Biodiversity Certification: What are the potential outcomes? Dr Steven Ward

Biodiversity Certification: What are the potential outcomes? Dr Steven Ward

International Around the world: 39 existing offset programs 25 programs under development Estimate: >86,000 ha conserved per year Market size $1.8 - $2.9 billion p.a. at minimum Information from State of Biodiversity Markets Report 2010

NSW Offset Schemes Negotiated offsets PVP Biobanking Biodiversity Certification Also local schemes: Eg. Liverpool Council Koala Plans of Management (SEPP44)

Hypothetical Visualisation

Broad Steps 1. Identify eco values impacted 2. Consider avoidance / mitigation Seek to avoid Red flags 3. Discussion(s) with approval agency 4. Investigate offset locations/outcomes: Onsite Offsite 5. Seek approval

Credits Required Perform fieldwork plots / survey Calculate credits required Ecosystem credits (ie. vegetation) Average multiplier is used Species Credits As per biobanking

In General Offsets Can Be... Protection of ecological values Eg. zoning, conservation agreement, covenant, Biobanking agreement Positive ecological management Timeframe can vary Required management can vary Financial contribution Combination of the above

Credits Awarded (1) Under Biodiversity Certification: Funded & Managed offset = 100% credits Biobanking site Transfer to DECCW Managed offset = 90% credits Conservation Agreements Nature Conservation Trust Agreement PVP

Credits Awarded (2) Under Biodiversity Certification (con t): Planning scheme offset = 25% credits Convert from other zoning to E2 or E3 PLUS development controls Retained vegetation (no conservation measures) = 0 credits Financial contribution

Acknowledgement Results from 2 ELA assessments used Used with permission of Wyong Shire Council Two sites are proposed growth areas Warnervale Town Centre (residential / commercial) Wyong Employment Zone (industrial)

Caveats Results from the DRAFT methodology Revised methodology signed by Minister in week of 14 th Feb 2011 Changes to methodology may include: Landscape scores Number of plots required Red flag variation rules

Warnervale Town Centre (WTC) 12.7 ha 86.3 ha 14.4 ha Total 113.4 ha

WTC Impact Clearing proposed would require: 1,631 ecosystem credits (of 3 different vegetation types) EEC (small area) retained in open space Threatened daisy (Heath Wrinklewort) dealt with separately No red flags

WTC Credits Generated Conservation lands Heath Wrinklewort Reserve Riparian corridor Ecosystem credits created: Funded & managed offset = 48 credits Managed offset = 44 credits Planning scheme offset = 12 credits

WTC Outcome Ecosystem credits Required = 1,631 credits Generated = 44 credits Outcome = -1,587 credits Approx 177 228 ha of additional ecology offset Offset ratio (offset : development) 2.2 : 1 ratio to 2.8 : 1 ratio

WTC Financial Offset State Infrastructure Contribution (SIC) $4,000,000 to a DECCW conservation fund SIC already gazetted Is this enough?

What is likely to influence the cost of Credits? Biobank area 40, 100, 500, 1000 & 5000 ha. Large sites can significantly reduce relative mgt costs Biobank condition (influences management costs) Good, Moderate, Low condition Influences number of credits generated per hectare $100 s to multiple $1000 s per ha per year. Land value (location) & opportunities forgone e.g. Rural areas $250, $500, $1,000, $5,000/ha Coastal & close to existing infrastructure $10,000, $20,000, $50,000, $100,000, $200,000 per ha (non residential) Availability of land to generate certain credit types It may be very difficult to establish biobanks with certain veg types in some areas

WTC Is $4 million enough? Recap $4 million SIC Can it generate 177 228 ha eco offset? Yes, if... Purchase one large site at ~$8,000 ha Cost of fund for in perpetuity eco management is ~$2 million Challenge is locating a site

Wyong Employment Zone (WEZ) Excluded from Analysis 267.4 ha 260.6 ha 51.4 ha Total 579.4 ha

WEZ Impact Clearing proposed would require: 3,419 ecosystem credits (of 8 different vegetation types) 4,779 species credits for 5 threatened plant species Red flags 21.2 ha of EEC s Impact on 2 threatened plant species

WEZ Red Flag Areas Red Flag Areas

WEZ Credits Generated Ecosystem credits created: Funded & managed = 1,839 credits Managed = 1,655 credits Planning scheme = 460 credits Species Credits Funded & managed = 24,402 credits Managed offset = 21,962 credits, Planning scheme = 6,101 credits.

WEZ Outcome Outcome Extra 1,764 ecosystem credits needed Large surplus of species credits, BUT: 3 threatened plants in surplus 2 threatened plants in deficit Estimate 257 331 ha of additional ecology offset Ecosystem Offset ratio 2.0 : 1 ratio to 2.3 : 1 ratio

Challenges for Biodiversity Certification Access to lands Significant up front time and cost Changes to Masterplan Resolving unknowns eg. open space Sourcing offset sites or credits: Within bio-certification area Outside bio-certification area Needs strong lead agency

Benefits of Biodiversity Certification Resolves ecology up front Subsequent developments do not require assessment under s.5a EP&A Act Time / cost savings Offsets are resolved Potential for strategic eco outcomes Early advice and input Integrate eco with masterplan

Preliminary Offset Calculation Preliminary calculations Indicative calculation Desktop or rapid site inspection Informs client what outcomes may result Constraints / opportunity assessment Due diligence Subsequent detailed field validation

What else to consider? Ecological corridors or priority areas Other approvals Commonwealth (EPBC Act) Riparian (Water Management Act 2000) Koala Habitat (SEPP44) Treatment of offset sites Bushfire management Carbon bio-sequestration

Wyong Council Comments LEP and Biodiversity Certification Two separate processes & Ministers Better for single agency to deal with both Red flag variations Must be endorsed by the Minister for Environment and Climate Change Decisions come too late in the process Yes/no decision needed much earlier

Discussion Stakeholder communication is critical Commonwealth EPBC Act Use Commonwealth Strategic Assessments? NSW Liberal Party Proposes to abolish Part 3A Will improve or maintain be the new standard for ecology?

Eco Logical Australia Services include: Environmental offsets Biobanking, Biodiversity certification, and carbon Ecological surveys and assessment Environmental planning and approvals Bushfire and environmental services Natural resource management Remote sensing and GIS