Biodiversity offsetting

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Biodiversity offsetting is a system used predominantly by planning authorities and developers to prevent biodiversity loss and, in some circumstances, create biodiversity gain through the planning process. Individuals or companies involved in arranging biodiversity offsets will use qualitative and quantitative measures to determine the amount, type and quality of habitat that is likely to be affected by a proposed project and calculate the financial compensation that would be required to re-create the same amount, type and quality of habitat at new locations, often called receptor sites. The type of environmental compensation provided by biodiversity offsetting is different from similar systems in that it must show both measurable and long-term biodiversity improvements.

Receptor sites

Receptor sites are areas of land put forward by companies or individuals looking to receive payment in return for creating (or restoring) biodiversity habitats on their property. The biodiversity restoration projects are financed by compensation from developers looking to offset their biodiversity impact. The resulting biodiversity levels at the new receptor sites should be equal to, or greater than, those at the original ‘impact site’; in order to achieve no net loss – and preferably gain – of overall biodiversity. The system often relies on the buying (by developers) and selling (by landowners) of conservation credits.

Environmental legislation

In the UK, compensation (for environmental harm caused by development) in the form of biodiversity offsetting is currently an optional (non-compulsory) tool for developers. Those developers choosing to incorporate biodiversity offsetting practices into their project plans can do so once the normal planning mitigation hierarchy^[1] has been followed, which involves taking steps to avoid and reduce environmental harm, where possible, at the development, or 'impact', site.

Biodiversity offsetting is only applicable to land that has been approved for development, which means it does not apply to protected sites such as Sites of Special Scientific Interest (SSSIs) or National Nature Reserves (NNRs). In addition to protected areas, vulnerable or irreplaceable habitats (such as ancient woodland) are also exempt from biodiversity offsetting. In 2011, six biodiversity offsetting pilot schemes were started in England by the British Government to test the process. They are run in partnership with local groups and private companies and are located in Warwickshire,^[2] Essex^[3] and the Ribble Valley.^[4] In September 2013, the British Government published a Green Paper^[5] containing plans for further incorporation of biodiversity offsetting in the UK planning system. (Pubic consultation period: 5 September – 7 November 2013).

Economics

Biodiversity is increasingly seen as having economic value^[6] due to growing recognition of the world’s finite natural resources and through the benefits of ecosystem services (nature providing clean air, food and water, natural flood defences, pollination services and recreation opportunity). Placing financial value on biodiversity has created a marketplace for retaining and restoring habitats.

Financial gain from biodiversity offsetting is brought about through the sale of conservation credits by landowners. Individuals or companies who are looking to receive financial payment in return for creating or enhancing particular wildlife habitats on their property can have their land valued in conservation credits by a biodiversity offsetting broker^[7] who will then register their credits for sale^[8] to developers looking to offset any residual impact to biodiversity from their approved developments.

Developers can also find the business of biodiversity offsetting appealing financially as the compensation payment for their project’s residual biodiversity impact is handled in one agreement and the landowner receiving that payment (and therefore the habitat re-creation duties) is responsible for the biodiversity restoration and management thereafter. The cost may represent a small proportion of a developer’s budget and is often outweighed by a project’s long-term gains. As corporate social responsibility is often part of larger companies’ business priorities, being able to demonstrate environmentally responsible practices can be an additional incentive.

Conservation credits

The cost of re-creating an area of habitat affected by a development proposal (impact site) can be calculated and represented as a number of conservation credits that a developer could purchase in order to offset their biodiversity impact. Land put forward for investment to re-create impacted biodiversity (receptor site) is also calculated in conservation credits (to account for the cost of creating or restoring biodiversity at that particular site and to cover the cost of its' long-term conservation management). This situation enables the buying (by developers) and selling (by landowners) of conservation credits. Government approved (quantitative and qualitative) metrics should be used to calculate the number of conservation credits that can be applied to each site, in order to maintain accuracy and consistency in the value of a conservation credit.

History

A decline in global biodiversity^[9] due, in part, to land use changes^[10] is the motivation for creating a system within the planning process that tackles unavoidable and residual impact to biodiversity. Formal evaluation of impact to habitat, wildlife and other natural considerations is often required of developers ahead of receiving approval for a project to go ahead. This can often be in the form of Environmental Impact Assessments (EIA), which are commonplace within the work of Government planning authorities. EIAs look at how proposed projects may impact upon the environment in its broadest sense, covering the traditional ‘green’ aspects alongside any social and economic issues; and can result in mitigating and compensatory packages which form part of a project’s overall proposal for approval. The topic of biodiversity is likely to be looked at as part of an EIA, but in conjunction with many other overriding elements. Biodiversity offsetting, as an assessment and compensatory process, sits outside the EIA and aims, specifically, to tackle habitat – and therefore biodiversity – loss.

International

Countries including the US, Australia,^[11] New Zealand,^[12] UK and parts of Europe use biodiversity offsetting as an optional or mandatory (depending on the country) biodiversity conservation management tool within their planning systems. Biodiversity offsetting is also being considered by Latin American countries^[13] (Brazil, Colombia, Perú, Ecuador and Chile) and by South Africa.

References

External links

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