Credit obligations are generated when an activity, development or clearing proposal:
- enters the Biodiversity Offsets Scheme
- has avoided and minimised potential impacts to the greatest extent possible
- has residual, unavoidable impacts on biodiversity, and
- is approved by a consent or approval authority.
Accredited assessors identify credit obligations in a Biodiversity Development Assessment Report that they produce by applying the Biodiversity Assessment Method.
These reports set out the number and type of biodiversity credits that a scheme participant must retire for their proposal to meet a ‘no net loss’ standard.
If a proposal with unavoidable impacts on biodiversity is approved, the consent conditions will specify the credit obligation to be retired by the proponent.
The proponent must generally meet any credit obligation before the project or impact commences. Learn how to Determine and meet credit obligations.
Proponents can meet their credit obligations by:
- retiring biodiversity credits that they have generated at a biodiversity stewardship site or purchased on the market
- paying into the Biodiversity Conservation Fund and transferring the obligation to the Biodiversity Conservation Trust
- funding a biodiversity conservation action according to the requirements set out in the Ancillary rules
- committing to deliver mine site rehabilitation.
The consent or approval authority is responsible for ensuring compliance with credit obligations and any other conditions of the consent or approval.