The Integration of Biodiversity Values in Urban Development Projects: the Australian Experience with Biodiversity Offsets (NSW)

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The Integration of Biodiversity Values in Urban Development Projects: the Australian Experience with Biodiversity Offsets (NSW) Valérie Dupont PhD student - FRESH scholar Catholic University of Louvain

II. Context: Biodiversity in Australia Unique natural heritage

200 years of European Settlement

Urban growth

Biodiversity Conservation in Urban Areas Prohibition to harm threatened species Which biodiversity? (TSC Act 1995) Species Species Populations Ecological Communities Type of listing Vulnerable Endangered Critically endangered Presumed extinct Protection Offence to harm a threatened species or its habitat (NPW Act Part 8A) Defense: development consent under the EPA Act 1979 (NPW Act Part 8A)

Procedural Protection under EPA Act Integration of threatened species consideration within the planning system Preliminary assessment of likely impacts (7 part test) Species Impact Statement Concurrence of OEH and Public exhibition Competent authority Local Councils Department of Planning Major Projects Decision No substantive criteria Natural environment is only a matter for consideration among others (EPAA s79c) CCL: No absolute protection

Formal Framework: BioBanking (Biodiversity Banking and Offset Scheme ) 2006 TSCA Amendments Formal Framework for Biodiversity Offsets Pooling and trading of Biodiversity Offsets Similar to Conservation Banking, USA Rationale for the scheme Addressing the clearing of native vegetation for urban development and continued cumulative loss of biodiversity Recognizing the market value of biodiversity Creating new opportunities for private sector conservation management of land Adopting a measurable, consistent, transparent, and scientificallybased assessment methodology Voluntary

Main features: Goal: Maintain or Improve biodiversity values Four main elements Establishment of a biobank site by means of a Biobanking Agreement Creation of biodiversity credits representing the future amelioration of the site and the management actions. Purchase of credits by developers and use of them as an offset for impacts on biodiversity values (Biobanking Statement) Scientific and consistent methodology for assessing impacts and offsetting measures (Biobanking Assessment Methodology) Integration with Planning System (TSCA s127zo) Development projects are deemed not likely to significantly affect any threatened species => no SIS needed Consent authority is not required to take into consideration the likely impacts of the development on biodiversity values

Review of the scheme Alternative to Assessment of Significance / SIS route More than an offset scheme Apply different standard, assessment and procedure Scheme not widely used in practice Only 27 Biobanking Agreement and 10 Biobanking Statement registered Part of the scheme is used Biobanking Assessment Methodology Exchange of credits exp: State Significant Infrastructure (EPAA s115zc) In 2012, OEH started a review of the scheme and drafted an amended methodology Main issues identified: A voluntary alternative and a high standard Credit availability and market operation Complexity of the scheme and misconceptions

Comparison Research question Research question Are projects assessed under the Biobanking route and those assessed under the SIS route subject to equivalent standards and procedure? Hypothesis the Biobanking route has higher standards, more stringent requirements and complex procedures than the traditional SIS route. As such, this later route represents an easy and more flexible alternative, and can play as a disincentive for developers to enter the Biobanking route. Issues Very few Species Impact Statement Many different options for developers Method Biobanking scheme v. Assessment of significance 7 Part test for regular projects

Legal and Institutional framework BIOBANKING Negotiated offsets Legal Framework for offsets Part 7A of the TSC Act Binding regulation and methodology No account of offsets in legislation Practice of consent authorities Sectorial policy documents or nonbinding principles Competent Authority Office of Environment and Heritage Record Biobanking registers for statements, agreements, credits and transactions. Local Councils Internal records?

Decision criteria Biobanking Overall standard Maintain or Improve standard (TSCA s127zl(1) Negotiated offset No legislative standard Case law and non-binding principles Practice: No significant impact Mitigation Hierarchy No express mention Built in the scheme Avoidance Red-flagged areas (high biodiversity conservation values) Minimization Cost effective onsite measures on a case by (adapté de INR, 2007) case basis Offset Offset provided by retiring credits No formal content of 7 part test report Case law and non-binding principles Redesign process Redesign process Redesign process No obligation to provide an offset

Assessment of impact Biobanking Negotiated offset Who Accreditation consultant Anyone Objective Quantitative: establishment and evaluation of credits Preliminary qualitative assessment of significance Assessment methodology Biobanking Assessment Methodology Detailed site assessment protocols for vegetation mapping, vegetation condition and species surveys 7 factors, Threatened species assessment guidelines. No specific method Scale Local, Landscape Regional, state and national Local

Assessment of offset BioBanking Negotiated offsets Methodology // assessment of impacts No specific requirements Offsets principle Equivalency requirement Strict trading rule Like for like or trading up Location requirement No geographic proximity By CMA sub-regions Timing requirement Credits retirement time specified in Biobanking statement Usually before commencement of the work Amount ratios requirement Set formula in Biobanking Assessment Methodology Between 3:1 and 8:1 Principle: like for like or better outcome BUT not always the case same Local Council Area Arrangement should be made before commencement of work No set formula Negotiated Ratio

) Offset Implementation Biobanking Legal Instrument Buying credits Entering into a Biobanking agreement Negotiated offset Dedication of land Conservation Agreement Covenants Planning Agreement Permanence Duration in perpetuity OEH Principle 7: enduring Management Management Plan Standard management actions OEH Principle 7: enduring Long Term Financing Biobanking Trust Fund OEH Principle 7: enduring Reporting and selfmonitoring Annual report on management actions /

Conclusion No level playing field This Situation act as a disincentive for developer to enter the Biobanking route and truly take into account natural values in their projects. Next step?

Thank You