New South Wales Plan for Nature

NSW plan for nature NSW Government response to the reviews of the Biodiversity Conservation Act 2016 and the native vegetation provisions of the Local Land Services Act 2013 July 2024 Quorrobolong Scribbly Gum Image: Mark Cameron/DCCEEW Acknowledgement of Country The NSW Government acknowledges the Traditional Custodians of the lands where we work and live. We pay respect to Ancestors and Elders past and present. We recognise and learn from the strengths of the Aboriginal peoples of New South Wales and their continuing connection to, and unique cultural and spiritual relationship with, Country. We are dedicated to building and sustaining relationships with Aboriginal people and communities across New South Wales. Contents Acknowledgement of Country ii Foreword 3 Executive summary 5 Partnership with Aboriginal communities 6 Part A – Biodiversity Conservation Act review 8 New biodiversity architecture for NSW 8 Pillar 1: Nature Positive Strategy 10 Pillar 2: Nature Positive Spatial Tools 11 Pillar 3: Nature Positive Development 12 Pillar 4: Species and ecosystem recovery 14 Pillar 5: Data-informed decision-making 17 Pillar 6: Leveraging private investment 18 Part B – Local Land Services Act review 22 Overview of the statutory review 22 Government’s response to the review 22 Appendix A: Scope statement 27 Summary of the NSW Government’s response to the recommendations 28 Review of the Biodiversity Conservation Act 2016 28 Review of the native vegetation provisions of the Local Land Services Act 2013 39 Lower Hunter Spotted Gum Ironbark Forest threatened ecological community Image: Mark Cameron/DCCEEW Foreword Biodiversity in NSW is in crisis. We must take urgent action to put nature on a path to recovery. Government cannot simply be the manager of a steady decline – we must actively turn around the loss and restore habitats and biodiversity. Our goal is to leave nature better off than we found it. In recent decades, there has been a focus on taking strong action on climate change and driving down emissions. The NSW Government believes that a similar collective focus is needed to protect our state’s biodiversity and ecosystems. Australia is the only country that is both a global biodiversity hotspot, a major agricultural exporter and a member of the Organisation for Economic Co-operation and Development (OECD). What we do here, in our state, is being watched around the world. We recognise that there are many pressing needs in NSW. We must build the homes that are so desperately needed, and roll out the renewable energy projects that will power our future towards net zero and support sustainable food and fibre production. This document relates to 3 key election commitments: to reform the biodiversity offsets scheme, to stop excess land clearing and to strengthen environmental protections. Our ambition is to better protect and restore the environment so that current and future generations can prosper. This can be done while delivering clearer frameworks for business and supporting productive industries – where value is added for landholders who protect and restore biodiversity on their properties and undertake sustainable farming practices. A strong and healthy environment delivers better quality of life for our people and stronger agricultural outcomes through improved soil, water quality, and pest and weed control. We also acknowledge the intrinsic relationship between biodiversity and Aboriginal culture, and recognise the social, economic and environmental benefits that flow from caring for Country. To achieve this, a great deal of work is needed. We invite the whole community to work with us as we deliver these reforms. The Hon Penny Sharpe MLC Minister for the Environment The Hon Tara Moriarty MLC Minister for Agriculture 3NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Banksia conferta ssp conferta, Coorabakh National Park Image: Helen Jessup/DCCEEW Executive summary This document is the NSW Government response to the independent statutory review of the Biodiversity Conservation Act 2016 (BC Act), led by Dr Ken Henry AC, and the review of the native vegetation provisions of the Local Land Services Act 2013 (LLS Act). Part A is structured against the BC Act review, and Part B against the LLS Act review. We recognise and accept that these reviews are linked. 1 www.oecd.org/environment/resources/biodiversity/Executive-Summary-and-Synthesis-Biodiversity-Finance-and-the Economic-and-Business-Case-for-Action.pdf As well as considering the reviews, we have also considered broader government commitments and the wide range of reports, research and developments in the sector. One thing is clear: nature is declining and must be set on a path to recovery. Our driving ambition is to protect what is left, restore what has been degraded and set biodiversity on a path to recovery. Additional effort must be directed into proactive landscape-scale biodiversity protection, restoration and management. We must go beyond the aim of halting loss to one of achieving overall ecosystem gains. Central to this is amending the BC Act to remake its objectives and operations, and to introduce a NSW Nature Strategy and changes to the Land Management (Native Vegetation) Codes. This ambition to protect, restore and improve biodiversity in NSW will contribute to ‘nature positive’ aims established at the national and international levels. A critical success factor for these aims will be bringing key stakeholders on this journey and thereby gaining support for change. We will pursue this intent with a range of short, medium and longer term initiatives. What does ‘nature positive’ mean? Nature positive means the environment is being repaired and regenerated. This contrasts with traditional sustainability approaches, which have sought to minimise negative impacts by slowing or stabilising the rate of biodiversity loss. As well as for their own intrinsic value, nature and biodiversity and the services they provide must be protected and restored for the economic security of our society. The services delivered to the global economy from biodiversity are valued at an estimated $190 trillion to $200 trillion (AUD) per year.1 We simply cannot afford to not act. Future generations cannot afford for us to not act. This response is the first step in responding to the findings of the statutory reviews. This is the start, not the end of our reform. The actions outlined are informed by stakeholder and community engagement undertaken as part of the statutory reviews and during the development of this response. The NSW Government will prioritise early and regular engagement with key stakeholders in the design and implementation of these reforms. 5NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Partnership with Aboriginal communities The reviews of the BC Act and native vegetation provisions of the LLS Act both emphasised the importance of co-designing biodiversity and land management legislation, policies and programs with Aboriginal people. Aboriginal people cared for and lived in harmony with the land and biodiversity of this country for tens of thousands of years. They were, and remain, the first conservationists and the first land managers. The NSW Government acknowledges the wide range of cultural, social and economic interests Aboriginal people have in biodiversity and land management issues. We are committed to exploring, in partnership with Aboriginal stakeholders, new and better ways to support Aboriginal people to connect with and care for Country. We will undertake tailored engagement with Aboriginal organisations, communities and people to ensure their views, knowledge, values and interests underpin the development and implementation of our actions and initiatives under this response. We will: • build genuine partnerships to deliver both biodiversity outcomes and benefits for Aboriginal communities • recognise the commitment of time and resources by Aboriginal organisations, communities and people • seek free, prior and informed consent • respect Indigenous Cultural and Intellectual Property rights. We anticipate tailored engagement with Aboriginal organisations, communities and people commencing in the second half of 2024. This will include exploring options to address biodiversity-related constraints and opportunities for land returned under the NSW Aboriginal Land Rights Act 1983, to ensure social, economic and cultural aspirations can be met from that land. Any engagement and reform will support the NSW Government’s commitment to standalone Aboriginal cultural heritage legislation, our commitment to a process of Treaty with Aboriginal people, and our commitment to achieving the objectives in the National Agreement on Closing the Gap. 6 Part A Biodiversity Conservation Act Review Part A – Biodiversity Conservation Act review The BC Act review recommended a new nature positive architecture for NSW and outlined this through 6 key pillars. There is overlap between some of these pillars. The NSW Government will take immediate and longer term action across the core elements of the review report. New biodiversity architecture for NSW Review findings Much has changed in the five years since the objects of the Act were crafted. The current objects are no longer fit to address current and future biodiversity challenges. The objects of the Act emphasise the need to ‘maintain’ a healthy and resilient environment, consistent with the principles of ecologically sustainable development. This ‘protect and conserve’ paradigm is out of step with contemporary global and national ambitions to pursue a ‘nature positive’ future. The Act is not meeting its objects and is very likely never to do so. In the Review Panel’s view, the policy failure is due to two things. First, many of the operative provisions of the Act are limited in scope. Second, the Act lacks statutory primacy. The objects and architecture of the Act should be rewritten to align with the ambition of the Global Biodiversity Framework and give effect to a nature positive approach. Just as NSW has led the country in setting an ambitious plan to reach net zero emissions, the State should now commit to a goal of equivalent ambition for biodiversity. The wellbeing of the people of NSW depends upon a strong policy commitment to ‘nature positive’. Substantial reform is needed to deliver a nature positive state for NSW. Nature positive demands a shift in mindset and a willingness to prioritise biodiversity concerns in decision making. Government response The NSW Government agrees that the BC Act is not meeting its primary purpose, which is to maintain a healthy and resilient environment, now and into the future. Substantial amendments to the BC Act are required to support our ambition to set nature on a path to recovery. Ecologically Sustainable Development (ESD) will be retained but modernised as the key sustainability objective across relevant NSW legislation. To address the issue of primacy raised in the review, the government is committed to identifying opportunities to improve biodiversity outcomes under other relevant laws. With the appropriate design and implementation of these reforms, assigning primacy to the BC Act is not being pursued. The NSW Government will monitor outcomes of the reforms to inform future decisions about these matters. 8 Government actions 1. Amend and strengthen the Biodiversity Conservation Act 2016 • We will revise the objects of the BC Act to support our ambition to set nature on a path to recovery. • The NSW Government will work with experts and stakeholders to identify other potential amendments to the operative provisions of the BC Act to support the revised objects. This will include consideration of how the BC Act can contribute to the achievement of national and international biodiversity targets. • We will amend operative provisions of the BC Act to give the revised objects meaning. • BC Act reforms will prioritise Aboriginal cultural values, connecting to Country, cultural practices and opportunities for Aboriginal economic development. 2. Strengthen our application of Ecologically Sustainable Development • We will modernise our understanding and application of ESD principles with a special focus on ensuring biodiversity conservation and intergenerational equity are being achieved in practice. • We will improve consideration of climate change and cumulative impacts in ESD decision-making. • Cultural considerations will be better integrated into the scope and application of ESD, including Aboriginal cultural values and traditional ecological knowledge. • We will consider the need for additional support and guidance for decision-makers and other stakeholders to ensure improved application of ESD. 3. Review relevant legislation to strengthen biodiversity outcomes • We will review NSW legislation with biodiversity implications to identify opportunities to improve biodiversity outcomes. The initial focus will be on legislation directly intersecting with the BC Act and legislation with the greatest potential biodiversity impacts. • Regular statutory reviews and other legislative update processes for relevant laws will be harnessed as an efficient way to deliver the reviews. • We will identify where biodiversity considerations might be given additional weight to support our overall ambition to set nature on a path to recovery. • These reviews will be led by government agencies responsible for the legislation and undertaken in consultation with experts and stakeholders. 