Foundation Paper Two: Land and Biodiversity

Foundation Paper | TWO

Land AND Biodiversity Victoria: the science, our private land holders, incentives and connectivity Published by the Commissioner for Environmental Sustainability Melbourne, Victoria, 2013

©The State of Victoria, Commissioner for Environmental Sustainability 2013 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.

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ISBN 978-1-921147-21-0

For further information contact the office of the Commissioner for Environmental Sustainability, phone +61 3 8636 2197 or visit www.ces.vic.gov.au

Disclaimer This report may be of assistance to you and every effort has been made to ensure that the information provided is correct. The Commissioner for Environmental Sustainability does not guarantee that the report is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. ConTENTS

Introduction 08

Chapter ONE - THE ‘PATTERN’ THAT CONNECTS – OUR SHARED RESPONSIBILITY 16 REDUCED RAINFALL 1.1BUSHFIRES HEATWAVES a varietyHIGHER AVERAGE of TEMPERATURES interventionsINTENSE STORMS HIGHER CO2 CONCENTRATIONS 16 SEA LEVEL RISE SEA SURFACE TEMPERATURE

1.2 Incentives Changes to 19 phenology altering Fewer numbers Loss of interactions between and less frequent alpine ecosystems species successful breeding of Decreased waterbirds and other 1.3 Biolinks and corridors: the ‘pattern that connects’opportunities for 21 riverine animals migration and changes to the phenology DROUGHT BUSHFIRES HEATWAVES HIGHER AVERAGE TEMPERATURES INTENSE STORMS HIGHER CO2 CONCENTRATIONS of species

SEA LEVEL RISE SEA SURFACE TEMPERATURE Decline in wetland Possible increase and riparian condition in crop and forestry Increased loss of yields when not limited forests and plantationsfrom reduced by other climate to more frequentinundation of wetlands change impacts Relocation of bushfires and floodplains Reduction in water agricultural industries resources available to more suitable areas Decreased for agriculture soil health limiting plant CHAPTER TWO - BIODIVERSITY IS BIncreasesA SIin pests andC , WE CAN’T LIVE WITHOUT growth and increasing Loss of ground cover disease reducing erosion increasing erosion Changes in the yields and raising and dust storms management costs distribution and abundance Degraded condition of species, with possible or loss of fire and ECOSYSTElocalM extinctions SERVICES drought sensitive Extended distribution 26 habitats and greater impacts of pest species

Decreased soil health 2.1 Biodiversity – the rare and the mundane Loss of species 27 limiting plant growth sensitive to increased and productivity Reduction in crop yields Reduced pasture from hotter, drier water temperature and growth limiting climate and more reduced river flows grazing opportunities Declines in water severe storms Reduction in timber HOPETO UN-RAINBOW ROAD

AD ROSEBERY EAST ROAD O GROGANS R ROAD

quality from reduced production from E

ROSEBERY-RAINBOW ROAD R ROSEBERY-RAINBOW ROAD 2.2 Fragmentation and physical and community linkages AD 30

Wimmera Cropland Management TransecR t

PIGICK BU -K S ROUTE ROAD R hotter, drier climate W A

H flows, extreme D EET

N I

U H

Y RAINB T Autumn 20OW1 RISE1S ROA D Survey N

and more severe E weather and bushfires H BIRCHIP-RAINBO W ROAD D

AD storms

Reduction in R Changes in freshwater G

W BI U O RCHIP-RAINBOW RO O AD

livestock -W -R

flows and terrestrial AL

-R L

ABE

L W L N A

O production from KE K

R AC

O MB

runoff will impact on A R

D Less frequent frosts D A AD PULLUT WEST ROAD PULLUT EAST ROAD W 2.3 ecosystem services O 31 GALAQUIL WEST ROAD

hotter, drier R GALAQU IL EAST ROAD

H AD

O inshore habitat such reducing the yield -N

P climate and more O

and quality of crops U severe storms as estuaries R APPLEDORES ROAD BRIM EAST ROAD ELLAM-WILLENABRINA ROAD AD

