Biodiversity credits will be easier to secure and more efficiently priced thanks to a $106.7 million investment through the NSW Budget to establish a strategic new fund.
The new Biodiversity Credits Supply Fund will support economic activity and stimulate the market for NSW biodiversity offset credits.
The biodiversity offsets scheme ensures that development in NSW is environmentally sustainable. The Scheme requires a development that impacts upon threatened ecosystems or species to conserve habitat elsewhere in New South Wales through the buying and selling of ‘biodiversity credits’.
Treasurer Matt Kean said the new fund will help public and private proponents to secure biodiversity offset credits through an efficient and trusted government fund.
“This is an important step change to ensure we continue to protect our precious and unique plants, wildlife and ecosystems,” Mr Kean said.
“This $106.7 million investment over 3 years by the NSW Government will enable more than $200 million of biodiversity credits to be bought and resold.”
Minister for Environment James Griffin said the innovative fund will help to mature the biodiversity credit market, making the entire system more efficient.
“The fund will ensure there’s a strong pipeline of biodiversity offset credits ready to roll out when needed, and link those credits with the proponents that need them,” Mr Griffin said.
“Ultimately, landholders will benefit by getting paid for generating biodiversity offset credits if they wish to participate, all the while, protecting and conserving biodiversity across New South Wales.”
Credits generated will be purchased by the fund and then sold to proponents. This strategic approach to credit procurement should reduce the cost of biodiversity offset credits over time by increasing supply in the market.
“The Biodiversity Credits Supply Fund is great progress for industry and for the environment, and will strengthen economic activity while striking the right balance for conservation,” Mr Kean said.
“This will reduce time and cost on both sides, as landholders will have an immediate buyer for their credits, and credits will be available to proponents when they need them.”
The Biodiversity Credits Supply Fund will support landholders with transparent information to help identify if they have land suitable for credit generation, and to better understand their credit trading options.
In addition, the NSW Government will soon release new tools to help landholders, proponents and other scheme participants estimate the fair price of credits in the open market.
