the public good. This could be to conserve the natural or historical environment of the land. The Covenant is distinguished (for example, from things like easements or other private interests in land) by its requirement that there are a conservation purpose and a public good involved.
The government is to develop guidance to flesh out various key aspects of the scheme, including what we think might be quite a broad definition of “public good”, and on potential tax implications.
The scheme seems to fall within the context of the Government’s 25-year plan to improve natural environment, which sets out how the government will protect and improve habitats and wildlife, which is partly driven by Brexit and the departure from the EU Common Agricultural Policy, which will enable the government to introduce significant improvements under a new environmental land management system. Conservation covenants are part of that system
A conservation covenant could contain positive or restrictive obligations, or both. A positive obligation would require the landowner to do something, such as manage the land to secure a conservation outcome. A restrictive obligation would secure a conservation outcome by requiring the landowner not to do something. Conservation covenants can run with the land and bind future landowners as well as the person who entered into the agreement, but also offer flexibility as the parties negotiate the terms to suit their particular circumstances, including the covenant duration.