that require chilling G

BRIM WEST ROAD BRIM EAST ROAD P

H N

C H

I Reduced freshwater L AT L D

-MU A for production -

Changes O to the timing NE R THE R R RBY-B

AKER KU R RO L AD L

L A O I AYVI RQ F UON-NET RYATT ROAD

H W inputs will impact on ERBY R OAD AD BEY

L O D

L R A E N

O O

R U of life cycle events

ED Q R G O R LAH WEST ROAD ERL O

EY N RO AD L JEPARIT EAST ROAD LAH EAST ROAD

inshore habitats vital AD O B BL B O I CK 40 R " OAD LORQ R

UON RO L

AD E A AD H JEPARIT-W U O ARRACKNABEAL RO A such as breeding and AD D N A

R L B G O G to many commercial BR L L R OUGHT EN E IP VA ON R I R Jeparit H OAD L O C E R E-L AD AN -BI

O AD AL -K

R D

O N Q ABE

U R O N seasonal migrations AD O O K marine species T D N S WATCHEM-WARRACKNABEAL ROAD O R AC H A

R G R R O G O N N AD N AR

U H R O W

I BY BAN L O L GERANG ROAD N

L BB

T I -Y O ARR ER A BR NYUR K R A U W H EST R TARRANYURK EAST ROA N OAD D

Q E A L ET A R U D C H

O A -N A AD

Inland lakes R BL N L O -L

O O I G L R L PR I

AD R OPO N E DO L H LAH I N R ROA S D N O O AD Y AD

D T O G R A H AK-N AUBREY ROAD T ER D I O G R VER

A R A U

O AR AN A BORUNG HIGHWAY O O

become drier and G O N T AD R -JEP W G N W L O ER BR S L " I - A R P H G G R N L C O

N ER

I I E AD

G D N

E Warracknabeal

R L

E D A

O E BAN H

more saline EO D R

D AN A T G O WERP L P A -W O L O O R I AD AK R O OAD R YU

N K

PA A AD

O EEP

U R O

R O R D SH Increased loss of AD IAPU R -MI O AR O RA M ROA H Y R D T AD R -W O R U NH Y P ILL-D R IAPU O IA R ROAD R N AD D N O BU R O A R " R R S AILSA ROAD I A property, crops U AT IAP C D KI D AD ROAD L SAL HILLS O O BOOLITE-SHEEP R Nhill

W D

I A I L N AW

O G I

Salt water R and livestock to AM L ER EL

L I Y R E A A O MT AST W A

AD W

H AD D - G O I L " O SHEEP HILLS-KELLALAC ROAD G H R R

AD R YI G ER N H O T ST more frequent O U T A AD R R AW

N KA intrusion of coastal U Rising ocean KEE W BO ESTE G BARRAT ROAD RN H O IGHW KA EL A SO AL Y S Kaniva T AD L A A U - O W

T M-K AT H R

A A

KI bushfires MAK R C R H I OKE O R D R

A SH T M N R D AD OAD AC A

U R O freshwater KI R acidification will have O A O K TO CHAPTER - CHALLENGES S H 38 THREE N R ABEA -MU M LD A A ON R D L MI DIMBOOLA-M INYIP ROAD R O A wetlands severe consequences for D D A MINYIP-DIMBOOLA ROAD

O R Dimboola " PE " Rising ocean O OLD MINYIP ROAD MINYIP-RICH AVON ROA H Minyip D

marine species and EN

A-E

V acidification will I HORSHAM-MINYI MI KAN P ROAD NY IP- ecosystems AD BAN O YE R N AD A Y RO O AD

impact on many R MB O

Wind Erosion Risk C R I O C ET IP- D Y N

EO MI commercial species Very Low G " BANYENA ROAD BANYENA-PIMPINIO ROAD 3.1 climate change BANYENA ROAD 40 Towns Low AD

Moderate O

N Transect Route AD

Migration or loss of R

JU High W O R Changes to the Roads AR marine species will -H

L WIMME COOAC RA HIGHWAY Very high L K RO I AD

H D HOBBS ROAD DOOEN SCHOOL ROAD

N A

R distribution of marine affect the viability T Kilometres MI A Waterbody Bare Earth * TRE ROAD ME L Y ERS POLKEMM Reduction in livestock F R ET RO L D OAD AD O N S A G ER