4. Report on government biodiversity impacts and outcomes • We will develop methods to identify and disclose nature-related risks and impacts within government, alongside strategies to address them. • We will pilot a new biodiversity reporting framework to enable agency impacts to be transparently reported. • This will also allow us to identify any unrealised conservation opportunities across portfolios. • We will establish new processes to better consider the potential biodiversity impacts from government decision-making. 9NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Pillar 1: Nature Positive Strategy Review findings The Review Panel recommends fundamental reform. It found an integrated Nature Positive Strategy is needed to guide prioritised and strategic actions and investment across different land tenures by government. Government response The NSW Government will work across government and the community to develop a new Nature Strategy. We will work with experts to analyse and model the impacts and opportunities from delivering the strategy to achieve long-term, sustainable nature repair. This will consider the impacts of climate change on species and ecosystems. Government action 5. Develop and implement the NSW Nature Strategy • We will prepare and publish a NSW Nature Strategy, and make it a legal requirement under the BC Act. • The strategy will guide public and private investment and action to protect, connect and restore ecosystems and landscapes across tenures. • The strategy will set goals and targets for conservation and restoration – including landscape restoration, species recovery and addressing threats to nature – and articulate our contributions towards national targets and commitments. • We will work with experts to analyse the costs and benefits of achieving long-term, sustainable nature repair and understand the necessary preconditions for achieving these outcomes. • We will consult across government, with experts and with the broader public during strategy development. 10 Pillar 2: Nature Positive Spatial Tools Review findings There is a need for stronger planning to achieve nature positive outcomes, in particular, promoting landscape connectivity and ecosystem resilience. Strategic land use planning does not currently accord primacy to biodiversity considerations. Identifying and providing robust information on biodiversity in a single spatial tool will enable upfront consideration of biodiversity, provide certainty and ensure consistent and strategic decisions, supporting nature positive outcomes. The spatial tool should identify ‘no-go’ areas where development is not permitted due to unacceptable biodiversity impacts. Government response The NSW Government will bring together the best evidence and experts to identify and map areas of current and future high biodiversity value, based on defined criteria and robust shared data. This will provide clear guidance to the community and decision-makers about areas where biodiversity impacts should be avoided. This information will continue to be incorporated into strategic planning processes and inform land-use and development decision-making. Government action 6. Identify and map areas of high biodiversity value • We will map areas of current and future high biodiversity value to provide clear guidance to the community and decision-makers about areas where biodiversity impacts should be avoided. • While this map is not intended to operate as a ‘no go’ zone map, the details will be incorporated into strategic planning processes and inform land-use and development decision-making. • The adequacy of protections for land identified (currently and in the future) as being of high conservation value will be reviewed to inform future decisions about the need for new mechanisms to deliver up-front clarity on unacceptable impacts on biodiversity. 11NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Pillar 3: Nature Positive Development Review findings The Review found that to support a nature positive future, development in NSW must be biodiversity positive, underpinned by best practice principles. The Review found that the Biodiversity Offsets Scheme needs a clear nature positive objective, which would align the scheme with objectives of the Global Biodiversity Framework. Such an objective would send a clear signal to decision makers, proponents and the community. The Review identified the need to improve outcomes from the Scheme through: • a ‘net positive’ objective • enhanced powers for the Minister for Environment • broader and more consistent application of the Scheme • supporting the functioning of the biodiversity credit market • improving transparency and accountability • simplification of the Scheme and reduction in regulatory burden. Government response Almost half the recommendations in the BC Act Review pertain to the Biodiversity Offsets Scheme. The scheme has also been critiqued across a range of reviews and inquiries. At the 2023 State Election, the NSW Government committed that it would fix the Biodiversity Offsets Scheme. We are committed to offsets being a genuine last resort. We will front-load environmental considerations in planning processes and ensure the offset hierarchy – to avoid, minimise and then offset impacts on the environment – is applied. Some impacts, however, are unavoidable. For this reason, the NSW Government is committed to supporting transparent, rigorous offsetting and a functioning biodiversity credit market. This will be needed to support clear government priorities for housing, renewable energy and critical infrastructure. Government actions 7. Front-load nature and biodiversity considerations in regional planning • Biodiversity considerations will be front-loaded in regional planning processes, to enable areas of potential conflict to be identified and unacceptable impacts on biodiversity to be avoided. • Biodiversity of cultural value to Aboriginal people and traditional ecological knowledge will better inform strategic land-use planning. • We will leverage and align with regional planning initiatives from the Australian Government and other jurisdictions to provide greater certainty and streamline regulatory requirements where possible. • We will ensure fit-for-purpose biodiversity data requirements for use in strategic land-use planning. 