Compensation for development-related biodiversity loss in Germany has been required since the 1970s, making it one of the longest running offsets programmes in the world. Compensation measures were originally carried out by the developing firm itself and were required to maintain strong links between the biodiversity lost through the development project and the compensation. This approach led to highly fragmented and costly offsets and caused the system of compensation to be reformed. The resultant Impact Mitgation Regulations are the foundation for the German biodiversity compensation system. The reforms relaxed the requirements regarding spatial, temporal and functional coherence with the objective of improving biodiversity outcomes and streamlining the compensation process. This chapter reviews the progression of German Impact Mitigation Regulations with a focus on the federal state of Hessen. It summarises the design and implementation features of the programme – including the important public sector role in biobanking – and concludes with insights and key lessons learned from the Hessian experience.