AS 0 5 10 20 R E ± N R O of current fisheries G N SAW PIT SW species KE G AMP ROAD R S- A O productivity and E L GO AD LO ASHEN ROKE-N L NGERENONG S-JACKSON ROAD URCOU ROAD NG ROAD API * Bare Earth is the ConventioOnBRaEElS RFOAaDllow, Stubble Burnt and Stubble to be Burnt management types from the Autumn Survey 2011. 3.2 Fire AR 42 quality from increased heat stress Decreased groundwater resulting in the degraded condition, Impacts on or loss of, groundwater seagrass beds and Impacts on seagrass dependent3.3 ecosystems Land use intensificationcoastal habitats 48 important recruitment beds and coastal sites for many habitats, important 3.4 Invasive species commercial species sites for many species 55 Range extensions of marine pests Impacts on marine threatens fisheries productivity through such as Rock Lobster and Abalone changes to upwelling 3.5 Summary and boundary58 currents

Reduction in groundwater resources available Increase in the for agriculture distribution of marine invasive species

CHAPTER FOUR - MECHANISMS FOR CHANGE, CULTURES OF COMPULSION AND CONNECTIVITY 61 4.1 the role of regulation 61 4.2 Beyond command and control – regulatory support for conservation 70 4.3 administrative monitoring 71 4.4 Shortcomings 74 4.5 resilience 80 4.6 a role for the public and the private landowner 81 4.7 Summary 83 ConTENTS CONTINUED

CHAPTER FIVE - METHODS OF MEETING CHALLENGES ON PRIVATE LAND 84 5.1 private land efforts – inventiveness 85 5.2 other private conservation potential on ‘productive landscapes’ 88 5.3 the levers for change on private land holdings – and a preference hierarchy 89 5.4 payments for Ecosystem Services – the world of incentives 90 5.5 Some Victorian issues with market initiatives 92 5.6 take up – interest and application – a culture of change 95 5.7 Summary 98

CHAPTER SIX - BIOLINKS, CORRIDORS AND THE PRIVATE LAND HOLDER: SHELTER AND CO-BENEFITS 99 6.1 case Study Werribee River Biolink Action Plan Project 100 6.2 Broadcasting incentives to get to landscape scale biolinks and corridors 104 6.3 productive landscapes and biodiversity connectivity co-benefits 108

CHAPTER SEVEN - PROMOTING THE ‘PATTERN THAT CONNECTS’ 110 7.1 Finding a way of valuing the environment, biodiversity and ecosystem services 110 7.2 policy that impacts – incorporating private landowners as partners 111 7.3 ensuring a role for communities 111 7.4 national Wildlife Corridor Plan – trans-boundary ‘whole-of-continent’ possibilities 112 7.5 promoting the ‘pattern that connects’ 115

ENDNOTES 116 o“ “

The Earth’s resources are the basis for our economy, our food supply and our well being. We therefore have to guard nature and act according to the rules. We are stewards: for ourselves, for our economy, for food security, for nature itself and for the generations-to-come. This thinking should be the core of business: working in full co-operation with nature.

Piet W Moerland, CEO, Rabobank Nederlands, signatory to the Natural Capital Declaration at the UN Conference on Sustainable Development Rio + 20, 2012

The Australian Bureau of Statistics values Australia’s natural capital – environmental assets – at $4,574 billion in 2009-2010.

Australian Bureau of Statistics, 2012, Completing the picture. Environmental accounting in practice www.abs.gov.au

The tourism value of Great Barrier Reef is $2,257 million per year (2006-7).

