In 2006, NSW became the first state in Australia to introduce a legislative biodiversity offset scheme. This scheme, the NSW BioBanking and Offset Scheme, is a voluntary alternative to the traditional environment impact assessment pathways. The scheme is currently under review, with a focus on the overall framework and the assessment methodology.
While the provision of offsets has become common practice over the past 15 years, the getting of those offsets remains a contentious issue in a region suffering a chronic housing shortage. Several developments have been scuttled by impractical and inconsistent criteria or ratios which take no account of commercial realties and ignore the socio-economic benefits.
The Hunter chapter will lead the NSW Division’s submission to the review and believes an opportunity exists to ensure the regional economy is supported while at the same time improving biodiversity outcomes.
Initial research and consultations shows;
-
Massive legislative overlay
-
Only 10 BioBanking Agreements have been made in over 5 years
-
A small army of accredited BioBanking Assessors exists in NSW
-
Barriers to landowners establishing BioBanking sites
-
Disincentives for developers to use BioBanking
Perhaps the most pressing problems for the scheme are the supply and demand constraints. The strength of the scheme lies in the ability to transparently quantify offset requirements and then purchase biodiversity credits from an open and competitive market. Unfortunately, there is still no clear price signal and a lack of targeted marketing. This has resulted in a lack of credit supply, low awareness and a take-up rate well below OEH expectations.
There have been some successes, including the Sydney Growth Centres, and several agreements connected with large resource and infrastructure projects in the Hunter are close to finalisation. In some cases, the scheme has proved more timely and cost effective at the early stages of a development proposal.
Our submission will provide government with guidance on building on those successes by;
-
Reducing the complexity of the assessment process
-
Mitigating transaction costs
-
Establishing brokers
-
Increasing the tradability of credits
-
Creating flexibility in dealing with credit shortfalls
-
Removal of dual approvals for rural residential development
-
Ability to contribute to an “Offset Fund” for small impacts
Submissions close July 9. Members are encouraged to contact Andrew Fletcher, NSW Regional Director – Hunter, with any contributions.
