Trading Biodiversity: Offsetting, Banking and Market-Based Approaches to Impact Mitigation

Abstract

New developments are causing the loss of valuable biodiversity as a result of inadequate mitigation frameworks and a lack of institutional capacity to ensure mitigation attempts are adequately implemented and maintained. A complex mix of social, political, economic and environmental issue converge in this space where development pressures confront pressures for biodiversity conservation. Biodiversity offsetting is an emerging mitigation tool hailed as a solution to this complex issue. However, this research suggests that there is a considerable risk that biodiversity offsetting will become „just another tool in the mitigation tool box‟ if the wider systemic issues inherent in current mitigation frameworks are not addressed. It is proposed that biodiversity banking, as a market based approach to mitigation extends the offerings of biodiversity offsetting to better address this complex issue. In banking arrangements developers are able to purchase credits from biodiversity banks in order to offset their impacts. This market based approach has the potential to transform the current failing arrangements of actors and institutions, while introducing innovative market forces, exposing the true value of biodiversity in decision making. Biodiversity offsetting is gaining currency in New Zealand, through the likes of increased applications in practice, proposed national level policy frameworks and guidance, and multiple pilot projects currently underway. Thus, it is vital to gain a deeper understanding of how these mitigation approaches might fit within the context of current mitigation frameworks. By reviewing two developments which have employed offsetting in an ad-hoc fashion, this research provides a unique insight into the decision making of resource consent applications, exposing the ambiguity of biodiversity valuation and the subsequently variable approaches to the mitigation of biodiversity impacts. In addition, a series of semi structured interviews provides valuable specialist perspectives and a deeper, more subjective analysis of current mitigation frameworks, further exposing the multiple barriers and opportunities offered by biodiversity offsetting and banking alike.