1. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Marianne Darbi, IÖR Dresden 29 July 2010 Biodiversity Offsets in German Impact Mitigation Regulation

2. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Outline 1.Biodiversity Offsets: What? Why? Who? 2.Characteristics of Biodiversity Offsets and implementation 3.German Impact Mitigation Regulation 4.Loss-gain calculations in German Impact Mitigation Regulation

3. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 1. Biodiversity Offsets: What? Why? Who?

4. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 What? “Biodiversity Offsets are conservation activities intended to compensate for the residual, unavoidable harm to biodiversity caused by development projects” ten Kate et al. 2004 “Biodiversity offsets seek to ensure that unavoidable adverse environmental impacts of development are counterbalanced by environmental gains” Escorcio Bezerra 2006

5. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Mitigation Hierarchy 8/27 Follow subsequent steps: Step 1: avoid or prevent negative impacts on biodiversity Step 2: address unavoidable impacts through minimization and rehabilitation measures Step 3: establish compensation measures („Biodiversity Offsets“) as a last resort for residual adverse impacts: restitution or compensation payment

6. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 What? Why? Polluter Pays Principle Environmental legislation and liability Business Initiatives and Corporate Social Reponsibility

7. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 What? Why? Who? Governments Business NGOs

8. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 2. Characteristics of Biodiversity Offsets and implementation

9. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Functional relation to the impact Spatial relation to the impact Timing Responsibility Compensation measures: What are Biodiversity Offsets used for? Characteristics of Biodiversity Offsets

10. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Strong loosened functional relation spatial relation In kindOut of kind On siteOff site Case-by-case Aggregated Offsets (Pool and Banking Models) Functional and spatial relation to the impact

11. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Timing Full Compensation Restoration Residual Impact Impact Problem of time lag Offset implemented after impactOffset implemented before impact

12. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Responsibility Developer implements offsets Third party implements offsets Measures on the ground Compensation payments and Biodiversity credits

13. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Compensation measures: What are Biodiversity Offsets used for? Conservation / Preservation Restoration / Enhancement Risk that Biodiversity Offsets replace conservation obligations of governmental bodies (Nature Conservation Authorities etc.)

14. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 3. German Impact Mitigation Regulation

15. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 German Impact Mitigation Regu- lation after Nature Conservation Act Brazilian Project Developers Offsets after Protected Areas Law Diskussion about (Voluntary) Biodiversity Offsets US Wetland Mitigation after Clean Water Act Australian Green Offsets in New South Wales after Native Vegetation Act CBD Art. 14: Impact Assessment and Minimizing Adverse Impacts 1976 1985 1992 1997 2000 ca. 2004 Milestones in Environmental and Biodiversity Offsetting

16. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 German Impact Mitigation Regulation Impact Mitigation Regulation (“Eingriffsregelung”) is the major landscape conservation instrument to address mitigation and compensation for impacts from developments and projects in Germany: entered into force as part of the Federal Nature Conservation Act 1976 comprehensive approach (for all impacts, on all scales, not restricted to specific areas )

17. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 German Impact Mitigation Regulation 2002 and 2009 amendments to the Federal Nature Conservation Act: loosening of spatial and functional connection between impact and compensation compensation pools: provision and bundling of compensation sites and measures

18. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Compensation agencies (‘Flächenagenturen’) “Compensation agencies are new service providers in the field of nature conservation, which establish compensation pools and procure sites and measures for developers“ (BFAD e. V. 2008). Compensation agencies are experts on compensation pools – including planning, implementation and long-term management. They provide services and support to investors, authorities and all local partners“ (BFAD e. V. 2008). Pool and banking models 4/18 Compensation pools: aggregation of compensation sites Eco-accounts: aggregation of compensation sites and advanced implementation of compensation measures Compensation agencies: provision of compensation sites or measures to a third party

19. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Core parameters of Pool and Banking Models blablaWhat are the core parameters that influence the functioning and financing of compensation agencies in Germany? 1. form of organisation / legal form number of employees focus solely on compensation vs. compensation as one of a multitude of fields of action more nature conservation orientation vs. more economic orientation 2. area of influence and clients 3. availability and safeguarding of compensation sites 4. financing and cost recovery

20. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Advantages and potentials of Pool and Banking Models steered development / inclusion into an overall concept is beneficial both economically and ecologically (simpler and speed up lincensing procedure, creation of ecological networks, measures are implemented where it is most useful from a nature conservation point of view) can lead to a reduction of land consumption bundling increases the efficiency of the implementation and maintenance of measures recovery of complex ecosystems and possibility to implement also cost- intensive measures diminution of time lag effects bundling of capacity and technical know-how broad participation and acceptance (reduction of land use conflicts etc.)

21. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 4. Loss-gain calculations in German Impact Mitigation Regulation

22. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Balancing and Evaluation methods Multitude of methods: Compensation area coefficients Biotope valuation procedures Cost-of-restoration approaches Surrogate: Area equivalent Value-area equivalent Cost equivalent

23. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Discussion points on Biodiversity Offsets and Pool and Banking Models blabla risk that the appropriateness to compensate may not always be considered advance financing How to secure measures in perpetuity? uncertainty (refinancing of sites and measures cannot be guaranteed) need for trained personnel preference for low cost measures price dumping can have a negative effect on the quality of the measures to date: lacking transparency and transferability (valuation techniques to balance impact and compensation and cost calculation differ very much)

24. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Thank you for your attention! Leibniz Institute of ecological and regional developmentMarianne Darbi Weberplatz 1Fon: 0351 463 42356 01217 DresdenFax :0351 4679 212 www.ioer.deE-Mail: M.Darbi@ioer.deM.Darbi@ioer.de

25. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 5. Criticism of Biodiversity Offsets

26. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 License to trash When is an offset appropriate? Distinguish between offsettable and not offsettable impacts Criteria: irreplaceability, vulnerability etc. Need to define thresholds

27. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 How to ensure equivalence between impact and offset? Problem to measure and value biodiversity Different „currencies“ Indirect and cumulative impacts  Multitude of existing evaluation and balancing methods Comparing apples and oranges

28. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 How long lasts perpetuity? Duration of impacts vs. Duration of offsets Short and long-term impacts Temporary and permanent impacts Criteria: reversitbility, feasibility etc. In practice different timeframes are applied  Biodiversity Offsets should last as long as the impairment persists  need for Follow Up

29. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Shift of responsibility What are the physical and financial compensation means used for? Negative use: MERE use for the management and maintenance of existing protected areas  Biodiversity Offsets should not replace Conservation and other obligations of governmental bodies (Nature Conservation Authorities etc.)

30. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 6. Potentials of Biodiversity Offsets

31. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Trading up Preference for „in kind“ offsetting However sometimes not feasible or not effective  Trading up: substituting a less valuable asset by an asset that is more valuable in terms of either its quality or quantity

32. Biodiversity Offsets in German Impact Mitigation Regulation; IÖR Dresden, Marianne Darbi, 29 July 2010 Landscape Level Planning and Green Networks Small sites can require a disproportionate effort of management and sometimes not prove to be efffective Landscape and habitat pattern  Advantages of Aggregated Offsets and Banking: Compensation Pools and Mitigation Banks are effective instruments to implement Biodiversity Offsets with a minimum of land consumption, bureaucracy and costs and a maximum of nature conservation value