World Bank Wealth Accounting and Valuation of Ecosystem Services (WAVES) found at www.enefi.org

It is important to understand that identifying the value of nature does not suggest that it should have a cost as a price to be traded in the market and hence commodified. The Economics of Ecology and Biodiversity (TEEB) Report to Rio plus 20, 2012

Our anticipated high population growth and continuing economic growth will also put pressure on our increasingly fragile ecosystems. To ameliorate this pressure a suite of policy interventions will need to be considered including environmental taxes where appropriate along with targeted stewardship and statutory duty of care programs. Report on Australia’s Future Tax System 2010 (‘The Henry Review’ @ page xvi)

I believe it is action by the private and not-for-profit sectors, working with government, that holds the key to protecting our endangered species in a competent and affordable manner. Professor Tim Flannery 2012, in Australia’s New Extinctions Quarterly Essay

It is becoming increasingly apparent that we cannot work with the environment as a separate issue. In order to find solutions to the challenges we face now, environmental issues need to be incorporated into other areas. This commission is about making that possible, and using ecosystem services as a concept to help integrate a perspective about the biosphere in various decisions. Thomas Hahn, Stockholm Resilience Centre, member of Swedish Government Commission on Mainstreaming ecosystem services, 2013 Cressy Grasslands tour Department of Sustainability and Environment and Greening Australia, Borrel-a-kandelup. Image CfES, 2011.

7 FOUNDATION PAPER | TWO Land and Biodiversity Victoria: the science, our private land holders, incentives and connectivity | INTRODUCTION

Introduction

“Farmers rely on natural ecosystems to provide important services such as clean air and water, shade and shelter, pollination and healthy soils. Biodiverse ecosystems are stronger and their complexity provides resilience to adapt to climate change.”

peter Forster, Member Environmental Farmers Network Victoria.1

There is a great willingness The ‘pattern that connects’ biodiversity and private landi amongst the general public Land and Biodiversity. Victoria: the science, our private land to conserve Australia’s holders, incentives and connectivity is the second of the three foundation papers promised in Science, Policy, People, my State of the extraordinary biodiversity. Environment Report Framework 2013.2 People across generations, In this foundation paper we discuss biodiversity and ecosystem sectors and cultures services and explore conservation and protection opportunities in private landscapes. A wider discussion of environmental trends and the generously give their time to functions of the public reserve system together with recommendations friends groups, other non- will be provided in the State of the Environment Report 2013. government organisations, Globally, the only positive indicator about biodiversity protection (in the light Landcare, conservation of our obligations under the 2002 Convention on Biological Diversity) is the extension of protected areas and even this has not arrested the precipitous networks and less formal decline in biological diversity and detriment to ecosystem services.3 local organisations. There is a great willingness amongst the general public to conserve Australia’s extraordinary biodiversity. People across generations, sectors and cultures generously give their time to friends groups, other non- government organisations, Landcare, conservation networks and less formal local organisations. We have worked to change our environmental practices over time. Scientists, citizens, administrators, regulators, business, private land owners and the generations-to-come all have an interest and stake in taking care of the environment.4 With 62% of the land base in Victoria under private ownership, including those areas with habitats for the majority of rare, threatened or endangered species, biodiversity conservation effort needs to include private land. This foundation paper is directed at those who are interested in the ways in which conservation on private land can be fostered and supported and the types of policy instruments that can be used to support conservation goals.

i Throughout this paper the phrase the ‘pattern that connects’. It is drawn from the work of Gregory Bateson, in particular his book Mind and Nature. A necessary unity, 1980 Bantam Books, New York. I was introduced to this work by Professor Frank Fisher, a great environmentalist, teacher and mentor who died in 2012.

8 McCubbin, F. 1904 - The pioneer. National Gallery of Victoria.

Project Platypus – tree guard assembly line. Image courtesy of David Fletcher.

studies are showing a real interest in private land stewardship – “...there is a receptive audience in farmers for an integrated conservation– production management message. Our general experience with both croppers and graziers has been that they are willing to consider and, where possible implement, a range of conservation-focused activities to manage biodiversity on their farms, if they are provided with the necessary information. They are often also prepared to provide resources towards this end.”5

9 FOUNDATION PAPER | TWO Land and Biodiversity Victoria: the science, our private land holders, incentives and connectivity | INTRODUCTION

Private landowners are Ethos an intrinsic part of the Underpinning this foundation paperii is the idea of a shared responsibility ‘pattern that connects’. for the biological diversity which provides all of us with essential ecosystem services. A great deal is being done by private landowners in partnerships6 with each other, with non-government organisations (NGOs), business and all tiers of government. A wide range of incentives is being exercised and a broad group of sectors, extending beyond, but including landowners, is involved.7 Private landowners are an intrinsic part of the ‘pattern that connects’. Their ‘biodiversity corridors’ work requires financing, authorisation, mainstreaming and appreciation. This foundation paper is directed towards those in our community who are interested in the ways in which conservation on private land can be fostered and supported.

