2010 International Symposium
Biodiversity Offset &
Ecosystem Adaptation
Michael Crowe
18 January 2010
Presentation outline
1. Biodiversity offsetting in Australia
2 Biodiversity
2.
Bi di
it offsetting
ff tti
iin Vi
Victoria
t i
─ legal framework and policy
3. Delivery of offsets in Victoria
─ native vegetation credits
─ BushBroker
─ design of offset markets
4 Biodiversity offsetting – an example
4.
5. Business and Biodiversity
y Offsetting
g Program
g
Biodiversity offsetting in Australia
In Australia most
environmental and land
use planning matters
are State
responsibilities
NSW and Victoria have
biodiversity offsetting
schemes
New South Wales
Victoria
•
New South Wales Biodiversity Offsetting

Threatened Species Conservation Amendment (BioBanking Act) 2006
 Native Vegetation
g
Act
Assessment
methodology
(Gazette)
Reporting &
review
Biobanking
agreements
t
Biobanking
Biodiversity credits
market
Biobanking
statements
Registers
Trust
Fund
Remnant vegetation - patch
Scattered trees
Native Grassland conservation significance
Definition of offset in Victoria
Off t means measurable
Offset
bl native
ti vegetation
t ti conservation
ti outcomes
t
resulting from any works, or other actions to make reparation for the
loss of native vegetation arising from the removal or destruction of
native vegetation. The gains must be secure and ongoing, and linked
to a specific
p
clearing
g site.
Legal Framework in Victoria
Requirement for offsets
– Planning and Environment Act & regulations
Specification of offsets
– Native Vegetation Management Framework:
 a
an incorporated
co po ated docu
document
e t in tthe
ep
planning
a
g regulations
egu at o s
Management and security of individual offsets
– Statutory agreements
Trading native vegetation credits for offets
– Common law contract
Environment Impact Assessment (including native vegetation impacts)
– Environment Effect Act works through the planning system
Offsetting in Victoria
1989 - Regulation of native vegetation clearing
– a planning permit is required to clear native vegetation
– however offsetting was sporadic and unquantified
2002 – Offset Policy - the Native Vegetation Management Framework
–
–
–
–
–
–
–
native vegetation as a biodiversity surrogate
avoid, minimise and offset
no net loss in extent and quality of native vegetation
additionality
like for like rules (with trading up)
secure and ongoing
Metrics for loss and gain (habitat hectare, LOTs, plants)
2006 – problem
bl
off how
h
to
t deliver
d li
offsets
ff t
Delivering offsets
•
Developers find and establish the offset
– time consuming
– not core business
•
Payment
y
to government
g
agency
g
y ‘in lieu’
– transfer of risk
– price problem in the market
– transparency
•
Market for offsets
– Developer buys sufficient ‘credits’
credits from a landowner
or conservation bank to offset its impacts
– Register of credits
– brokers
Offset market in Victoria - overview
Developers
Native Vegetation Credit
Register
Planning authorities
small impacts – ratios
─ local govt
larger impacts – full metrics
─ state agency
Landowners
BushBroker
Statutory agreement
management & security
Offset Banks
Native vegetation
g
credits
A native vegetation credit is:
 A gain in the extent and or quality of native vegetation
 Recorded on the Register (meets standards)
Native vegetation credits are:
 Created through:
─ Permanent agreements with landowners
─ Land surrender into nature reserves
 Universal unit of trade
 Measured in habitat hectares, large old trees, new plants
Native vegetation credit register
BushBroker
Purpose of the Register:
 Record of ownership of native vegetation credits
 Quality assurance for the creation of credits
Agents
The Native Vegetation Credit Register:
 used by the various traders in Victoria
─ BushBroker,
B hB k iindependent
d
d t traders,
t d
B
BushBroker
hB k agents
t
 operated by the Government (rules apply)
Credit
Register
Other traders
Standards for native vegetation
g
credits
• For registration, Credits must meet the standards of offsets:
 Site assessed - Vegetation Quality Assessment Manual
 Assessment by an accredited field officer
 Subject to a ten year management plan & ongoing maintenance
 Gain calculated according
g to the Vegetation
g
Gain Approach
pp
 Landowner agreement registered on title
 Revegetation according to the Revegetation Planting Standards
BushBroker
