Changes to the Biodiversity Offsets Payment Calculator
The Biodiversity Offsets Payment Calculator was upgraded on 31 October 2019. The new calculator came into effect on 1 November 2019. This change coincided with the launch of the Spot Price Index.
The purpose of the Biodiversity Offsets Payment Calculator (BOPC) is to provide a charge that predicts the costs that the Biodiversity Conservation Trust will incur in securing each type of biodiversity credit as an offset.
The BOPC is used to formally generate a charge and facilitate payment into the Biodiversity Conservation Fund and is kept within the Biodiversity Offsets and Agreement Management System (BOAMS) where it is linked to the assessment data for a development proposal assessed using the Biodiversity Assessment Method (BAM).
However, a public tool is also separately available for anyone to test the cost associated with paying into the Biodiversity Conservation Fund (BCF). You can access the public tool to test how the BOPC works and to obtain an estimate for a credit obligation.
It is important to note that this tool cannot be relied upon to determine the final payment obligation – this must be done through the BOPC within the BOAMS.
The BOPC is updated quarterly. To find out about updates, visit the BOPC updates webpage.
For more information, see the Biodiversity Offsets Payment Calculator and the Biodiversity Offsets Payment Calculator public tool: User guide.
Find out about changes to the Biodiversity Offsets Payment Calculator
To continue the transition to the NSW Biodiversity Offsets Scheme, and to address market concerns regarding the charge to pay into the BCF to discharge biodiversity credit obligations, the following changes have been made to the BOPC:
- Adjustment to the discount rate used to estimate the total fund deposit (TFD). The TFD is the amount required for in perpetuity management of biodiversity stewardship sites. In November 2018, the discount rate was adjusted from 3.5% to 2.6% to better ensure the long term financial and environmental sustainability of biodiversity stewardship sites.
- Upgrade of methodology from BioBanking/Framework for Biodiversity Assessment (BBAM) to the BAM.
- Introduction of offset trading groups as part of the like-for-like offset rules. Ecosystem credits for Plant Community Types within the same offset trading group are considered interchangeable.
- An increase in the administration cost of paying into the Biodiversity Conservation Fund.
The Methodology Note – Biodiversity Offsets Payment Calculator – BTD (BAM credits, offset trading groups and discount rate) provides a full description of the upgrade methodology.
Making it easier to access market data – Launch of the Spot Price Index-Biobanking credits
The Spot Price Index is an innovative new product which provides the public with easy access to the latest credit prices and historical biodiversity market data, published in the BioBanking Public Registers. The index being launched is for Biobanking credits which are still being traded. A Spot Price Index for biodiversity credits created under the new scheme (biodiversity assessment method, or BAM, credits) will be launched when those credits start trading and being registered in the Biodiversity Offsets Scheme Public Registers.
The Spot Price Index can be easily interrogated to provide a wide range of market information that will be valuable to biodiversity offsets scheme participants, particularly those who are purchasing or pricing credits and who need to understand the current price of credits.