The Nature Repair Act 2023 (Act) establishes a framework for a national, voluntary biodiversity market designed to function alongside Australia’s existing carbon market.
Under the scheme, individuals and organisations can undertake nature repair projects to generate a tradable “biodiversity certificate” similar to the concept of an “Australian carbon credit unit” established by the legislation underpinning the existing carbon market.
Further similarities between the proposed new biodiversity certificates framework and the existing carbon credits framework include:
- Methodology determinations – these determinations will establish the technical requirements for project registration
- Permanence – unless the method stipulates otherwise, projects will be subject to a permanence period
- Certificates – biodiversity certificates will be personal property and be able to be transferred or sold
- Government purchase – the Federal Government will be able to purchase biodiversity certificates under a “biodiversity conservation contract”, and
- Administration – the framework will be primarily administered by the Clean Energy Regulator.
Where to from here?
The Federal Government and Clean Energy Regulator are to, among other things, develop the methods that will underpin the operation of the legislation, prepare guidance documents and establishing systems and processes necessary for the effective operation of the market.
Thynne + Macartney’s Agribusiness team will continue to keep you updated as the framework continues to be developed.
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