A guide to buying biodiversity credits in New South Wales

In brief - A few things developers, public authorities and others should know about buying and transferring biodiversity credits in NSW

Engaging in development that will impact the natural environment (in particular biodiversity) may necessitate the purchase, transfer and retirement of biodiversity credits. Negotiating the purchase directly with the owner of those credits can lead to significant costs savings.

This article gives some practical tips for things you should look out for in NSW when negotiating the purchase and transfer of biodiversity credits. Like any market, players need to consider and guard against potential distortions.

Landowners in NSW can generate credits by establishing biodiversity stewardship sites. They do this through setting aside and managing tracts of their land in return for classes of credits, which can be publicly traded. There is a statutory process to register these sites. Credit holders (usually landowners) then seek to sell