How does an Expression of Interest differ from using the Demand Register?
Through Credit Demand Expression of Interests, the Taskforce can take a more proactive approach to engaging landholders to generate those credits that are in demand. Proponents can still use the public Demand Register to advise the market directly of their interest in buying credits.
How will information provided in an Expression of Interest be used?
The Taskforce will use Expression of Interest information to support efforts to meet the demand for biodiversity credits by increasing supply. Project-specific information will not be provided outside of the Taskforce. Generalised information about the demand for biodiversity credits will be released publicly and to landholders so that the market and potential participants better understand opportunities to generate credits.
If I submit an Expression of Interest, do I have to buy the credits?
There is no obligation to buy credits indicated in an Expression of Interest. The Expression of Interest can be made before offset requirements are finalised in a development consent. Expression of Interests assist the Taskforce in supporting the creation of credits that may be needed. The Supply Fund may also purchase these types of credits for resale.
Is buying credits from the Supply Fund different from the Biodiversity Conservation Fund?
Yes, biodiversity credits available from the Supply Fund will be cheaper than paying into the Biodiversity Conservation Fund as the government is purchasing credits in advance (reducing the risk that credits cannot be found), and because the Taskforce will work with a wide range of potential suppliers to source credits. Proponents buying credits from the Supply Fund will need to retire credits to meet a credit obligation (similar to purchasing credits from the market). Another benefit of the Supply Fund is that the activities to increase biodiversity value will start earlier.
How can I get priority to buy credits available through the Supply Fund?
Credits purchased by the Supply Fund will be sold to proponents on a first-in basis. Where proponents would like more certainty to buy credits at a time that suits them, the Taskforce may offer a Credit Purchase Agreement. This type of agreement would provide priority for credits and cover contingencies, including if the Supply Fund cannot find credits or if the proponent decides to source credits elsewhere (including by paying in the Biodiversity Conservation Fund).
How much will credits cost if I purchase them through the Supply Fund?
Credits will be sold at purchase price plus cost recovery. Purchase price will include value for money and market considerations. More information will be published in a pricing strategy being developed.
How long will it take to find credits that I need using the Supply Fund?
Preferred timeframes for purchasing credits can be specified in the Expression of Interest; however, this is not guaranteed. Greater certainty can be achieved through a Credit Purchase Agreement.
What if the Taskforce and Supply Fund can't find the credits I need?
If the credits are not available through the Supply Fund, proponents can use other existing options for offsetting, including buying from the open market, establishing a new biodiversity stewardship agreement or paying into the Biodiversity Conservation Fund.
Can I specify the location from which credits are from?
The Taskforce will consider factors such as demand, cost and fit with strategic conservation outcomes when sourcing credits and will look for opportunities to meet specific requests where it is practical to do so.
Will the credits be on a like-for-like basis, or will variation rules be used?
The Taskforce will use the like-for-like rules in sourcing credits unless proponents identify that the variation rules are available for a project (as set out in conditions of development consent).