2024 – the year of Nature Positive in Australia?
/Introduction
I can think of at least three national event that will be held this year focusing on Nature Positive, which follows the announcement by Hon Tanya Plibersek MP, Minister for the Environment, late 2022 of a Nature Positive Plan.
So, will 2024 be the year of Nature Positive in Australia? If, so, I’m in. Below is a summary of the presentation I gave last year at the EIANZ symposium on Nature Positive and EIA. It provides a broad background to the topic, discusses two broad definitions of Nature Positive and explores the role of offsets as a possible contributor.
Context and definitions
The United Nations declared 2021-2030 the UN Decade on Ecosystem Restoration, with the aim of halting the loss of ecosystems and protecting and restoring ecosystems all around the world. The UN noted that healthy ecosystems can enhance people’s livelihoods, help counteract climate change, and, importantly, stop the loss and collapse of biodiversity.
The Australian government announced a new environmental policy called Nature Positive. It defines it as
Nature positive is a term used to describe circumstances where nature – species and ecosystems – is being repaired and is regenerating rather than being in decline. (DCCEEW 2022, 2)
The title of the policy is “Nature Positive Plan: better for the environment, better for business”, which as noted by Ermgassen, Howard et al (2022) is popular with business and industry. The World Economic Forum has produced a report titled “The Future of Nature and Business” which, in part outlines:
… what transitions are needed to move towards a nature-positive economy and how businesses can be part of the solution paving the way for new opportunities. (World Economic Forum 2020, 8)
Ermgassen, Howard et al also note that
… if the approach remains vaguely defined and variably interpreted there is a high risk that it could be misleading, and used to ‘neutralise’ criticism of companies’ environmental practices … without driving genuine action to achieve global biodiversity goals. (P2).
To date, the Commonwealth has yet to clearly scope the extent of Nature Positive and how it will be applied to halt the decline in biodiversity in Australia, for example is it only about MNES or all of Nature?
Definitions of Nature positive are typically of two types – normative and holistic. A typical normative definition is:
… an equitable, nature-positive and net zero world [would] ensure there is more nature globally in 2030 than there was in 2020, by halting and reversing the loss of nature to put nature on a path to recovery for the benefit of all people and the planet by 2030. (IUCN Leaders Forum 2022, 3)
Nature positive involves two steps: first, halting the decline of the loss of nature and achieve a no net loss, and second, increasing the amount of nature over time. It requires two targets to be set: the year that net zero will be reached, and, once reached, targets for increasing nature e.g. an annual % increase.
As noted above, the UN sees a key link between human livelihood and ecosystem protection and restoration, which hints at a broader, holistic definition of nature positive.
A typical holistic definition of nature positive is from Obura, DeClerck et al (2023) which identifies two elements of Nature Positive: Nature-positive focus/biodiversity outcomes (interspecies justice) and People-positive focus/human outcomes (intra- and intergenerational justice).They conceptualise Nature Positive as having both a biophysical component and a human component, which recognises the connections between humans and nature, where humans derive a range of benefits from being in nature.
I would like to return to the value of defining Nature Positive in the holistic way in a later post, but this post will use the normative definition and examines how well biodiversity offsetting in WA has to date assisted in achieving Nature Positive outcomes.
Has the practice of Offsetting in WA contributed to Nature Positive outcomes?
Introduction and data used in this analysis
Environmental offsets are indirect compensatory measures used as mitigation for the unavoidable environmental impacts of development proposals. Pope et al (2021) identified three broad types of offsets:
Habitat protection elsewhere – land that has the same biodiversity values is purchased and conserved using a secure regulatory mechanism, often called acquisition or averted loss;
Improvement – where either cleared land is restored with native vegetation or degraded vegetation is improved and restored; and
Other or indirect measures – including research, education and financial compensation.
Offsets are often required to be like-for-like or in-kind, where the “gains from the biodiversity offset are for the same or very similar biodiversity components to those impacted.” (Bull, Hardy et al. 2015, 522) In practice, this favours averted loss offsets over restoration offsets. Averted offsets are immediately seen as like for like and avoids the risk with restoration that is may not end up being like for like once the habitat becomes stable and reaches maturity.
Records of offsets set under Parts IV (EIA) and V (Clearing Permits) of the WA Environmental Protection Act 1986 (EP Act) are kept in the WA Offsets register, and these data was analysed to determine if they are contributing to Nature Positive outcomes.
The register shows 65 offsets set through Part IV and 201 set through Part V.
Categories of offsets
Table 1 summarises the types of offset categories for both Part IV and V, which are also shown as percentages in Figure 1. It should be noted that some offsets include more than one type so the totals will be more than the 65 or 201, and the total percent greater than 100%
Table 1: EP Act Part IV and V offsets by category – raw numbers and percentages
Figure 1: EP Act Part IV and V offsets by category – percentages
Clearly, Part V offsets are dominated by acquisition and Part IV by providing money to an offsets fund, 28 of which are in the Pilbara and require contributions to the Pilbara Environmental Offsets Fund (PEOF).
The ‘net’ vegetation outcomes
Table 2 shows the net position with respect to vegetation lost/gained as a result of implementing the proposals and the offsets fully – this is an important caveat as some proposals may not be fully implemented as assessed. The Table shows two ‘net’ position calculations, including offsets which are acquisition and excluding acquisition. The second calculation is the true net position, but both calculations are shown. The table also includes the ratio of offset to the area of native vegetation to be cleared.