BushBroker – a program for trading credits for third party offsets
• Program announced in 2006
• initial government funding, now cost recovery
•
first trade in May 2007
•
>150 trades to date
• total value over aus$8.7 million
Offset market segmentation
g
Risk to supplier increases
Credit types
Demand high and certain
Banks
Demand low and uncertain
Bespoke
• Like-for-like rules determine market segmentation and risk spectrum
─ Low segmentation & diversity → banks and landscape solutions
─ High segmentation & diversity → bespoke and individual site solutions
Offset market design
g
• Identify and deal with risks for buyers,
buyers sellers and the environment
• Develop standards and apply through a register
• Create property rights
• Establish
E t bli h a marketplace
k t l
• Incorporate efficiency (competition, information, transaction costs)
Third party offset example
Offset
site
Area
proposed
for clearing
BushBroker site assessment
BushBroker confirmed assets
• Site definition
• Habitat zones
1A
• EVCs, large trees
1B
• Quality assessment
1C
• Threatened species
• Conservation significance
• Landowner discussion
• Management actions
• Gain score
Site: BB-095-1
100
0
100
200 Meters
Cadastral p
parcel
Site number:
1
2
3
4
5
6
N
Management zone:
A
B
C
D
E
F
Management zones ar e delineated by areas of differ ent vegetation types (E VC) and vegetation quality.
This map has been produc ed by the Bus hBr oker Pr oject team.
Data sourced from DSE /DPI G IS spatial libr ary and field information.
General disclaimer :
Care has been taken to ensure the accuracy of this plan but the S tate of Vic toria and its employees do
not guar antee that the plan is without flaw of any kind or is wholly appropriate for your particular purposes
and ther ef or e disclaims all liability for any er ror, loss or other c onsequence whic h may arise fr om you
relying on any information in this plan.
© State of V ictor ia, Department of Sustainability and Envir onment 2007.
www.dse.vic.gov.au
High quality site
Attributes measured in habitat hectares
tree
py
canopy
cover
size & connectivity
of the patch
large
g
old
trees
understorey
d
t
diversity
recruitment of
young trees
logs & organic litter
Habitat score = 0.90
Medium quality site in cleared landscape
reduced cover
of trees
reduced
recruitment
it
t
reduced
d
d
understorey
diversity
increased cover
of weeds
Habitat score = 0.50
Low quality site in a cleared landscape
greatly reduced
vegetation in
landscape
only
l relict
li trees
increased cover
of weeds
greatly reduced
understorey
di
diversity
it
Habitat score = 0.25
Habitat score
Component
Max. Value
(%)
Large Trees
10
Tree Canopy Cover
5
Understorey
25
'Site
Lack of Weeds
15
Condition'
Regeneration (woody)
10
Component
Organic Litter
5
Logs
5
'Landscape
Landscape
Patch Size
10
Context'
Neighbourhood
10
Component
Distance to Core Area
Total
5
100
Trends
• Offsetting
g for threatened species
p
─ habitat models
─ influence on Conservation Significance
• Legal basis for native vegetation credits
─ credits as p
personal property
p p y
─ the credit Register
• Network
N t
k off agents
t and
d ttraders
d
─ local knowledge of potential offset sites
─ better access for buyers and sellers
BBOP
BBOP is a global partnership of ~ 40 companies, governments, experts and
financial institutions investigating biodiversity offsets
Phase one outcomes:

SIX PILOT PROJECTS:
Portfolio of pilot projects worldwide
demonstrating “no net loss” of
Biodiversity and livelihood benefits.
benefits


TOOLKIT:
‘How
How to’
to toolkit on offset
design and implementation;
Principles.
POLICY:
Influence policy on offsets
to meet conservation and
business objectives
Learning Network
Advisory Committee
Pilot
1
Pilot
2
Secretariat
Pilot
3
Pilot
4
•Policy, Pilots, Guidelines, Training, Communications/Global Forum, and Assurance.
BBOP’s work 2009-2011:
•
POLICY: Country-level partnerships, advice on offset
policy development, land-use/bioregional planning,
aggregated offsets,
offsets conservation banking
•
PILOTS: More & varied pilots (sectors, countries)
•
GUIDELINES: Improved guidelines on offset design and
implementation
•
TRAINING: Training and capacity building
•
COMMUNICATIONS: Communications and BBOP’s work
as a global forum
•
ASSURANCE: Verification and auditing protocols
www.foresttrends.org/biodiversityoffsetprogram
2010 International Symposium
Thank you
Mi h l C
Michael.Crowe@dse.vic.gov.au
@d
i