Environmental services on private land

A successful national programe to provide market based incentives for landholders to deliver public good benefits on private land is needed and should:

a) operate nationally, but with regional organisations having an active role

b) allow multiple purchasers of environmental services

c) be voluntary, equitable and competitive between potential suppliers

d) be determined on the basis of the environmental outcomes of the area being conserved relative to the cost

e) be efficient to run and effective in providing value for money for landholders, taxpayers and the community.

Government response

Recomendations 10(a) to 10(e)
Noted.

The Australian Government notes that mechanisms to provide market based incentives to landholders, and managers, are potentially valuable tools to aid in delivery of NRM programes. Examples of Government programes include:

• The National Action Plan for Salinity and Water Quality (NAP) National Market Based Instruments (MBI) Pilots Programe — announced in April 2003. The $5 million first round selected 11 pilot projects to investigate the use of auctions, cap and trade approaches, offsets, a leverage fund and conservation insurance. Round one addressed key knowledge gaps about the use of MBIs for conservation purposes providing important insights in the design, management and implementation of such programes. On 2 December 2005, Australian Government Ministers announced up to $5 million in additional funding (provided by Australian, state and territory governments) for a second round of projects, due for completion in June 2008.
• The NHT Native Vegetation Regional Pilot Projects initiative, announced in April 2006, will invest $2 million over the next two years to develop more flexible and cost effective approaches to managing native vegetation on farms. The pilot projects will assess voluntary mechanisms, such as property management systems, incentive payments, offsets, extension and information services, to deliver more practical native vegetation management arrangements for landholders.
• The $8.5 million Environment Management Systems (EMS) National Pilot Programe announced in 2003 was designed to develop and assess the value of EMS as a business management tool. Findings from the programe’s mid-term review suggest EMS provides opportunities to leverage regional natural resource management outcomes and may have an important support role in regional incentive programes in the future.
• The Maintaining Australia’s Biodiversity Hotspots Programe aims to improve the conservation of hotspots on private land and leasehold land. At present in the Eastern Mt Lofty Ranges an auction system will enable successful landholders to enter into five or ten year management agreements and receive annual payments, over a three year period, for completion of management activities.
• The Tasmanian Forest Conservation Fund, established under the Supplementary Regional Forest Agreement with Tasmania, will pay private landholders to protect old growth and underrepresented forest through voluntary stewardship arrangements to be secured principally through an open tender process. Successful individuals will establish covenants to protect high value forest on their land and will develop active management plans for protected areas.