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.

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.