This paper offers a critical review of the European Union Habitats Directive, which requires Member States to designate and protect a network of habitats of European importance. In the UK, several problems linked to implementation have already appeared at the local level. These are illustrated through two case studies where an often restrictive and static interpretation of the legal requirements of the Directive has led to management conflicts. It is suggested that the use of participatory approaches and instruments adapted to no-net-loss policies such as mitigation banking, while not entirely unproblematic, could ease some of the practical problems of implementing the Directive.
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