Paradise lost The weakening and widening of NSW biodiversity offsetting schemes, 2005-2016 Copyright: © 2016 Nature Conservation Council of NSW The Nature Conservation Council of New South Wales (NCC) is the peak environmental organisation for NSW, representing more than 150 member societies across the state. Our members have a strong interest in planning and development issues and are strongly Citation: Nature Conservation Council of NSW (2016) committed to securing positive environmental and Paradise Lost - The weakening and widening of NSW social outcomes in their local area. biodiversity offsetting schemes, 2005-2016 Reproduction of this publication for educational or Available from other non-commercial purposes is authorised without Nature Conservation Council of NSW prior written permission from the copyright holder 14/338 Pitt Street, Sydney provided that the source is fully acknowledged. Reproduction of this publication for resale or other Phone: 02 9516 1488 commercial purposes is prohibited without prior Email: [email protected] written consent of the copyright owner. Website: www.nature.org.au CONTENTS 1. EXECUTIVE SUMMARY........................................................................................5 2. RECOMMENDATIONS...........................................................................................9 3. WHAT IS BIODIVERSITY?.....................................................................................13 4. BIODIVERSITY OFFSETTING – AN OVERVIEW................................................15 5. CURRENT BIODIVERSITY OFFSETTING SCHEMES IN NSW.........................21 6. THE FUTURE OF OFFSETTING IN NSW...........................................................31 APPENDIX 1. REVIEW OF BIODIVERSITY OFFSETTING PRINCIPLES..................37 APPENDIX 2. CASE STUDIES OF BIODIVERSITY OFFSETTING IN NSW................40 APPENDIX 3. FEDERAL BIODIVERSITY OFFSETTING POLICY AND SENATE RECOMMENDATIONS EPBC ACT ENVIRONMENTAL OFFSETS POLICY...............66 REFERENCES....................................................................................................70 1. EXECUTIVE SUMMARY Biodiversity is fundamental to our wellbeing and KEY FINDINGS prosperity because it provides the basic requirements of life and underpins our economy. Biodiversity offsetting schemes in NSW Our bushland and native animals are integral to have failed to deliver the promised our national identity, an essential part of what outcomes. makes Australia and Australians unique. The performance of five existing offsets schemes was examined through the lens of eight Case Biodiversity in NSW, however, is in steady Studies in the state’s northwest, southwest, decline. Almost 80 species of plants and animals Hunter Valley, and in Sydney. These Case have become extinct in the state since Studies demonstrated that biodiversity offsetting Europeans arrived, and there are currently a in NSW is failing to deliver the environmental further 999 threatened with extinction, including outcomes governments and policy makers have 59% of all mammals, 34% of amphibians and 30% promised. In one Case Study (Boggabri/Maules of birds. Clearing of native vegetation and habitat Creek), biodiversity outcomes were deemed to modification are the greatest threats to the be “Disastrous”. In five others, outcomes were survival of the great majority of species on the “Poor” (Warkworth, Mount Owen, Huntlee, threatened list. After 200 years of settlement, Albury, Kellyville). Only two Case Studies were NSW has lost almost half of its bushland through found to have resulted in “Adequate” biodiversity land clearing and only 9% of that which is left is in outcomes (Namoi, Wagga Wagga), while none good condition. (See Section 3.) resulted in outcomes deemed “Good”. (See Table 2 below and Section 5.) The continuing loss of biodiversity in NSW poses a significant challenge for governments who Biodiversity offsetting schemes in NSW have a responsibility to protect species and have become weaker as standards have ecosystems and a desire to promote economic slipped. growth and create jobs by allowing land clearing for urban development, infrastructure, agriculture, A review of the key features of the five mining and other major projects. State and biodiversity offset schemes in operation in NSW federal governments in Australia, following the since 2005 found the later models contained lead of governments around the world, have fewer best-practice principles and standards embraced biodiversity offsetting in a belief that it than the earlier ones. Schemes were judged on can resolve this conundrum and deliver growth their inclusion of eight features essential for that is ecologically sustainable. In theory, positive environmental outcomes. Only the first