12 8. Improve bio-certification to drive better strategic land-use planning outcomes • We will co-design improvements to the bio-certification process with stakeholders to increase its use and improve land-use planning outcomes. • We will consider new assessment approaches, such as scalable survey methods and novel survey technologies, to support bio-certification at scale. • Land that has been avoided through bio-certification will be considered for improved protection, such as through zoning or management actions. 9. Improve biodiversity outcomes from the Biodiversity Offsets Scheme • We will amend the BC Act to require the scheme to transition to overall ‘net positive’ outcomes over time, going beyond the current ‘no net loss’ standard. • A new statutory standard will be introduced, requiring proponents to demonstrate how they have genuinely avoided and minimised impacts to biodiversity, with a focus on avoiding impacts on entities at risk of a serious and irreversible impact. • A new public register will provide transparency regarding ‘avoid’ and ‘minimise’ measures for approved developments. • We will provide stronger and clear guidance to support decision-makers in determining serious and irreversible impacts on biodiversity. • We will update the way in which credit obligations are calculated for areas of high biodiversity value, consistent with the outcomes of the 5-year review of the Biodiversity Assessment Method. • The option for major mining proponents to meet a credit obligation through a commitment to ecological mine site rehabilitation will be removed. We will work with industry to explore options that optimise the use of the land post-mining, including for environmental, renewable energy or other purposes. • Concurrence from the Minister for the Environment will be required for state significant development or state significant infrastructure projects where conditions other than the requirement for the full number and type of credits to be met are proposed. • We will strengthen the processes and requirements for the Biodiversity Conservation Trust to acquit credit obligations transferred to the Biodiversity Conservation Fund, including introducing a time frame. • The operation and administration of the Biodiversity Conservation Fund and the Biodiversity Stewardship Payments Fund will be improved to maximise delivery of strategic offsetting and environmental outcomes. 10. Support a functioning biodiversity credit market • We will continue to invest in the Biodiversity Credits Supply Fund. • We will consider practical changes to geographic constraints for trading ecosystem credits and categorisation of offset trading groups, but only where this will not compromise biodiversity outcomes. • Flexibility may be required for small-scale, regional developments and this will be considered. • The manner in which biodiversity credits are calculated from active restoration of stewardship sites will be improved, consistent with the outcomes of Biodiversity Assessment Method review. • To strengthen upfront offset obligations, we will establish new powers to enable limits to be imposed on proponents’ ability to transfer an offset obligation to the Biodiversity Conservation Fund in certain circumstances. 13NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act 11. Increase efficiency and transparency of the Biodiversity Offsets Scheme • We will invest in digital systems to improve the collection, release and integration of data including via the NSW Planning Portal. This will include introducing new statutory registers to track approved offset obligations and when they are met, and provide transparency for serious and irreversible impact decisions. • The BC Act will be amended to establish additional powers to improve the quality and consistency of biodiversity assessment reports, including enabling directions to be issued to accredited assessors in relation to the application of the Biodiversity Assessment Method and the preparation of assessment reports. This will support more timely decision-making. • We will consider whether a new offsets mechanism is required specifically to meet the urgency of the Electricity Infrastructure Roadmap. This acknowledges the dual imperatives of climate and biodiversity, and the need to maximise strategic biodiversity outcomes. 12. Better balance the application of the Biodiversity Offsets Scheme with biodiversity risks • We will amend scheme entry thresholds to remove from the scheme small, low-impact local developments and clearing proposals under the State Environmental Planning Policy (Biodiversity and Conversation) 2021. • The Minister for the Environment will be given a new power to switch off the scheme for local development after natural disasters such as bushfires and floods, or in other exceptional circumstances. Pillar 4: Species and ecosystem recovery Review findings The commitment of Australian Environment Ministers to accelerate work towards zero new extinctions means that merely slowing the rate of biodiversity loss is no longer an acceptable goal. The recovery and restoration of species and ecosystems, and achieving zero extinctions, including threat abatement, will be most efficient and effective if delivered within the proposed Nature Positive Strategy. Regulatory management of human interactions with native plants and animals, including wildlife rescue and rehabilitation, is complex and overly burdensome, and it is not always clear under what legislation the issues are intended to be addressed. Government response The NSW Government will improve its programs to ensure the delivery of the twin national objectives of no new extinctions and restoring threatened species and ecosystems. The NSW Government will focus its biodiversity conservation program on ecosystem recovery and restoration, while continuing to invest in critically endangered species and species not well suited to broad-scale management. We will deliver improvements to threatened species listing processes and the regulation of human– wildlife interactions. The government has already announced a review and consultation to consider options to address issues facing the wildlife care and rehabilitation sector. 