The project is a partnership between the London Borough of Bexley and the Port of London Authority.
It will restore and improve saltmarshes and mudflats to boost biodiversity, protect against flooding and coastal erosion, and meet the requirements of Biodiversity Net Gain.
Cllr Cameron Smith, deputy leader of Bexley council and cabinet member for economic growth and infrastructure, said: “This is an exciting project that will help restore nature here in Bexley as the region builds more homes.
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“Our partnership with the Port of London Authority unlocks local saltmarshes and mudflats for environmental improvements.
“The project will direct developers’ contributions to help nature thrive and improve important habitats right here in Bexley, playing a part in reversing biodiversity decline nationwide.”
The habitat bank will offer developers a way to meet their Biodiversity Net Gain obligations, which require a 10 per cent improvement in biodiversity for new developments.
As a result, Bexley will benefit from developer-funded environmental improvements at no cost to residents.
Grace Rawnsley, director of sustainability at the Port of London Authority, said: “As developers look to invest in the region, local communities can know that biodiversity is being improved at the same time.
“We have worked hard to design a sustainable programme to restore and improve the saltmarshes and mudflats at Bexley.”
More information about the project is available here.