1. Can Offsets Deliver a Conservation Gain for Koalas in Queensland? Malcolm Eadie Director of Netgain Environments

2. Overview What is an Offset? Legislation and policy governing the use of Offsets in Queensland How is a requirement to Offset residual impacts determined? How can an Offset be delivered? Advanced Offsets What improvements are needed? What can the public do to ensure Offsets are effective? Can Offsets achieve a conservation gain for Koalas?

3. What is an Offset? The term ‘environmental offsets’ refers to measures that compensate for the residual adverse impacts of an action on the environment. Offsets provide environmental benefits to counterbalance the impacts that remain after avoidance and mitigation measures. These remaining, unavoidable impacts are termed ‘residual impacts’. Offsets can help to achieve long-term environmental outcomes for protected matters of environmental significance, while providing flexibility for proponents seeking to undertake an action that will have residual impacts on those protected matters. Offsets do not mean proposals with unacceptable impacts will be approved.

4. Legislation and policy governing the use of Offsets in Queensland Commonwealth: Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act) EPBC Act Environmental Offsets Policy 2012 Queensland: Qld Environmental Offsets Act 2014 (EO Act) Qld Environmental Offsets Policy V1.1 2014 Environmental Offsets (Transitional) Regulation 2014 Queensland Environmental Offsets Regulation 2014 Sustainable Planning Act 2009 (SP Act) Qld State Planning Policy 2014 SEQ Koala Conservation State Regulatory Provisions 2010 State Government Supported Community Infrastructure Koala Conservation Policy 2012 (updated 2014) - non-statutory

5. How is a requirement to Offset residual impacts determined? The scale of ‘residual impact’ influences if Commonwealth or Queensland laws take precedent. Large scale ‘residual impacts’ (typically >5ha and mostly >20ha) associated with major greenfield urban development and linear infrastructure development typically have Offsets requirements conditioned and assessed under Commonwealth Laws and Policy. Small scale ‘residual impacts’ (typically >0.05Ha and mostly <5ha) associated with urban infill and peri-urban type development typically will have Offsets requirements conditioned and assessed under Queensland Laws and Policy. There are significant differences in how Commonwealth and Queensland Laws assess the appropriateness of an Offsets proposal.

6. How is a requirement to Offset residual impacts determined? Commonwealth Laws apply the principle of ‘ecological equivalence’ to assess the adequacy of an offsets proposal. To achieve ‘ecological equivalence’, Commonwealth Laws allow for the management and legally securing of un-protected regrowth koala habitat to achieve a conservation gain on the Offset Site. Additionally, ‘averted loss’ can also be credited as a conservation gain on an Offset site. Queensland Laws apply the principle of ‘habitat net gain’ to assess the adequacy of an offsets proposal. To achieve koala ‘habitat net gain’, Queensland Laws require three juvenile koala habitat trees (KHTs) be planted and managed to maturity for each non-juvenile KHT impacted. The new KHTs must be planted on to land mapped by the State as being suitable to contain koala habitat and to generate a conservation gain for the species. The planted area must be legally secured in perpetuity.

7. How is a requirement to Offset residual impacts determined? Under Queensland Laws, Offsets for ‘residual impacts’ on Koala habitat in SEQ can only be required for code- or impact-assessable development as determined by the SEQ Koala Conservation State Regulatory Provisions 2010 (SEQKCSPRP) and associated mapping (Koala SPRP Maps). The SEQKCSPRP and associated mapping imposes limits on the land areas in SEQ for which an Offset for ‘residual impacts’ on koala habitat can be required. There is concern from many Local Governments in SEQ that the Koala SPRP Maps do not accurately reflect where koalas are known to exist and therefore the SEQKCSPRP is not adequately protecting SEQ koala populations.

9. How is a requirement to Offset residual impacts determined? Queensland State Government public sector entities delivering community infrastructure such as arterial roads and rail network projects operate under the State Government Supported Community Infrastructure Koala Conservation Policy (CI Policy). The CI Policy: Is a non-statutory guideline; Requires self-assessment against performance criteria set out in the policy; Establishes obligations to act in accordance with the relevant environmental offset legislation; and Provides criteria to ensure offsets are directed onto land that is suitable to contain koala habitat and that will achieve a conservation net gain.

10. How can an Offset be delivered? Under Commonwealth Laws, an Offset for residual impacts on koala habitat must be a direct land based offset with not more than 10% of the offset obligation able to be met via an in-direct (supplementary) action such as contributing financially to koala conservation research. Under Queensland Laws, an Offset for residual impacts on koala habitat can be discharged via a financial settlement offset (a payment to the responsible LGA or to the State), a direct land based offset and an in-direct offset (not more than 10%). Financial Settlement Offsets transfer the obligation to deliver a land based offset to the responsible LGA or to the State, whichever is the case. An approved (by DEHP) Offset Delivery Plan is required for all Offsets delivered under Queensland Laws.

11. Advanced Offsets Advanced offsets are a supply of offsets for future use, transfer or sale by proponents or offset providers. Unlike conventional offsets, which are generally put in place to compensate for the residual impacts of an action following approval, advanced offsets are implemented prior to any impact occurring. Advanced offsets are encouraged where practical, given that they provide a means to better manage the risks associated with the time delay in realising the conservation gain for a protected matter.

12. The benefits of Advanced Offsets Gordon, A., et al., Assessing the impacts of biodiversity offset policies, Environmental Modelling & Software(2011),oi:10.1016/ j.envsoft.2011.07.021

13. What Improvements are needed? Consistency between Commonwealth and Queensland Laws A bilateral agreement can facilitate this – suggest the Queensland ‘habitat net gain’ principle be adopted by the Commonwealth but NOT the SEQ Koala SPRP mapping. Greater transparency and accountability for discharged offsets (DEHP) Greater level of auditing of delivered offsets (DEHP). Better policy settings to incentivise market delivery of advanced offsets Commonwealth have released a Draft Policy Statement: Advanced Environmental Offsets under the EPBC Act for public comment. Queensland EO Act and EO Policy promote advanced offsets but provide no incentive for the market to bring forward investment to generate Advanced Offsets. Development of an environmental offsets market in Queensland (similar to BioBanking in NSW) to increase market transparency and accountability and to attract private investment in Advanced Offsets

14. What can the public do to ensure Offsets are effective? Support State and Local Government agencies with the collation of data and evidence on koala populations and key habitats to support future amendments to statutory koala mapping and policy settings. Through public discourse maintain the broad community interest and concern for the protection and recovery of Australia’s threatened native fauna and flora. Maintain visibility on development occurring in your local area and ensure developments requiring offsets for ‘residual impacts’ on koala habitat demonstrate their offsets will deliver a ‘habitat net gain’ and a ‘conservation net gain’ for koalas.

15. Can Offsets achieve a conservation gain for Koalas in Queensland? Yes, but not on their own and provided: More of the actual ‘residual impact’ is captured under the relevant Commonwealth and Queensland Laws – solution: fix the mapping and reduce the assessable development trigger thresholds; The time lag between impact and offset benefit is reversed – solution: incentivise market delivery of Advance Offsets by creating an environmental offsets market and providing incentives in the policy settings; The offsets are delivered onto land that is strategically located and appropriately scaled to deliver a conservation gain for the species.

16. Thank You