14 Aerial photo of Rusty Plum, Plum Boxwood, Niemeyera whitei habitat, Torrington State Conservation Area Image: John Spencer/DCCEEW Government actions 13. Improve species and ecosystem programs • We will review the biodiversity conservation program to support the objectives of no new extinctions and restoring threatened species and ecosystems. • We will design cross-tenure, ecosystem-scale initiatives and interventions to protect, connect and restore multiple species concurrently at a landscape scale. • Targeted, species-specific management actions will continue to seek to prevent further declines of species and ecosystems at most risk. • The status and trajectory of listed threatened species and ecological communities and the key threatening processes impacting them will be regularly reported on. This reporting will help inform whole-of-government approaches, particularly in relation to threat abatement. 14. Coordinate our approach to listing threatened species and ecological communities • We will support the NSW Threatened Species Scientific Committee to take a strategic, prioritised and risk-based approach to assessing species and ecological communities, including undertaking rapid assessments. • We will work with Aboriginal organisations, communities and people and the Threatened Species Scientific Committee to better incorporate traditional ecological knowledge into the assessment process. • Regulatory certainty will be improved by delivering a more comprehensive and holistic approach to managing threats to aquatic and marine wildlife and ecosystems, particularly for marine mammals. 15. Expand private land conservation initiatives • The Biodiversity Conservation Trust’s private land conservation program will be strengthened. • We will introduce stronger private land conservation agreements that protect sites of high biodiversity value from incompatible land uses. • Private land conservation agreements will be broadened to recognise and protect Aboriginal cultural values and traditional ecological knowledge. • We will improve the management, funding and reporting of private land conservation agreements. Silver cassia Image: Tim Cooney/DCCEEW 16 Pillar 5: Data-informed decision-making Review findings The Review found there are opportunities to better capture, analyse, manage and utilise biodiversity data to inform decision-making. There are deficiencies in the biodiversity information presently available. Quality, curated data is required to ensure a transparent and open understanding of biodiversity status and trends and the impacts of threats and management interventions. The Review also expressed that there is a need to monitor in real time what is causing the biodiversity decline, and what interventions are working to repair what has been lost. Robust monitoring, evaluation and reporting of outcomes is needed. Government response There are challenges in obtaining a clear picture of biodiversity in NSW due to data gaps, lack of system integration and variable approaches to biodiversity reporting. A primary source of truth is needed. The limitations of data that is not centralised and shared can affect our understanding of biodiversity status, trends and impacts and impede our ability to make evidence-informed decisions. The NSW Government is committed to securing comprehensive, scientifically robust and up-to date biodiversity data and reporting, and to improving forecasting of future biodiversity condition based on projected climate change, threats and pressures, and proposed actions and interventions. Wherever possible, this data will be shared across agencies and with the public to ensure government accountability and transparency. Government actions 16. Improve and upgrade biodiversity data gathering and management • We will make improvements to existing environmental information systems to optimise their usefulness and improve our understanding of biodiversity, vegetation and habitat extent, condition, connectivity and resilience. • We will undertake early data initiatives, including: – upgrading BioNet and SEED Portal capabilities, inputs, access and user experience – reviewing the Biodiversity Indicator Program to update program indicators and enable more dynamic reporting – committing to ongoing native vegetation monitoring, including considering establishing a legislative requirement, and enhancing the Statewide Landcover and Tree Study program to capture both vegetation losses and gains, including revegetation and regrowth, reduce reporting time lags and enable accurate reporting of net changes in vegetation cover over time – augmenting current biodiversity data and information with long-term, on-ground field monitoring of key fauna and flora, prioritising knowledge gaps across NSW bioregions – continuing to refine the State Vegetation Type Map and recognising it as the primary standard for understanding ecosystems distribution across NSW – investigating options to undertake near real-time data acquisition to allow for more frequent biodiversity reporting and enable faster management responses 17NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act – investigating the integration of ecosystem-level mapping and reporting to improve our understanding of ecosystem functions and associated services, including alignment with the International Union for Conservation of Nature’s Global Ecosystem Typology. 17. Deliver decision-ready information and tools • We will deliver improved government data, mapping and tools to better inform decision-making. • We will improve the accuracy of the Biodiversity Values Map and finalise the draft Native Vegetation Regulatory Map. • We will commence comprehensive identification and mapping of threatened ecological communities. 18. Improve data quality, accessibility, sharing and custodianship • Nationally, environment ministers have agreed to work together to improve the quality, accessibility and interoperability of environmental data. Jurisdictions have also agreed to work together to identify and resolve barriers to information sharing. • In NSW, we will ensure that the biodiversity data used to inform decision-making is quality-assured and able to deliver consistent, high-quality outputs, providing confidence and transparency. • The NSW Government will also identify opportunities to consolidate and centrally manage datasets in specific circumstances. 