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Biobanking Scheme Overview Scheme Overview This information booklet has been prepared to provide an overview of the Biodiversity Banking and Offsets Scheme. The scheme is implemented through: • Part 7A of the Threatened Species Conservation Act 1995 • Threatened Species Conservation (Biodiversity Banking) Regulation • BioBanking Assessment Methodology The legislation can be downloaded from: www.legislation.nsw.gov.au. More information on the scheme is available on the website of the Department of Environment and Climate Change at: www.environment.nsw.gov.au/threatspec/biobankscheme.htm Published by: Department of Environment and Climate Change 59–61 Goulburn Street PO Box A290 Sydney South 1232 Ph: (02) 9995 5000 (switchboard) Ph: 1300 361 967 (environment information and publications requests) Fax: (02) 9995 5999 TTY: (02) 9211 4723 Email: [email protected] Website: www.environment.nsw.gov.au DECC 2007/528 ISBN 978 1 74122 642 3 November 2007 Printed on environmentally sustainable paper Scheme Overview Contents 1. Addressing biodiversity loss 2 2. Biodiversity offsets 3 3. How does BioBanking work? 4 4. Biobank sites 6 5. The biodiversity credit market 7 6. BioBanking for developers 8 7. BioBanking for conservation 9 8. Credit calculations using the BioBanking Assessment Methodology 10 9. The price of credits 12 10. The BioBanking Trust Fund 14 11. What will make this scheme a success? 15 Scheme Overview 1. Addressing biodiversity loss New South Wales Department of Environment and Climate Change (DECC) The conservation of our endangered animals, to help address the loss of biodiversity and plants and ecosystems is one of the greatest environmental challenges facing Australia threatened species. today. The key reason for our historically Creating a market in biodiversity credits gives high extinction rates is habitat degradation incentives to protect biodiversity values. and loss, initially from over-grazing and BioBanking will: clearing for agriculture, and more recently • provide a transparent, consistent and from the clearing of native vegetation for robust framework for the assessment and urban development. management of biodiversity offsets Innovative approaches are needed to tackle • create new opportunities for conservation the challenge of balancing development on privately owned land needs (to provide the community with new housing, jobs and amenities), while also • provide permanent security and conserving biodiversity for the future. management for biodiversity offsets The Biodiversity Banking and Offsets Scheme • provide a secure mechanism for investment (BioBanking) has been established by the in biodiversity conservation. BioBanking provides new opportunities for conservation on privately-owned land. Photo: A. Remnant/DECC 2 2. Biodiversity off sets • Secure. The biodiversity offset is provided by the biobank site from which the credits Biodiversity offsets have commonly been used are generated. to counterbalance the impact of development on biodiversity, but they have been organised • Transparent. Biobanking statements and on a case-by-case basis until now. credit transactions are on the public register. While this flexibility has resulted in some good • Strategic. Establishing a biodiversity biodiversity outcomes, there is generally no credit market enables offsets to be more guarantee that the offset will be managed for strategically located. This encourages conservation or that there will not be pressure participants to locate offsets on large to develop the land in the future. BioBanking parcels of land, in areas better for provides a consistent, robust and transparent conservation that can compensate for approach for offsets. Under BioBanking, offsets a number of developments, rather than will be: piecemeal efforts negotiated individually. • Measurable. Offset requirements will be Without a market framework, offset sites must known up-front, allowing developers to be negotiated and established separately for minimise the impacts of development and each development. There is no incentive for plan for offsets. the offset area to be better than the minimum • Consistent. A rule-based approach required, and there are few options for ensuring determines credit requirements. the long-term management of such areas. Figure 1 Using offsets to help address biodiversity loss Development can have ... but by developing ... and by using + a negative impact on with proper care and offsets we can biodiversity... control, the impact maintain biodiversity can be reduced ... outcomes biodiversity offsets Impact on biodiversity - 3 Scheme Overview 3. How does BioBanking work? income and fund the future management of the site. Developers can buy the credits to The Biodiversity Banking and Offsets Scheme offset impacts from their development and to helps to address the loss of biodiversity in NSW. meet the improve or maintain test. It achieves this by enabling landowners in NSW to establish biobank sites to secure conservation Developers will need to source particular outcomes and offset impacts on biodiversity types of credits in accordance with the offset values. rules in the methodology: BioBanking establishes an ‘improve or • Ecosystem credits can only be used to maintain’ test for biodiversity values. offset biodiversity impacts in the same Improving or maintaining biodiversity ecological community, or in another values means avoiding important areas for community of the same formation that conservation of biodiversity values, and has an equal or greater percentage of offsetting impacts on other areas. The offsets land cleared and the same predicted are measured in terms of credits, using the threatened species. BioBanking Assessment Methodology. The • Species credits can only be used to scheme requires participating developers to offset biodiversity impacts on the same meet this improve or maintain test based on threatened species. the impact of their proposed development. Credits are created by the landowner, who There may also be demand for the credits establishes a biobank site and commits to from organisations seeking to secure enhancing and protecting biodiversity values. conservation outcomes. Those buying credits The credits represent an improvement in the are securing the conservation of biodiversity condition of biodiversity values such as an in perpetuity. improvement in the habitat or an increase in the If participants fail to meet their commitments habitat or population of a threatened species. under the scheme, penalties can be applied. The scheme creates a market for the credits. The performance of participants is monitored Landowners can sell the credits to provide by DECC. 4 Scheme administration The scope of the scheme BioBanking will be managed by DECC. BioBanking will commence in 2008. The core functions of DECC will be to: The scheme will only address biodiversity values • register biobank agreements including threatened species listed under the • issue biobanking statements Threatened Species Conservation Act 1995. • manage the public registers BioBanking does not affect local government’s • audit biobank sites role in land use planning and development • enforce biobanking agreements and control. It provides a systematic mechanism for statements assessing and offsetting impacts on biodiversity. • prepare annual reports on the scheme. The scheme applies to: Catchment management authorities will be • developments under Part 4 and activities able to help landowners establish biobank under Part 5 of the Environmental Planning sites where appropriate. Local government and and Assessment Act 1979 that are required to other NSW State Government agencies will undertake the threatened species assessment be involved in the scheme administration in of significance accordance with the legislation: • development projects under Part 3A of the • Local government will incorporate Environmental Planning and Assessment Act biobanking statements into the 1979 (the Minister for Planning may require development consent. that Part 3A developments offset impacts in • Department of Planning will be consulted accordance with the biobanking assessment before biobanking statements are issued methodology) (where required). • the establishment of biobank sites on both • Department of Primary Industries private and public land including land to will be consulted on biobanking agreements. which the Native Vegetation Act 2003 applies. • Department of Lands will register biobanking A scheme review will be conducted after the agreements on land title. first two years of operation. 5 Scheme Overview 4. Biobank sites establish a biobank site by signing up to a biobanking agreement. Landowners are able to generate biodiversity credits by agreeing to carry out a set of Landholders anywhere across NSW can management actions which, over time, are voluntarily establish a biobank site to generate expected to improve biodiversity values. credits, except for land that is already managed Management actions are set out in the or expected to be managed for biodiversity biobanking agreement and may include the conservation. The consent of all owners and management of grazing, fire, weeds, human certain parties with an interest in the land is disturbance and other actions, depending on required under the legislation. the threatened species present at the site. Landowners can decide which areas of their Biodiversity credits are issued once a land they will include as the biobank site, biobanking agreement has been approved; allowing different economic activities
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