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An Example: Delma impar habitat in a Yass development
Alongside an ecology surveying company, I assessed a potential development site in Yass (NSW) for the presence of Delma impar (the striped legless lizard). Delma impar is a threatened species in NSW that prefers a critically endangered habitat (on the federal level) – native grassland. It is primarily threatened by degradation and fragmentation of said grassland. The survey was performed to the letter following the survey guidelines of the national recovery plan for this species. One Delma impar individual has been discovered on the site and this has several ramifications for how the development may proceed. This survey was part of an initial Biodiversity Assessment Method (BAM) stage 1 assessment, which can determine if the development proposal triggers the Biodiversity Offset Scheme and therefore requires a Biodiversity Development Assessment Report (BDAR). In the example of this Yass site it is likely to trigger the scheme as a threatened species is recorded on site and the development would involve a certain level of native vegetation clearing. The hypothetical BDAR would detail steps to avoid and mitigate impact on the striped legless lizard but they also have the option of paying the offset cost instead (although this costs more than mitigation/avoidance). Essentially this means they can pay for the protection of Delma impar habitat elsewhere or they can transfer the money and obligation to do so to the Biodiversity Conservation Trust (BCT).

Source: https://canberra.naturemapr.org/sightings/2726947
Offset Debt:
In theory the BCT would use this money to offset the negative impacts of the Yass development and in keeping with the like-for like rules it would protect Delma impar habitat elsewhere. However a 2022 audit of the Biodiversity Offset scheme by the NSW audit office found some severe failings in how the scheme operates in reality, failings that could impact a species like Delma impar drastically.
The audit found that credit supply is outweighed by demand, there aren’t enough credits to offset the amount of development. The audit discovered that developers have transferred $90 million total to the BCT for offsets yet only 20% of those obligations have been fulfilled. That is a lot of offset debt. There seems to be a particular lack of species credits (that directly offset impact on threatened species) despite a huge impact on species: 96% of developers demand for species credits haven’t been retired.
Implications for species like Delma impar
So even if the ecology surveying company performs their job well and the developers themselves stick to the legislation requirements there is no guarantee that their actions and money actually result in an offset. Species like Delma impar in sites like the Yass development can be impacted and the system doesn’t effectively do what it is supposed to do, offset that impact. Allowing the BCT to hold onto this offset debt essentially without any guarantee that it can or will be paid is great for development but fails to negate the impact of said development on Australia’s biodiversity.
For a threatened species such as Delma impar in a threatened ecosystem these failings are a huge concern for their survival, their habitat can be impacted and ultimately destroyed without any guarantee of reparation.
The 2022 audit found that the Department of Planning and Environment (DPE) of NSW lacks a strategy to solve this credit supply shortage. Recently however the NSW government produced the Biodiversity Credits Supply Fund and task force, with $107 million at there disposal and the aim to seek out credit properties and expediate the process of creating credits. Perhaps this could be a solution, hopefully the fund and taskforce can meet the offset demands of development past present and future.
Sources:
https://www.audit.nsw.gov.au/our-work/reports/effectiveness-of-the-biodiversity-offsets-scheme
Looks like an interesting experience and eye-opening in terms of the shortfalls of biodiversity offsets.
I have various types of lizards on my farm(onebendintheriver.com) but I don’t plan to sell any of them to developers as offsets. If I did it wouldn’t be adding protection to my lizards anyway. Logically developers should not be allowed to destroy habitat until offsets are found.