This paper offers a critical review of the European Union Habitats Directiv
e, which requires Member States to designate and protect a network of habit
ats of European importance. In the UK, several problems linked to implement
ation have already appeared at the local level. These are illustrated throu
gh two case studies where an often restrictive and static interpretation of
the legal requirements of the Directive has led to management conflicts. I
t is suggested that the use of participatory approaches and instruments ada
pted to no-net-loss policies such as mitigation banking, while not entirely
unproblematic, could ease some of the practical problems of implementing t
he Directive. (C) 2000 Elsevier Science Ltd. All rights reserved.