Government policy opportunities and challenges for private sector offsets 7 th November Jez Bird Principal Consultant

Transcription

1 Government policy opportunities and challenges for private sector offsets 7 th November 2013 Jez Bird Principal Consultant

2 The Biodiversity Consultancy Small, UK-based consultancy / think-tank Provide technical support and guidance to extractive industries on managing biodiversity risks Policy / tool development with governments and NGOs Focus on No Net Loss, the mitigation hierarchy and offset design Clients: BirdLife, EBRD, European Union, FFI, Government of New Zealand, Government of Madagascar, IADB, IFC, IUCN, Rio Tinto, Shell, Tullow, etc. What is our driver for involvement today? We believe that biodiversity conservation can most effectively be achieved by development and implementation of effective biodiversity policies by multinational companies, governments, and financial institutions.

3 Our Research

4 Key lessons from clients: Corporate need for a level and predictable playing field through clear government legislation/guidance Offset targets linked to participatory conservation/development goals in national policy/plans (in order to ensure stakeholder support for things companies are forced to do) Clear implementation options are needed what happens in the long term? Offsetting is different for large and small companies

5 Clear legislation/guidance Theory Good schemes will fulfil the needs of different offset drivers - regulatory offset requirements need to be as stringent as corporate commitments or financial institution s requirements Schemes will be better followed by international companies if requirements are similar between countries Drivers of offsets International Financial Institutions Government policy Corporate risk management the use of inappropriate offsets can be reduced by greater adherence to the mitigation hierarchy some impacts are not offsettable because they cause irreversible damage to biodiversity for example the extinction of a species or a habitat (this can be applied at national or global level)

6 Clear legislation/guidance Practice Companies want a level and predictable playing field: Clearly defined, stable offset policies are needed that describe offset scale, implementation options, timeframe etc. these factors can then influence business decisions The requirements need to be applied consistently to all operators for fairness. For example companies don t necessarily mind no go conditions in Protected Areas as long as the approach is consistent

7 Linking offset targets to participatory conservation /development goals A policy that satisfies government but not external stakeholders is unhelpful to companies Offsetting targets and no net loss definitions should be linked to biodiversity conservation goals and development goals in separate policies and plans (such as national or provincial systematic conservation plans) Stakeholder engagement is need for development of a conservation plan as a spatial framework for offsetting

8 Clear implementation options High levels of offset underachievement to date. Improvement requires: greater capacity in environment departments, regulators and the judiciary; sanctions for non-compliance Permanence is a key requirement in theory / policy but a major failure in practice - companies don t want to hear that a site where they are offsetting is then slated for development. Similarly they don t want to be burden with a permanent commitment Companies are not experienced offsetters they need clear options for who can implement offsets on their behalf External criticism - offsetting offers uncertain gains tomorrow to compensate for certain losses today

9 Clear implementation options ICMM IUCN (2012) Independent report on biodiversity offsets

10 Differences between large and small companies Small companies have low impacts but high transaction costs Challenges often smaller profit margins, less developed systems/policies, fewer in-house expertise; will increasingly compete for offsets as they compete with resources Opportunities more nimble, creative, quicker to adapt; easier decisionmaking authority; easier to roll out policies; (national) aggregate offset opportunities

11 Conclusions Companies want: Clear, stable, standardised offset policies Policies that are aligned with and guided by stakeholder values Reasonable transaction costs Clear options for offset implementation and transfer of responsibilities Offsets are not a silver bullet Acceptance of low quality offsetting might degrade legislation facilitating development where it wouldn't otherwise have taken place. Always follow existing legislation and always follow the mitigation hierarchy