About the Biodiversity Credits Supply Fund and Taskforce

Biodiversity credits will be easier to secure and more efficiently priced through a $106.7 million investment in the NSW Budget to establish a strategic new fund.

The Biodiversity Credits Supply Fund (the Fund) will:

buy credits upfront at competitive market prices based on forecast demand from major projects and infrastructure development
sell credits at purchase price plus a small mark up (cost recovery) to public or private proponents who need to offset biodiversity impacts
re-invest proceeds to buy more credits (as a revolving fund), enabling the initial investment to be used to buy and sell $200 million credits over three years.

The Fund also helps improve conservation outcomes with government able to direct efforts to more strategic sites.

The Fund will be established within the Department of Planning and Environment using existing provisions in the Biodiversity Conservation Act 2016. The Fund is expected to be operating later in 2022.

Why is the Fund needed?

New South Wales has a $110 billion infrastructure pipeline and renewed investment in housing and manufacturing.

As a result, demand for certain credit types is increasing faster than the supply, which can cause delays and increased costs for projects.

The NSW Government is establishing the Fund to increase the supply of these credits and enhance confidence in the biodiversity credit market.

The Fund will deliver a significant increase in the supply of credits required for critical projects such as renewable energy zones, regional infrastructure initiatives and the expansion of housing and manufacturing.

This will reduce unnecessary project delays and costs, without compromising environmental outcomes, resulting in greater economic benefits.

What will the Taskforce do?

The Credits Supply Taskforce will:

Fast-track supply of biodiversity credits by proactively supporting landholders to enter into biodiversity stewardship agreements that generate priority credits (credits most likely to be in demand) – responsibility for BSAs is moving to Taskforce
Operate the Biodiversity Credits Supply Fund – acquire priority biodiversity credits and on-sell them to proponents to support the delivery of infrastructure and other projects as those projects are approved, and seek to:
- lower the cost of biodiversity credits compared to current forecasts, increase certainty and reduce delays for proponents
- reduce the need for proponents to pay into in the Biodiversity Conservation Fund as a way to meet offset obligations
- improve liquidity and confidence in biodiversity market and the Biodiversity Offsets Scheme.

Enhance conservation benefits by contributing to regional and landscape-scale conservation objectives, integrating private and public land measures and contribute to a cohesive biodiversity strategy for the State
Help co-ordinate the assessment of land for additions to the national park estate with efforts in increase number of stewardship agreements.

Who is in the Taskforce?

The Taskforce will include staff with functions that closely relate to the objectives and activities of the taskforce, drawn from:

Biodiversity, Conservation and Science
National Parks and Wildlife Service, and
Biodiversity Conservation Trust.

The cross-agency representation will also help ensure the Fund operates as part of an integrated approach.

Credits Supply Taskforce - frequently asked questions expand

When will the Taskforce start processing BSAs?

From around August 2022 for new applications.

Will current BSA applications that have been made to the BCT be transitioned to the Taskforce?

Yes, although any applications able to finalised by the BCT in July will be finalised by the BCT. Any remaining after 1 August 2022 will be moved to the Taskforce.

What will the Taskforce do differently?

The Taskforce is expected to establish an increase in the number of BSAs with landholders to address demand for biodiversity credits. It is also expecting to process BSAs more quickly and take an active role in addressing barriers to entry. More information will be published in July/August 2022 on the support available to landholders to enter into a BSA. This is likely to be targeted to in- demand credits.

If I made a BSA application to the BCT but it hasn’t yet been approved, will I be able to access the same support as a new applicant?

The Taskforce will seek to accommodate this. Any requests should be raised with the Taskforce.

After my BSA is approved, do I still deal with the Taskforce?

The Taskforce will handover the BSA to the BCT once it is approved, and the BCT will have an ongoing relationship with the landholder in relation to implementation of the BSA and management payments from the BSPF.

Who do I apply to for BSA variations?

The Taskforce will cover BSA variations as well as applications for new BSAs.

Can I establish carbon credits as well as biodiversity credits on a BSA site?

More information on this issue is being obtained and will be published.

Apart from BSAs, will the Taskforce be able to tell me about other opportunities?

Yes, Taskforce staff will be able to provide information on other options and follow up contacts.

How will the Taskforce handle interactions between its various roles?

The Taskforce has teams with clearly defined roles and any issues will be identified and dealt with under its operating protocols. Advice from probity advisors will be sought as issues are identified. The Taskforce will operate with high degrees of probity, transparency and accountability.

Credit Demand Expression of Interest

Private and public proponents can submit an Expression of Interest to the Taskforce to seek support in sourcing biodiversity credits that may be needed to offset their development. If you are interested in getting help to do this, please fill out the short Expression of Interest form.

Expression of Interest form

Stewardship Expression of Interest

Are you interested in managing your land in ways that benefit native plants and animals? Entering into a biodiversity stewardship agreement generates biodiversity credits you can sell through the NSW biodiversity market and fund the management of weeds, pests and fire and ecological restoration.

Do you have land that might be suitable? We are making it easier and faster for landowners to set up a biodiversity stewardship agreement. If you are interested in getting help to do this, please fill out the short Expression of Interest form.

Expression of Interest form

Page last updated 23 May 2023

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About the Biodiversity Offsets Scheme

About the Biodiversity Credits Supply Fund and Taskforce

Why is the Fund needed?

What will the Taskforce do?

Who is in the Taskforce?

Credits Supply Taskforce - frequently asked questions expand

Credit Demand Expression of Interest

Stewardship Expression of Interest

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Credits Supply Taskforce - Stewardship enquiries

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Credits Supply Taskforce - Supply Fund enquiries

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Biodiversity Credits Supply Taskforce six-month progress report

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Probity and transparency arrangements

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