19. Establish a natural capital accounting framework • NSW will be the first Australian jurisdiction to develop and implement local and statewide natural capital accounting frameworks. • The accounts will provide aggregated data on stocks and flows of natural capital, which may inform government decision-making, support nature-based markets and monitor outcomes over time. Pillar 6: Leveraging private investment Review findings The Review found there is growing acknowledgement of the risks that biodiversity loss, ecosystem degradation and the consequential decline of natural capital and ecosystem services pose to business, prompting industry groups, corporates and others to take action. Given the very high costs of the landscape scale restoration required, substantial private investment will be needed to complement government investment to deliver nature positive outcomes. Government response To leverage private investment, the NSW Government is committed to implementing high-quality natural capital programs in NSW. Globally, the private sector is already moving to invest in natural capital products and services as a means of improving their environmental credentials, reducing environmental impacts and lowering financial risk. By modernising incentives for landholders and reducing barriers for investors, the NSW Government will maximise participation and achieve long-term, large-scale environmental outcomes. 18 Government actions 20. Build landholder capability to embed practice change and boost participation • We will implement regionally based education and capability services to drive improvements in land management practices and support landholders to participate in natural capital markets. • Landowner initiatives will focus on supporting a culture of environmental stewardship, fostering partnerships with education providers and supporting landowners. • Advisory and extension services will integrate property-scale natural capital accounts to empower landholders to plan for, monitor and measure natural capital outcomes as part of business-as-usual. 21. Diversify and expand access to conservation and natural capital investments • We will leverage existing programs, such as Landcare and the Biodiversity Conservation Trust, to ensure the good work already being implemented can contribute to natural capital markets, along with the introduction of new incentives and programs. • We will pilot and implement regional and property-scale natural capital accounting and investment frameworks, which monitor environmental condition over time and can help government and landholders prioritise future investment at a local scale. • We will analyse incentive options, with input from landholders, to design and deliver incentives that provide landholders with confidence and effectively support longer term practice change. • We will engage Aboriginal organisations and communities to design natural and cultural capital support products that value traditional knowledge and reflect their needs and aspirations. • We will invest in practical research and demonstration to support landholders to assess and adopt practices that best align with their business objectives and overcome barriers to change. 22. Support growth of robust natural capital markets • We will support the growth of high-quality and high-integrity natural capital markets and make NSW a destination of choice for investment in nature repair. • We will work with the Australian Government on the development of the national Nature Repair Market and national carbon market, and design NSW natural capital programs and projects to leverage national schemes. • We will provide guidance on methodologies, measurements and practices for natural capital activities and accounting to industry, investors and landowners. • Approval pathways for major natural capital investments, such as investments in blue carbon and landscape restoration, will be reconsidered by government to streamline and fast-track important restoration works. 19NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Darling River, Wilcannia 21NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Part B Local Land Services Act Review Part B – Local Land Services Act review 2 Section 3(e) of the LLS Act provides that the objective of the native vegetation provisions is to ensure the proper management of natural resources in the social, economic and environmental interests of the state, consistently with the principles of ecologically sustainable development (described in section 6(2) of the Protection of the Environment Administration Act 1991). Overview of the statutory review The Minister for Agriculture is required to carry out a 5-year statutory review (the Review) of the native vegetation provisions contained in Part 5A, Schedule 5A and Schedule 5B of the Local Land Services Act 2013 (the LLS Act), to determine if the policy objectives of those provisions of the Act remain valid2, and whether the terms of those provisions remain appropriate for securing those objectives. The review was initiated in September 2022 with the final report tabled in NSW Parliament by the Minister for Agriculture on Thursday 24 August 2023. Local Land Services (LLS) supported the Minister for Agriculture to undertake this review, with guidance from an Independent Expert Advisory Panel (Expert Panel). Government’s response to the review The NSW Government is committed to stopping excess land clearing, reducing the level of unallocated clearing and improving the management of native vegetation on private rural land. This is why we are committing to implementing the recommendations in the statutory review and adopting additional actions to strengthen environmental protections in the Land Management Framework. Together the integrated package of actions will support the government’s commitment to stop excess land clearing and improve environmental outcomes on the ground. This will be achieved through: • making amendments to the Land Management (Native Vegetation) Code 2018 (the Code) to strengthen environmental protections that will reduce areas approved to be cleared and increase the area of native vegetation protected and managed in perpetuity through set asides • reinstating caps on land clearing • putting an end to high levels of unallocated clearing by finalising the Native Vegetation Regulatory Map and improving how we regulate and protect ground cover–dominant landscapes • improving the protection and management of critically endangered ecological communities, in line with recommendations in the BC Act review earlier in this document • incentivising landholders to protect, enhance and restore their native vegetation, including supporting landholders to access the emerging natural capital markets • continuously improving the Land Management Framework via monitoring and reporting that is evidence based • requiring landholders to notify LLS or obtain approvals from LLS for all parts of the Code • ensuring greater scrutiny and accountability for higher risk Code approvals by requiring LLS senior executive sign-off. 22 In developing its response, the NSW Government has considered the findings and recommendations of both the statutory reviews for the BC Act and native vegetation provisions of the LLS Act, the government’s election commitments, further stakeholder feedback provided in response to the statutory reviews and other NSW Government economic and social priorities. Government will continue to work with key stakeholders – including landholders, Aboriginal communities, local councils, and environmental and industry stakeholders – on implementing the statutory review recommendations and additional actions proposed in this response. Strengthen protections in Code-based clearing To be consistent with the NSW Government’s ambition for nature and commitment to stop excess land clearing, we propose strengthening the environmental protections in the Land Management (Native Vegetation) Code to: • strengthen the prescriptions for managing invasive native species to reduce the risk of misuse of this provision for clearing • specify environmental management requirements for retained areas under the Pasture Expansion (Mosaic Thinning) provisions to prevent the overuse of this provision for clearing • remove area discounts for set asides3 to ensure protected parcels exceed the size of the area approved to be cleared • re-introduce a cap4 on equity clearing and require approval from the Native Vegetation Panel for anything above the cap • increase notification and certification requirements to give landholders certainty, improve transparency and reduce unallocated clearing. There will be further opportunities for stakeholders and the general public to comment on the proposed Code changes through public consultation prior to the changes being made. The NSW Government is committed to continuous improvement to minimise environmental risks while supporting the needs of landholders. Continuous improvement will be informed by evidence from a Land Management Monitoring, Evaluation and Reporting Framework, the development of which will be overseen by the Natural Resources Commission. Better manage environmental risks Review findings The review identified 3 areas of improvement in the Land Management Framework to better manage potential environmental risks: • improving administration and outcomes of authorisations to manage environmental risk and reduce cleared area for invasive native species and mosaic thinning • strengthening protections for critically endangered ecological communities (CEECs) in the Land Management Framework • developing a risk-based framework for responding to major climatic events. 3 Under the Land Management (Native Vegetation) Code, in certain circumstances, landholders are required to set aside areas for protection in ratios to the areas cleared. The ratio requirements for set asides are included in Parts 5 (Divisions 3 & 4) and 6 and Schedule 3 of the Code. 4 Equity clearing allows for paddock trees and associated ground cover under a certain scale to be cleared without approval. The Land Management (Native Vegetation) Code originally set a cap for clearing proposals but the cap expired 3 years after the Code was published. 23NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Government actions LLS is currently making improvements to the landholder guidance and administration of both Part 2, Division 2 (Invasive Native Species) and Part 3, Division 3 (Mosaic Thinning) of the Code. This includes reducing treatment areas for invasive native species by requiring area specificity and providing clear guidance as part of the invasiveness test by LLS officers, and improving environmental outcomes for mosaic thinning by establishing guidelines about the limits of tree canopy opening sizes, a process to improve the selection of retained area locations and requirements for managing those retained areas. To improve outcomes for CEECs, the NSW Government will appoint the Natural Resources Commission to provide advice on policy options to strengthen the management and protection of widespread CEECs under the Code, including considering mechanisms that support and incentivise landholders to protect, restore and improve CEECs. The government will also seek to improve the identification and mapping of CEECs, with LLS to provide further support to landholders. Finally, to address future risks due to a changing climate, LLS will work with relevant experts, such as the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) and the NSW Rural Fire Service, to develop a risk-based framework and associated tools and protocols that respond to a range of major climatic risks and underlying trends, and including major events such as bush fires, floods and biosecurity events. LLS will develop the framework in consultation with relevant agencies and it will be informed by engagement with key stakeholders. Reduce unallocated clearing Review findings The review found that high levels of unallocated clearing reduces public confidence in the Land Management Framework. While there have been efforts to allocate clearing activities, unallocated clearing of native grasslands, including derived native grasslands5 and other groundcover, remains high6, with 89% of all unallocated clearing occurring in groundcover-dominated landscapes with a history of agricultural grazing. The review identified 3 ways to reduce unallocated clearing and strengthen public understanding and confidence. These were: • better identification and mapping of native grasslands and other groundcover • staged release of the draft Native Vegetation Regulatory Map to help landholders understand categories of land on their properties, including measures for continuous improvement • better monitoring and reporting of Allowable Activities through satellite imagery and ground truthing, as part of a new Land Management Monitoring, Evaluation and Reporting Framework. Government actions The NSW Government recognises the limitations of remote sensing in accurately mapping native grasslands and other non-woody vegetation. The government will commission the Natural Resources Commission to undertake a review into policy options for improving outcomes for areas containing exclusively or predominantly non-woody vegetation (grasslands and ground cover). The objectives of the review will be to identify options to reduce unallocated clearing rates for non-woody vegetation, ensure 5 Derived native grassland refers to a ‘native grassland’ that remains after the removal or dieback of previous woody canopy vegetation (shrubs or trees). 