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November 17, 2023
Healthy biodiversity is essential for the future of our planet and fundamental for the future quality of life of all Australian living things. Its importance was highlighted in 2015, in the “2030 Agenda for Sustainable Development”, which was adopted by all United Nations member states. Goal 15 of the 17 Sustainable Development Goals is devoted to “protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss”.
The Australian mining and gas industries undertake projects likely to require biodiversity offsets. Biodiversity offset requirements are not just limited to mining and gas; however, other industries and projects are also impacted. In New South Wales other examples include the Western Sydney Airport, some master-planned residential communities, and other state-significant infrastructure projects. Biodiversity offsetting will depend on the nature, scale, and location of the development where vegetation clearing is necessary.
Atlantech Environmental Lead Jason Desmond said it is important for Australian industries to understand the rationale behind biodiversity offsets and the environmental objectives governments are trying to achieve.
Below are some of the questions you might ask, when planning a mining project in New South Wales, and more information is available via the NSW Government Department of Planning and Environment website.
In Australia, what is meant by biodiversity offsetting?
In simple terms, biodiversity offsetting is a last resort in environmental impact mitigation. Large scale development project should seek to minimise environmental impacts as much as possible. Where impacts can’t be mitigated as much as possible, planners need to compensate for loss through measurable, and long-term conservation actions. These are called biodiversity offsets.
How does offsetting work?
Biodiversity offsetting is based on a theory that biodiversity values gained at an offset site will compensate for biodiversity values lost to development at another place. The aim is to achieve a standard of “no net loss” of biodiversity. An offset site is a location where native vegetation condition and threatened species habitat are protected in perpetuity and can be improved by management actions such as controlling weeds, fencing, bushfire measures, erosion repairs, pest control, installing habitat and/or planting native species.
The role of offsetting is to ensure developments are facilitated in an environmentally sustainable manner and minimise impacts on native ecosystems. Offsetting provides an incentive to protect biodiversity on private land, it can also provide income for landholders who have offset sites and helps to achieve future biodiversity conservation outcomes.
What is the Biodiversity Offsets Scheme?
The Biodiversity Offsets Scheme (BOS) began on August 25, 2017, and was established under the Biodiversity Conservation Act 2016. The NSW Government website states that under the BOS, development applications or clearing approvals must set out how impacts on biodiversity will be avoided and minimised. The remaining residual impacts can be offset by the purchase and/or retirement of biodiversity credits or payment to the Biodiversity Conservation Fund.
Landholders can establish Biodiversity Stewardship Agreements on their land to generate biodiversity credits. These credits can offset the impact of their development or an opportunity to sell credits. Selling the credits provides funding to support long-term management of the biodiversity stewardship site.
Information about the Biodiversity Offsets Scheme threshold test can be found here.
What is the role of the NSW Biodiversity Trust?
The NSW Government webpage states the Biodiversity Conservation Trust's Biodiversity Offsets Program is responsible for securing biodiversity offsets on behalf of development proponents who opt to pay into the Biodiversity Conservation Fund to meet NSW state and Commonwealth offset obligations of their development approval. It further states: “the NSW Biodiversity Conservation Trust acts as a market intermediary. Developers with an offset obligation can make a payment into the Biodiversity Conservation Fund at a price set by the Biodiversity Offsets Payment Calculator. If developers choose to pay into the fund, the obligation to procure the biodiversity credits transfers to the NSW Biodiversity Conservation Trust. This enables developers to proceed with the development while allowing the NSW Biodiversity Conservation Trust to bundle credit obligations and secure strategic offset outcomes.”
Developers can essentially make payment into the Biodiversity Conservation Fund and then the Biodiversity Conservation Trust has sourced strategic offsets which the developer essentially pays for the total management of, as per the offset calculation.
What if agreements were in place prior to 2016, before the new Act came in?
If a development project has already received approval or consent for clearing under the Environmental Planning and Assessment Act 1979 there are arrangements for transitioning to the Biodiversity Conservation Act 2016 and the Biodiversity Offsets Scheme.
More information about transitional arrangements in NSW can be found here.
What are the biodiversity mechanisms?
There are four delivery mechanisms to secure biodiversity offsets which are:
- Biodiversity credit fixed price offers (open and targeted)
- Biodiversity credit tenders
- Revolving fund
- Biodiversity conservation actions.
Financial assistance may be available to establish a Biodiversity Stewardship Agreement. Learn more about the biodiversity mechanisms, and financial assistance here.
In mining, what sort of work are you seeing more of?
Mining companies are preferring land-based offset strategies to satisfy their biodiversity offset credit requirements. At Atlantech, we monitor and inspect to ensure management actions outlined in conservation agreements are being satisfied. This work might include annual site monitoring, general inspections, bushfire inspections and revegetation advice. Our reports include mapping of items such as weeds, erosion, rubbish, fence condition, nest box condition, fire risk and track conditions which assists in managing biodiversity offset areas.
Are there any examples of how biodiversity offsets work?
A good example of biodiversity conservation in action is at Glencore Australia’s Mangoola open cut coal mine in New South Wales, where a range of actions underway. One of these was the relocation of native orchids and other endangered plant species from pre-mined land. The species were transferred to Mangoola’s biodiversity offset areas and, since 2015, in the mine’s rehabilitation areas. Monitoring has shown the species’ transferred have successfully re-established, and the project has increased the industry’s understanding of translocation. More on Glencore’s biodiversity work can be found in this YouTube video.
Other examples include:
- A forestry property near the Hunter is now a 2600-hectare Biodiversity Stewardship site, having generated a range of species and ecosystem credits. The property is a quiet area and home to species including koalas and squirrel gliders. Other parts of the land is continuing to be used for grazing. More on this can found here.
- Below in is an example of some of management actions found with another conservation agreement:
How we can help
At Atlantech, we provide technical excellence and innovative mining and environmental consulting services. Our team of experienced environmental staff are experienced at biodiversity offset inspections, monitoring, and completion of management plan actions. Our team is also able to review compliance status for these agreements. This can be done via a quick health check to determine requirements or ensuring management actions are sufficiently addressed. Please reach out to Atlantech for a confidential discussion about how we can help.
Sources and for further information:
- NSW Government Department of Planning and Environment
- NSW Mining
