The Biodiversity Banking and Offset scheme, introduced almost two years ago, will shortly be implemented in New South Wales. It will provide certainty to developers when seeking development consent where there may be a loss to biodiversity values on development sites. Consent authorities will be able to force developers to purchase biodiversity credits in return for development consent. In addition, pitting local council experts against developer experts is likely to be substantially minimised providing significant cost savings to both developers and consent authorities.

For financiers, this is also a major step forward. Biodiversity banking is a business. For example, a biobanking site is an area to which a biobanking statement applies and can earn an income. It follows that in assisting the landowner or the developer in developing that resource, financiers may provide biodiversity finance facilities.

The final steps towards implementation:

Publication of the biobanking assessment methodology in the Gazette

On 11 July 2008 the biobanking assessment methodology was published in the NSW Government Gazette. This is a key element of the scheme.

Establishing a biobank site (the landowner) or issuing a biobanking statement (the developer)

Implementation is proposed by January 2009.

The biodiversity credit calculations used to determine the number of biobanking credits that:

  • a developer is required to purchase (to be issued with a biobanking statement), or
  • a landowner may create to establish a biobanking site (so that the landowner can sell the credits to the developer)

may only be undertaken by an accredited BioBanking Assessor. The accreditation is issued after successful completion of the BioBanking Assessors Course1.

Once the accreditation process has been completed, biobanking sites can be established under clause 127A(7)(b) of the Threatened Species Conservation Act 1995 (Act). While no biobanking sites can be established until the accredited Biobanking Assessors are certified, there are landowners waiting in the wings keen to register biobanking sites. So far, at least 16 expressions of interest have already been provided to the DECC which administers the Act.

The implications

The practical implications of the biodiversity banking and offset scheme are as follows:

  • where a developer proposes to make an application for a biobanking statement they must:
  • undertake an assessment to determine if there will be any loss to the biodiversity values on the development site; and
  • provide the measures to be taken to improve or maintain those values
  • satisfying the 'improve or maintain' test may include the developer purchasing biobanking credits from landowners who have established biobanking sites
  • by using the published methodology, biodiversity values can be calculated to allow for the creation of biobanking credits, and
  • once the biobanking credits have been created, usually by landowners entering into a biobanking agreement, they can be traded or purchased by developers.

Other matters required to be undertaken to make the scheme fully operational

Registers for biobanking sites and biobanking statements have been set up and the information is publically available on DECC's website www.environment.nsw.gov.au, or contact us for further information.

Footnote

1 The course is available through several avenues, including the New South Wales Department of Environment and Climate Change (DECC) which is currently seeking expressions of interest to undertake the course, proposed to commence in November 2008. TAFE Plus is offering accreditation through its DECC assessor's course, which commenced on 27 October 2008. The next course is scheduled for 24 November 2008.