offsetting achieves this by allowing the loss of offsets scheme (the Environmental Outcomes biodiversity values at a development site on the Assessment Methodology under the Native condition that biodiversity values at offset sites Vegetation Act) contained all eight features. The are protected and enhanced, ensuring there is Biodiversity Offsets Policy for Major Projects no net loss of values across all sites. introduced by the Baird government in 2014 contained only one. (See Table 1 below and The NSW Government has used biodiversity Section 6.) offsetting for more than a decade as an adjunct to land clearing, planning and threatened species conservation laws. The government is The Draft Biodiversity Assessment poised to significantly expand its use through Methodology contains fewer best- the introduction of a Biodiversity Offsets practice principles and standards than Methodology (BAM) that is a central pillar of its any previous scheme and will likely new biodiversity conservation and land-clearing deliver worse environmental outcomes. laws, including a new Biodiversity Conservation Many of the weaknesses and few of the strengths Act and Local Land Services Amendment Act. of earlier offsets schemes have been carried This report provides a timely review of the forward into the new Biodiversity Conservation performance of biodiversity offsets policies in NSW and a critical appraisal of the Draft Act and Draft Biodiversity Assessment Biodiversity Assessment Methodology that the Methodology, which the government intends to government proposes to introduce to supersede implement in 2017. The government is proceeding them. with this model despite warnings from leading ● 5 scientists, conservationists and lawyers who have CONCLUSION identified many concerns. For example: Biodiversity offsets schemes in NSW are failing to • Clear objectives for protecting biodiversity deliver the environmental outcomes governments are lacking and policy makers have promised and the design • There is no consideration of impacts on and performance of these schemes is declining. water quality, salinity and soil quality The proposed Draft Biodiversity Offsets • It does not provide absolute protection (red Methodology (BAM) sets lower standards and flags or ‘no-go zones) for areas of high drifts further from best practice than the conservation value underperforming schemes it is intended to • The like-for-like principle is undermined replace and will consequently be less effective as • Supplementary measures are allowed in lieu a conservation measure. Implementing the BAM of genuine offsets will in fact add extinction pressures to the very • Mine site rehabilitation can be used as an species and ecological communities offsetting is offset credit supposed to protect by facilitating the more rapid • Developers can pay money into a fund and widespread destruction of threatened rather than find an appropriate offset site species habitat across NSW. • Offset obligations can be ‘discounted’ under the discretion of the Minister RECOMMENDATIONS • Offset areas are not guaranteed protection This report recommends 13 actions the in perpetuity government must take to ensure its offsetting • The new scheme is unlikely to meet Federal schemes maintain and improve biodiversity in standards (See Section 6.) NSW. (See Section 2.) Table 1: Summary of Case Study scores 6. 3. Wagga 7. 8. Mt CASE STUDY 1. Namoi 2. Kellyville 4. Albury 5. Huntlee Boggabri/ Wagga Warkworth Owen Maules Ck Biodiversity Biodiversity OEH OEH OEH SCHEME EOAM BioBanking BOMP Certification Certification Principles principles principles CRITERIA Avoid 4 1 4 1 0 0 0 1 Equivalence 3 1 5 5 2 1 2 3 Security 3 3 2 3 3 0 0 2 Net gain 3 0 3 2 0 0 0 1 Additionality 3 1 2 2 1 1 1 2 Enforceable 3 5 1 3 4 1 3 3 Monitoring 1 4 0 0 2 1 2 2 Transparency 3 4 4 4 4 4 4 3 Total 23/40 19/40 21/40 20/40 16/40 8/40 12/40 17/40 Assessment Adequate Poor Adequate Poor Poor Disastrous Poor Poor Detailed assessments of each Case Study is contained in Appendix 2. 6 ● Table 2: Desirable features of offsetting schemes in NSW. Environmental Biodiversity OEH Principles Biodiversity Draft BioBanking Outcomes Certification for Biodiversity Offsets Policy Biodiversity Assessment FEATURE Assessment Assessment Offsetting for Major Assessment Methodology Methodology Methodology (EP&A Act Projects Methodology (TSCA 1995) (NVA 2003) (TSCA 1995) 1979) (EP&A Act 1979) (BC Bill 2016) Excludes discounting of YES YES YES YES YES NO offsets credits Excludes supplementary YES YES YES YES NO NO measures Excludes mine YES YES YES YES NO NO rehabilitation Clear standard for environmental YES YES YES YES NO Partial/pending outcomes Does not allow payment in lieu of YES YES YES YES Partial/pending NO genuine offsets (Offsets Fund) Red