Table 2: Net vegetation outcome if proposals and the offsets fully implemented – including and excluding acquisition
In summary, if acquisition is included, Part IV offsets would lead to a 95% loss of vegetation cover, and Part V a 210% increase in vegetation cover, with a total of 89% loss overall. If acquisition is excluded, Part IV offsets would lead to a 99% loss of vegetation cover, and Part V a 69% loss in vegetation cover, with a total of 98% loss overall.
On these data, offsets are leading to a negative Nature Positive outcome.
But, what if the dollars in the offsets funds were used to restore land with native vegetation, would this lead to a positive Nature Positive outcome?
Using offsets funds for restoration
On the surface of it, it would seem that changing the focus of offsetting to restoration would lead to a better outcome for Nature, but there are concerns about the effectiveness of restoration. For example, Crouzeilles, Ferreira et al (2017)argue that natural restoration is 34-56% more effective than active restoration. Florentine, Gardner et al (2013) argue there is a lack of real data on the effectiveness of restoration noting that only 14% of 2,247 restoration projects in Victoria required monitoring. The key criticism is that restoration takes considerable time to reach full maturity - Xu, Dong et al(2022) note it takes 15-20 years for grassland restoration to be complete – although this can be ‘offset’ by using multipliers for restoration, which would also lead to a long-term net gain in vegetation cover.
Notwithstanding these concerns, restoration is likely to be a key policy measure in Nature Positive.
Kimball et al (2015) provide estimates for restoration costs as follows:
Site works - $2,500 per ha;
Seeding/establishment - $2,500 per ha; and
Maintenance (e.g. weeding) - $1,200 per ha per year.
If we allow 25 years for restoration to reach maturity and requiring maintenance, the total cost is $40,000. Given that these are 2015 figures, the cost is likely to be $50,000 in 2024 figures.
Table 3 below shows the data for offsets fund, including for research, and the average fund contribution per ha of clearing.
Table 3: Offsets funds summary
These data clearly show that even if the research money went into restoration, the funds would not even cover site works of restoration.
So, how much restoration would this money actually buy and would it lead to a positive Nature Positive outcome.
These data are summarised in Table 4.
Table 4: Area of restoration that offsets funds could deliver
The total area that could be restored from both funds is 2,682.7 ha or an improvement of only 1.7% if acquisition is excluded. If research money is also used for restoration (both funds total $34,911,450), this would add an extra 634.8 ha or a net improvement of 2.1% if acquisition is excluded.
Conclusions
I think the conclusions are fairly obvious.
First, if we consider offsetting acquisition to be a gain, then Part IV would lead to a net loss of 146,019.0 ha of vegetation, whereas as Part V would lead to a net gain of 6,759.8 ha of vegetation. However, this net gain argument of acquisition is hard to maintain – i.e. if not acquired, any proposal to clear any of this acquired land would need to go through an assessment process with no guarantee that approval would follow.
More accurately, therefore, Part IV would to a net loss of 151,765.5 ha of vegetation, and Part V a net loss of 2,230.0 ha of vegetation, a total of 153,995.5 ha lost.
If all of the offsets funds were used for restoration, this would add an additional 3,3175ha of vegetation, with the net outcome a loss of 150,678 ha of vegetation.
In short, offsetting in WA is delivering a net negative outcome for Nature.
Finally, it is very clear that the dollar value associated with native vegetation offsetting does represent the true value of clearing this vegetation, and is a hindrance to achieving a Nature Positive outcome. As noted in Table 3 the average value set for offsetting in Part IV is $838.94 per ha and for Part V $1,507.66. This is 1.5% and 2.7% respectively the cost of full restoration.
References
Bull, J. W., et al. (2015). "Categories of flexibility in biodiversity offsetting, and their implications for conservation." Biological Conservation 192: 522-532.
Crouzeilles, R., et al. (2017). "Ecological restoration success is higher for natural regeneration than for active restoration in tropical forests." Science advances 3(11): 1.
DCCEEW (2022). Nature Positive Plan: better for the environment, better for business. Canberra ACT Department of Climate Change Energy the Environment and Water, Australian Government.
Ermgassen, S. O. S. E. z., et al. (2022). "Are corporate biodiversity commitments consistent with delivering ‘nature-positive’ outcomes? A review of ‘nature-positive’ definitions, company progress and challenges." Journal of Cleaner Production 379: 1-12.
Florentine, S. K., et al. (2013). "Plant recruitment and survival as indicators of ecological restoration success in abandoned pasture land in Nurcoung, Victoria, Australia." Ecological Processes 2(1): 1-13.
IUCN Leaders Forum (2022). Towards an IUCN nature-positive approach: a working paper. Summary highlights. Jeju, Republic of Korea, International Union for the Conservation of Nature.
Kimball, S., et al. (2015). "Cost‐effective ecological restoration." Restoration Ecology 23(6): 800-810.
Obura, D. O., et al. (2023). "Achieving a nature- and people-positive future." One Earth 6(2): 105-117.
Pope, J., et al. (2021). "When is an Offset Not an Offset? A Framework of Necessary Conditions for Biodiversity Offsets." Environmental Management 67(2): 424-435.
World Economic Forum (2020). New Nature Economy Report II: The Future Of Nature And Business. In collaboration with AlphaBeta. Geneva.
Xu, Y., et al. (2022). "Target species rather than plant community tell the success of ecological restoration for degraded alpine meadows." Ecological Indicators 135.