Our method The defining features of the role of my office include: • working to reflect the environment and its ecosystem services as cultural, social and economic sinews in people’s lives • recognising the importance of really broad community consultation about the environment in which we live and in which we wish to live • developing reports to speak to, and also echo the knowledge and concerns of a broad, regional and metropolitan public. Adhering to these principles will entail telling stories about the work we all do across sectors, cultures and geographies to protect and conserve ecosystems and the services they provide. In keeping with those attributes this foundation paper reflects public comment made in consultative settings. In it we concern ourselves with the cultural, social and economic variables underpinning those comments. We strive to speak to a wide public and, where appropriate, we reference the work being done on the ground, as it has been told to us.

ii See Introduction to Climate Change. Victoria: the science, our people and our state of play for a discussion of purpose of foundation papers.

10 Some background In my first foundation paper –Climate Change. Victoria: the science, our people and our state of play8 – we considered the climate change implications for biodiversity and represented the complexity of the flow-on effects of climate change on both biodiversity and primary production. The climate change and biodiversity impacts infographic from the climate change foundation paper is reproduced here to remind us of the complex and interrelated challenges ahead. The Victorian State of the Environment Report 2008,9 considered land and biodiversity issues at a time of protracted drought. The critical role of biodiversity in overall environmental health was considered, as was the significant economic impacts of the degradation of our land and biodiversity.10 The critical role of biodiversity in overall environmental health was considered, as was the significant economic impacts of the degradation of our land and biodiversity.10

11 FOUNDATION PAPER | TWO Land and Biodiversity Victoria: the science, our private land holders, incentives and connectivity | INTRODUCTION

REDUCED RAINFALL BUSHFIRES HEATWAVES HIGHER AVERAGE TEMPERATURES INTENSE STORMS HIGHER CO2 CONCENTRATIONS

SEA LEVEL RISE SEA SURFACE TEMPERATURE

Changes to phenology altering Fewer numbers Loss of interactions between and less frequent alpine ecosystems species successful breeding of Decreased waterbirds and other opportunities for riverine animals migration and changes to the phenology of species

Decline in wetland and riparian condition from reduced inundation of wetlands and floodplains Decreased soil health limiting plant growth and increasing erosion Changes in the distribution and abundance Degraded condition of species, with possible or loss of fire and local extinctions drought sensitive Extended distribution habitats and greater impacts of pest species

Loss of species sensitive to increased water temperature and reduced river flows Declines in water quality from reduced flows, extreme weather and bushfires Changes in freshwater flows and terrestrial runoff will impact on inshore habitat such as estuaries Changes to the timing of life cycle events such as breeding and seasonal migrations Inland lakes become drier and more saline

Salt water intrusion of coastal Rising ocean freshwater acidification will have wetlands severe consequences for marine species and ecosystems

Changes to the distribution of marine species Decreased groundwater resulting in the degraded condition, or loss of, groundwater Impacts on seagrass dependent ecosystems beds and coastal habitats, important sites for many species

Impacts on marine productivity through changes to upwelling and boundary currents

Increase in the distribution of marine invasive species

Figure 1: Impacts of Climate Change on Biodiversity. Source Climate Change Victoria: the science, our people and our state of play. CfES developed infographic, 2012.

