Thu May 12 2022
The final drafts of the Markets Rules and associated legal agreements are almost ready to for submission to meetings of the key approval bodies in South Somerset and Natural England.
Market opening is dependent on the timing of these approvals. Once approval is granted, all key information relating to the Market - including template agreements, bidding schedule and anticipated market size - will be released for a period of at least 4 weeks prior to Market opening.
Some key points to note prior to then:
The Somerset Local Authorities have confirmed that their Phosphate Budget Calculator should continue to be used as the basis for calculating Phosphorus mitigation needs for new developments.
The geography of the market has now been simplified. There are now three "areas of risk": The Tone, the Brue and the Parrett. Links to maps of each area are included in the Guidance section of this website. Round 1 of the market will focus on the Parrett area of risk, with credits available for developments awaiting resolution of planning applications in the South Somerset District Council part of this area.
In the next fortnight, EnTrade will write to all developers in the Parrett who have registered an EOI to buy credits. EnTrade will ask that they confirm their wish to proceed in Market Round 1, to confirm their short and long-term mitigation needs and confirm that South Somerset District Council has agreed the validity of their Phosphate Budget calculation.
Thu Mar 31 2022
Timings for the first market round are still not firmed up, but we continue to make positive progress in finalising the relevant legal agreements with South Somerset District Council (SSDC).
Once SSDC has approved the legal and enforcement mechanisms, EnTrade will issue a Catchment Opportunity Statement confirming indicative supply and demand. Developers will also receive the template Environmental Credit Supply Agreement for review at the same time, whilst suppliers will receive the template Nature-based Project Agreement.
We will also hold a pre-market review with Natural England and SSDC to confirm the validity of our mitigation project accreditation estimates and developer estimates of credit requirements. This will enable us to ask suppliers and developers to formally register their projects/ offsite mitigation requirements for entry into the market.
All of that considered, bidding is unlikely to take place until June at the earliest.
Wed Feb 23 2022
The process of finalising agreements to run the Market for permanent credits continues. We appreciate that the ongoing delays are frustrating. We are at the final stage of confirming how the long-term supply contracts will be structured and enforced, so there is an end in sight.
In the meantime, a market event for farmers, aiming to secure short-term credits, is currently running. This is allowing Farmers to confirm "Option to Supply" offers for short-term projects. When we open the market for permanent credits, we will be able to provide a developments' short-term credit needs (ie any extra mitigation required for sites draining to a Wessex Water asset that is due to be upgraded by December 2024), and to bridge the establishment period of permanent projects. Having bridging credits in place means that occupation of dwellings that receive planning permission, conditional on mitigation being operational, could occur from October 2022.
Fri Jan 28 2022
The earliest date by which we will finalise legal agreements to validate use of Credits in South Somerset has now been revised to late February. Once this agreement is in place, we wil begin a four-week engagement period with potential market participants. This means the full market opening is now estimated to occur in late March 2022.
We have reopened the window for future credit needs to be registered and will consider all needs registered by 5pm on 28 February. The first market round will still only supply credits that are valid for use in the Isle, Parrett and Yeo catchments, but needs for any location can be registered.
Ahead of the full market, EnTrade will run a market event to buy fixed term projects from farmers, details to follow on the Market Events pages.
Fri Jan 07 2022
We are still tweaking our legal agreement with regulatory authorities to ensure that credits supplied through the market will be accepted as mitigation for nutrient neutrality. This process may take until the last week of January to complete. Before opening the market, we will then have a 4-week lead period to engage with market participants on Market Rules, contract templates and bidding/settlement processes.
Registration of credit needs can still continue, but we will only consider registrations received prior to 31 December for entry in the first market round. Once we have completed our legal agreements with regulatory authorities, we will write to developers to confirm our record of their registered needs and check if this is the amount they would bid for.
Registrations for credit needs received after 31 December, and registrations for needs in Subcatchments not being supplied in Round 1 (Tone, Cary, Brue and Wells Subcatchments) will be considered for future market rounds.
EnTrade will open a market event for farmers to offer to supply short-term projects (cover crops, arable reversion, water course fencing) in late January/early February. EnTrade will buy these projects to hold for use to meet short-term credit needs that developers may need in addition to their permanent credits. Separate communications on requirements and processes for this event will follow shortly.
Wed Nov 17 2021
We are close to finalising legal provisions with South Somerset District Council for their acceptance of Phosphorus Credits supplied under the terms of the Market Rules as adequate mitigation. Once these provisions are agreed we will be in a position to finalise Market Rules and contract templates for Nature-based Project Agreements and Environmental Credit Supply Agreements.
As such, we have extended the window in which Developers can register their credit needs until 26th November. We will then prepare a Catchment Opportunity Statement to summarise overall supply and demand for Market Round 1 in December. Training events and briefings wil be organised for early December to provide support to Market Participants prior to Market opening. Round 1 will likely only be able to supply credits for developments that drain to the Isle, Parrett Headwaters, Middle Parrett and Yeo Subcatchments. Supply in further Subcatchments (Tone, Cary and Brue) will become available in Round 2 which is now due to open in February 2022.
As well as providing projects for permanent mitigation, we will also be sourcing projects for short-term credit needs, these will allow permanent Credits from both rounds to be redeemable from October 2022.
Wed Oct 27 2021
Developers can now express an interest of their confirmed credit buying needs via the updated Credit Buyer Registration portal. Mitigation needs for developments in any location can be registered, provided they have a valid planning reference and can upload a copy of the results of their phosphate calculator output for the development. However it is likely that that supply of credits in the first Market Round will only be approved for use by developments in the South Somerset areas of the Isle, Middle Parrett, Parrett Headwaters and Yeo catchments. Future Rounds covering the entirety of the catchment are still planned to occur in early 2022.
Prior to opening Market Round 1, we plan to run some test events in mid November for likely participants (Suppliers and Buyers), so that they can familiarise themselves with the way bidding will work. These events will be based on "dummy" data. Invitations to attend from the Buyer side will be based on data in the Credit Buyer Registration portal.
Fri Aug 27 2021
Wessex Water, EnTrade, University of Exeter and Wheatley Young Partners ran a webinar for developers on 24th August to explain how the Market has been designed, how it will operate and how bids will be settled. Slides and Q&As from the session are now published in the Developers’ Briefings section of the Guidance pages.
We continue to finalise the Market Rules, plus template contracts for Nature-based Project Agreements and Environmental Credit Supply Agreements. We expect to publish these early in September.
Following the success of the market for farmers to offer short-term measures, we will run an additional market opportunity in early September, focusing on cover crops after Maize (one-year) and Arable Reversion (until March 2025). Follow the Market Events section to find out more.
Fri Aug 20 2021
The first Market event for Arable Reversion and Cover Crop projects closed at noon on 16th August.
Eligible bids were received for 419 Hectares of Cover Crops, with offers made for 266 Hectares
Eligible bids were received for 82 Hectares of Arable Reversion, with offers made for all of this
A further market event to buy more of these short-term projects will run in early September, with the option for Cover Crops being limited to fields currently under Maize, with an establishment deadline of 15th October.
To review the Project specifications, see the downloads available on the Previous Events page of the SCM website.