Nature conservation

Biodiversity Reform

The Offsets Payment Calculator

Under the Biodiversity Offsets Scheme, a proponent can choose to pay into the Biodiversity Conservation Fund to meet an offset obligation. This is an alternative to retiring credits. By doing this, the responsibility of finding an offset is transferred to the Biodiversity Conservation Trust.

The Offsets Payment Calculator is an interactive tool designed to determine how much a developer must pay into the Fund to satisfy their offset obligation. The primary aim of the calculator is to provide a price that accurately predicts the costs that the BCT will incur in securing each type of biodiversity credit as an offset.

The Offsets Payment Calculator comprises three modules:

a)       Biodiversity credit price module – this is the predicted market price for biodiversity credits. An econometric model (dynamic panel data model) is used to estimate a pricing curve based on observed biodiversity trades (taken from BioBanking agreements).

b)      Biodiversity credit price risk premium module – this is a margin that accounts for the statistical probability the market credit price paid by the BCT to landholders is higher or lower than predicted in a) above.

c)       Fund administration costs module – this is the cost of operating and administering the BCT for offsetting purposes. 

See the Offsets Payment Calculator User Manual v1.1 (PDF 1.7MB) for more information. A technical note on ‘Pricing models for the Biodiversity Offsets Payment Calculator’ that describes in detail the pricing models for species and ecosystem credits will also be available soon.

The Offsets Payment Calculator that will formally generate the credit price and facilitate payment into the Biodiversity Conservation Fund is located within the Biodiversity Offsets and Agreement Management System (BOAMS). 

A public tool is also available for any person to test the cost associated with each credit type. It is important to note that this tool cannot be relied upon to determine the final payment obligation – this must be obtained through the calculator embedded in the BOAMS.                                                                                                                              

Access the public tool to test how the Offsets Payment Calculator works and to obtain an estimate for a credit obligation. 

Page last updated: 27 August 2019