12 REDUCED RAINFALL BUSHFIRES HEATWAVES HIGHER AVERAGE TEMPERATURES INTENSE STORMS HIGHER CO2 CONCENTRATIONS

SEA LEVEL RISE SEA SURFACE TEMPERATURE

Salt water intrusion of coastal Rising ocean freshwater acidification will have wetlands severe consequences for marine species and ecosystems

Impacts on marine productivity through changes to upwelling and boundary currents

Increase in the distribution of marine invasive species

13 FOUNDATION PAPER | TWO Land and Biodiversity Victoria: the science, our private land holders, incentives and connectivity | INTRODUCTION

We are witnessing In Victoria... a coalescence of Across Victoria a vast array of private-public environmental partnerships are underway. Look for example, to the website in interests, opportunities Backbone to Biolinks the north east, the Dartmoor Biodiversity Fund project in the south west, and activities and it is and the Cape Liptrap to Bunurong Biolink Project which is building links apparent that agriculture from Andersons Inlet to Cape Liptrap and the Strzelecki Ranges. Landcare provides a uniquely Victorian illustration of people’s capacity and biodiversity are a to link up and generate better environmental practice. Bodies like Greening great deal more than Australia, Conservation Volunteers Australia (headquartered in Ballarat) simply contiguous zones. and the Trust for Nature, a statutory not-for-profit organisation, auspice and support private efforts extraneous to and in partnerships with government departments and agencies. Geographies, ecological communities and species, from Blackburn and Yellingbo to the Werribee plains, from Orbost to Sealake and the alps to the ocean, are nurtured in this way. We are witnessing a coalescence of interests, opportunities and activities and it is apparent that agriculture and biodiversity are a great deal more than simply contiguous zones. Farming communities visited over the last three years know: “… the environment provides natural resources essential to Australia’s productive capacity and ecosystems that absorb and assimilate the waste generated by people and industry. Sound land and water management practices are essential to maintaining agricultural production … biodiversity enables technological progress …” 11 Based on this, and given the extent of private land holdings in Victoria – 62%12 13 – it is necessary for us as a community to share and capture, celebrate and capitalise on, the interest of private land owners. Environmental grants from all manner of sources, government and private, have already aided change-management in individual settings. An increasing range of incentives and payments for ecosystem services (PES) offer enormous potential for: • private land biodiversity and ecosystem service protection • improvements on individual land holdings • linkages through a systematic biolinks and corridors program. Interventions of this type operate against a backdrop of changes in land use, population increase, fire, increases in pest species and habitat fragmentation, problems with monitoring, enforcement difficulties and inconsistencies14 and climate change. In my foundation paper, Climate Change Victoria: the science, our people and our state of play, we illustrated the compounding and cascading effects of climate change on biodiversity, ecosystem services and agriculture15 and it has been remarked that biodiversity is now vulnerable in novel, uncharted ways.

14 o“ “

Land managers now recognise that formal reserves alone are not sufficient to stem biodiversity loss (Dodd et al. 2011), and recent | initiatives explicitly promote biodiversity conservation on private farmland (Norton and Miller 2000). Habitat remnants on farms are becoming a key focus in the management of biodiversity, and in the development of guidelines for regional biodiversity protection.16 Effective, not just aspirational protection of endangered species, ecological communities and environmental landscapes is a matter of real and pressing community concern. This makes the task of protecting biodiversity all the more urgent. It also means that we have to continue to develop ways to connect fragmented landscapes to render them more resilient. The ‘biolinks’ movement and corridor connectivity, is fundamental to this and links will have to be made beyond the boundaries of public land.

As this work is done, we need to acknowledge it is for our environment and for all of us.

Finally, I would like to acknowledge all of the departments, agencies, academics, technical specialists and community members who have contributed to this foundation paper. In particular, I would like to acknowledge Professor Ary Hoffman FAA, University of Melbourne, for his considered and insightful comments during the development of this foundation paper. I would also like to express my appreciation to Professor Rodney Keenan, University of Melbourne and Director of the Victorian Centre for Climate Change Adaptation Research, Christine Forster, Peter Forster and Michael Nash, University of Melbourne for their assistance in the development of Land and Biodiversity. Victoria: the science, our private landholders, incentives and connectivity.

Professor Kate Auty | PhD, MEnvSc, Dip Int Env Law (UNITAR), BA(Hons)/LL.B, GAICD Commissioner for Environmental Sustainability