The Nature Repair Market Bill 2023 has been introduced to parliament, marking a significant milestone for environmental restoration in Australia. The bill is part of the Federal Government’s plan to create a new market that rewards landholders for their efforts in conserving and restoring biodiversity and other natural assets. The market will also encourage businesses to invest in nature repair.
The Nature Repair Market is expected to attract investments from carbon market participants seeking projects that benefit nature, as well as philanthropic and Environmental, Social and Corporate Governance (ESG) motivated investors. It will also serve as the basis for Commonwealth-level environmental offset requirements under the EPBC Act referral assessment of development actions. Anticipated sources for market demand are cited by the Federal Government as including:
- carbon market participants seeking projects which also benefit nature
- philanthropic and Environmental, Social and Corporate Governance (ESG) motivated investment
The announcement of the Nature Repair Market Bill also signals the introduction of a new National Environmental Standard, which will ensure that offsets are the last resort and compensate for the impacts of development. The standard is currently under development by the Federal Government and expected to be released for public consultation later in 2023.
The Nature Repair Market will likely form a future basis for Commonwealth-level environmental offset requirements called up through the EPBC Act referral assessment of development actions. The Nature Repair Market announcement foreshadows the potential introduction of a new National Environmental Standard to ensure offsets are a last resort and, if required, will more than compensate for the impacts of development. The new standard is currently under development by the Federal Government and expected to be released for public consultation later in 2023.
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Further information on the Nature Repair Market Bill can be found here.