Delivering biodiversity offsetting through an independent broker Tom Tew Chief Executive
How can brokers enable offsetting? Accurate, consistent and independent calculation Supply that meets demand Assurance of long-term delivery
Voluntary offsetting Will only work if it brings benefits to all three stakeholders: Planning Authorities Developers Receptor site landowners (farmers, NGOs etc) And, in so doing, delivers conservation gain
Benefits for planning authorities Transparent, consistent and auditable demonstration of no net loss sustainable decisions Removes compliance monitoring needs but retains decision making locus and enforcement capability Removes obligations but increases accountability But only if there is assurance on quality of both process and delivery
Benefits for developers Reduces planning delays and consultancy costs - greater clarity, predictability and consistency Long-term liability for management discharged Transparent delivery of sustainable development But only if they can buy their credits efficiently i.e. developers need certainty & speed
Benefits for landowners Pays for long-term conservation management of land at a price they set Guaranteed long-term payments No administrative complications But only if they can sell their credits i.e. landowners need an effective way of selling their credits
Benefits for conservation Environmental value accounted for in all planning decisions Financial disincentives to habitat destruction Drives up on-site mitigation standards Mainstreams land management value Enables long-term and large-scale habitat conservation
What s needed to make it work? Policy framework Consistent process metrics applied consistently (without conflicts of interest) Effective market demand and supply i.e. right receptor site (right habitat type, right size, right place, right time, right price) Long-term delivery
Case study example - development Biodiversity value of existing 12.96ha site = 48.68 units Biodiversity value of the proposed development = 16.78 units Biodiversity Offset units = -31.90 units Large areas of low value habitats, but significant impact due to small areas of mitigation to allow development to meet housing need.
Case study example - development Biodiversity value of existing 5.10ha site = 41.04 units Biodiversity value of proposed development = 34.89 units Biodiversity Offset units = -6.15 units Scheme amended to retain and enhance best existing habitats to reduce biodiversity loss.
Case study example - provider Existing Units Existing biodiversity value of 4.1ha Species Poor Grassland = 8.2 units (4.1ha) Existing biodiversity value of 10.4ha Poor Semi-improved Grassland = 41.6 units Potential Credits To enhance the Species Poor Grassland to Semi-improved Grassland in 10 years would generate 5.86 credits gain. To enhance the species-poor Semi-improved Grassland to species-rich Semi-improved Grassland in 10 years would generate 9.90 credits gain The Total Grassland units available on the site = 15.76 credits
Land supply - receptor sites Habitat creation or restoration Credit calculations reflect the difference between the baseline and target habitat condition Multipliers applied Delivery risk Years to target condition Spatial risk Like-for-like and trading up Land managers set price of credits
Long term delivery
How do brokers enable biodiversity Only brokers provide: offsetting? Consistent and independent calculation Supply that meets demand Assurance of long-term delivery
How do brokers enable biodiversity offsetting? Intermediaries in environmental offset markets. Actions and incentives. Coggan et al. (2013) Land Use Policy Transaction costs to buyers and sellers in offset markets asset specificity, uncertainty and transaction frequency are driven downwards by independent intermediaries. Private intermediaries operating in the offset market did not increase probity risk.
Nothing will ever be attempted if all possible objections must first be overcome Dr Johnson 1759