John Seidel

Principal Project Officer, OEH

25 September 2015

Presentation at the

16th Global Conference on Environmental Taxation

University Technology Sydney

2

Presentation outline

NSW context for biodiversity offsets

Features of the BioBanking program

Implementation experiences and challenges

How the market has valued different types of biodiversity

3

NSW context of biodiversity

offsets

4

Biodiversity offsets

Used to counterbalance impacts of development on biodiversity

Follow efforts to avoid and minimise impacts

Often required as part of a planning approval

Can be required by planning authorities outside these formal processes and negotiated case by case

Majority occurs as part of the approval of state significant projects

5

Policy challenges

OEH involved in negotiating offsets since 1995

Negotiated approach can deliver good outcomes but

considerable variation in:

• scientific basis of assessments

• quantity and quality of offsets

• management, funding, responsibility for offsets

• legal security of offsets

• Location, monitoring/compliance of offsets

6

What is BioBanking?

Voluntary market-based offset

scheme (TSC Act)

Complements other regulated

impact assessment processes

Utilises metrics to assess

biodiversity value and quantify

offset requirements

7

Features of BioBanking

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Credit system created to provide common measure of impact/gain

Comprehensive framework for offset land that includes:

• Accreditation of assessors

• Integration with NSW Planning framework

• Biobanking Trust Fund

• Compliance and monitoring framework

• Security of outcomes

Supports delivery of offsets/PLC

outcomes for a range of programs

Overview of BioBanking

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Key concepts

ecosystems credits plant community types

species credits All other threatened species

Conservation/Supply Development/Demand

Landowner Proponent

Biobank site Development site

AGREEMENT (POM) Development consent

Create & sell credits Buy credits

Management actions Retire credits

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Benefits for private land

conservation & government

BioBanking agreements provide:

• Assessment and recording

• Active management

• Annual payments to

landowners

• Secured on title

• Reporting/auditing

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• Reduced negotiations on appropriateness of an

offset

• Upfront assessment and offset requirements

• Transparent decision making and rules

• Flexibility in achieving offset requirements

Benefits for industry &

government

12

Implementation experience

13

Overview of outcomes to

date

46 approved agreements (14

applications)

Concentrated in western Sydney

and lower Hunter valley

Over 9,650 hectares of land

Increasing diversification

Range in area from 10 ha to

1,500 ha

Average biobank size –

45 ha greater Sydney region

350 ha regional NSW

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What biodiversity values are

represented on biobank sites?

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

GrassyWoodlands

DrySclerophyll

(shrub/grass)

Drysclerophyll

forests(shrubby)

Grasslands WetSclerophyll

(grassy)

Wetsclerophyll

forest(shrubby)

Rainforests ForestedWetlands

Heathlands SalineWetlands

FreshwaterWetlands

Total area of each formation that is an EEC Total area of each formation that is not an EEC/CEEC

• 89 Plant Community Types across 11 formations/sub formations

• 19 different endangered or critically endangered ecological communities

• Almost 3,000 ha or 50% of approved sites contain an EEC/CEEC

• Habitat for a wide range of threatened native flora and fauna

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Improving vegetation condition

0

5

10

15

20

25

30

35

40

0

500

1,000

1,500

2,000

2,500

3,000

0 - 10 >10 - 20 > 20 -30 > 30- 40 > 40 - 50 > 50 - 60 > 60 - 70 >70 - 80 > 80 - 90 > 90 - 100

Pre

dit

ed g

ain

in c

on

dit

ion

fro

m m

anag

emen

t

Are

of

vege

tati

on

in e

ach

co

nd

itio

n p

erce

nti

le

Vegetation condition (percentile scores)

Condition of vegetation on biobank sites (approved and submitted)

Ha vegetation per condition percentile Average gain Max gain in condition

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The market value of improving

biodiversity

Total trade of over 12,500 credits

Total trade valued almost $67.5M

Credit prices range from $1,100 - $31,465

Capital value in the BTF is $43.5M

Annual stewardship payments to landholders = $6.3M

Buyer developer, government,

conservationist,

philanthropist

Biobank site owner commits

to

protect, manage and improve

biodiversity

BioBanking

Trust Fund

Annual payments for

management actions

Part B

Part A

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Implementation challenges

• Clear purpose

• Stability

• Capacity building and

engagement

• Creating a credit

market

• Cost effective

• Quantifying

biodiversity values

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How the market values

different types of biodiversity

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Cumberland Plain Woodland

• Listed as critically

endangered

• Only known in one region

• Over 420 ha in agreements

• total trades of over $35M –

27% of volume/ 53% of

value

Examples of how the credit

market values biodiversity

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$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

$100,000.00

Co

st o

f C

PW

cre

dit

s p

er

trad

e

Number of trades in CPW credits since May 2012

In-p

erp

etu

ity

con

serv

atio

n c

ost

of

CP

W p

er

he

ctar

e

Market value of Cumberland Plain Woodland credits

CPW - $87,188

Shale sandstone transition forest - $87,188

Average of all other PCTs (Greater Sydney) -

$87,188

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Examples of how the credit

market values biodiversity

Shale Sandstone Transition Forest

• Endangered on TSC Act &

EPBC Act

• Over 180 ha in agreements

• In perpetuity stewardship

conservation value of SSTF

per ha is about $41,000

Lower Hunter Valley

• Over 1050 ha in agreements

• Variety of ecosystems

• value of trades almost $9 M

• In perpetuity stewardship

conservation value almost

$15,000/ ha

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Biobanking program:

www.environment.nsw.gov.au/biobanking/

NSW Offsets Policy for Major Projects

http://www.environment.nsw.gov.au/biodivoffsets/bioffsetspol.htm

Email:

biobanking@environment.nsw.gov.au

Discussion/further information