Why Compensatory Mitigation Shouldn’t Slow Your Project — If You Do It Right

For many developers, compensatory mitigation feels like the part of the permitting process where progress grinds to a halt. But in reality, it’s one of the few places where smart strategy can save time, reduce risk, and deliver real conservation outcomes — if you choose the right path.

At The Conservation Fund, our Mitigation Solutions team works at the center of that intersection: where regulatory requirements meet on-the-ground conservation. After completing more than 375,000 acres of mitigation-driven protection, we’ve seen what actually works — and what consistently derails projects.

Mitigation isn’t the hurdle — uncertainty is.

Once you’ve avoided and minimized impacts as far as practicable, compensatory mitigation becomes the tool that lets your project move forward; however, the challenge is that not all mitigation options are created equal.

Whether it’s a pipeline spanning multiple jurisdictions or a transmission upgrade that can’t shift an inch, uncertainty in the mitigation process — not the mitigation itself — is what creates delays.

Three paths, and why they’re not equal

For Endangered Species Act-protected species, you generally have three options:

• Buy credits from a conservation bank: Fastest, lowest uncertainty — when a bank exists. But most species and geographies don’t have coverage.
• Use an in-lieu fee program: Ideal for small, dispersed impacts or regions without available banks. As one of the nation’s leading ILF program operators, we’ve built programs specifically for these gaps.
• Develop permittee-responsible mitigation: Necessary when no credits exist — but also considered higher-risk option unless you partner with an experienced conservation implementer. Even when credits are available, this option is best for large projects with custom mitigation needs and interest in added public benefit.

This is where most developers stumble. Permittee-responsible mitigation is often treated as an unpredictable option, when it can actually be the most practical solution — if you’re working with the right team.

Our perspective: go where certainty is highest

Across long linear infrastructure projects — pipelines, transmission lines, transportation corridors — mitigation rarely fits neatly into a credit market. That’s why our team frequently partners with developers to design and implement multi-species, multi-jurisdiction solutions that the U.S. Fish and Wildlife Service trusts.

Because here’s the part most people don’t realize: Regulators care about outcomes. Developers care about timelines. Local communities care about public benefits. The right mitigation partner delivers them all.