Third Party Supply of Offsets: Offset Market
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• Brokers • Banks • Over the counter
Credit Register
buyers
Third party supply of offsets – offset market
Create credits • landowner agreements • land surrender • upgrade protected areas
Landowners sellers
Developers
Conservation banks
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Risk to supplier increases
Demand high and certain Demand low and uncertain
Bespoke trades thru’ brokers
Like-for-like rules (including trading up) determine market segmentation:
• Low segmentation → banks and landscape solutions
• High segmentation → bespoke and individual site solutions
Like-for-like and offset supply
Different credit types
Aggregated offsets & banks
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Over The Counter - • a bank of credits available at price pre-set by the landowner
• based on ‘trading up’ to higher biodiversity importance
• offset specified in the permit condition
• offset plan provided at time of purchase
• walk in and buy - feels like ‘in lieu payment’
Market facilitation – Over The Counter
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• Plains Grassland - Victorian Volcanic Plain
Endangered grasslands
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Offset bank & protected area
• A 15,000 ha reserve through the purchase and surrender of freehold land
• Will provide offsets for 15 years of urban development in Melbourne’s west
• Designed via a Strategic Assessment Report of future impacts and offsets
• Land designated under an acquisition overlay
• Financed through a revolving fund, primed with government funding