The recently introduced Nature Repair Market Bill 2023 aims to facilitate investment in nature repair projects, in line with the global goal of halting and reversing biodiversity loss. The Australian Government’s Nature Positive Plan commits to protecting 30% of Australia’s land and seas by 2030, with the establishment of a Nature Repair Market to help achieve this target. Biodiversity projects registered with the market can generate government-backed Biodiversity Certificates, which can also qualify for Australian Carbon Credit Units (ACCUs) under the Carbon Credits (Carbon Farming Initiative) Act 2011. The Nature Repair Market differs from existing state and territory-based biodiversity credit markets, although they may overlap in terms of offsetting biodiversity impacts. Landholders and biodiversity project proponents can potentially benefit from the wider pool of purchasers for Biodiversity Certificates, especially for projects with lower credit supply. The Nature Repair Market will also work in tandem with carbon markets, although a mechanism for generating both ACCUs and Biodiversity Certificates from a single project is yet to be determined. The market will require biodiversity projects to result in the enhanced or protected biodiversity of native species unlikely to occur otherwise. Carbon credits with Biodiversity Certificates will likely attract a premium, reflecting the increasing importance of co-benefits beyond carbon abatement. The market aims to reduce barriers to investment in nature repair projects and provide robust bases for businesses to claim their green initiatives. The new framework may reduce supply in existing biodiversity markets and increase difficulty in securing necessary credits for development. It is important for businesses and investors to pursue appropriate environmental commitments and have a trustworthy basis for making green claims, as regulators are increasingly cracking down on greenwashing.
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It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...