6 Unallocated clearing refers to detected clearing that does not need approval, notification and/or keeping of records, cannot be explained or allocated to a particular land management activity, or is unlawful. 24 the protection of high-value native grasslands, and minimise overregulation of non-native non-woody vegetation and unrecoverable native non-woody vegetation. The government has released the draft Native Vegetation Regulatory Map and will prioritise finalising the map. The map will be continually improved by regular review of the outcomes of landholder triggered map reviews to understand trends in any mapping issues. LLS will continue to support landholders in understanding what categories of land they have on their properties. As part of the Land Management Monitoring, Evaluation and Reporting Framework, the government will implement a process to better identify and report on the use of Allowable Activities. The Minister for Agriculture will initiate an independent review, to be undertaken by the Natural Resources Commission with the support of an advisory panel, to provide the government with advice on options to further protect and restore biodiversity in regional landscapes and enhance value and support for landholders. Expand and support incentives for landholders Review findings Effective regulation requires collaboration and communication with stakeholders and should be supported by extension and education programs to promote voluntary compliance. The review found that landholders significantly value the extension and support services offered by LLS and recommended expanding and supporting incentives for landholders by: • continuing to strengthen education and extension services for landholders to support the Land Management Framework • expanding the delivery of incentives to landholders to retain and invest in natural capital • improving the Native Vegetation Panel support to landholders in avoiding and mitigating the impacts of clearing prior to using biodiversity offsets • better engaging with Aboriginal stakeholders and communities on Aboriginal cultural heritage, practices and connections to Country in the implementation of the Land Management Framework. Government actions LLS is a key delivery agency that has built trusted relationships with landholders and is already providing fee-free advice and guidance to landholders to support the Land Management Framework, including helping landholders use the Native Vegetation Regulatory Map and ensuring they understand their obligations in terms of Allowable Activities and other Code requirements. Extension services and incentives will need to regularly adapt to emerging opportunities, such as natural capital markets. The NSW Government will expand its advisory and extension services on property planning to integrate property-scale and regional-scale natural capital accounts to empower landholders to plan for, monitor and measure natural capital outcomes as part of business-as-usual. This will include connecting land managers with industry bodies and government agencies developing conservation and natural capital programs. This will help landholders see the value of natural capital actions on farm and enable them to access new markets requiring evidence-based environmental credentials. The NSW Government is exploring, in partnership with Aboriginal stakeholders, new and better ways to support Aboriginal people to connect with and care for Country. Aboriginal stakeholders will be invited to co-design any further regulatory changes that relate to cultural practices. 25NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Improve transparency and awareness of the Land Management Framework Review findings The review highlighted the need to improve transparency and awareness of the Land Management Framework through: • improving monitoring, evaluation and reporting on the outcomes of the Land Management Framework • net-change monitoring and reporting on woody vegetation loss and regrowth/revegetation on rural regulated land • working with local governments to reduce the risk of Allowable Activities being misused for non agricultural clearing. Government action Improved monitoring and reporting are needed so the NSW public has a better understanding of how native vegetation is being managed. The NSW Government will improve monitoring and reporting for rural regulated land by: • enhancing monitoring and reporting processes for woody vegetation loss and regrowth/revegetation (net change) • requiring landholder notification for woody native regrowth management under the Land Management (Native Vegetation) Code to improve visibility of where land cover change is resulting from regrowth • establishing a Land Management Monitoring, Evaluation and Reporting Framework, the development of which will be overseen by the Natural Resources Commission, including provision for continual improvement informed by data and evidence from the framework • reviewing compliance and enforcement powers and penalties for unlawful clearing • enhancing reporting on compliance and enforcement actions under the BC Act and LLS Act, such as response to Enviroline inquiries, warning letters, penalties and remediation orders. To support local governments’ understanding of the Land Management Framework, LLS is currently piloting an initiative within the Hunter Local Government Area in partnership with the DCCEEW’s compliance and enforcement group. This initiative will explore issues raised in the review of the potential misuse of Allowable Activities by development proponents prior to applying for approvals under planning legislation administered by local government. 26 Appendix A: Scope statement This response sets out the NSW Government’s priorities in relation to biodiversity matters regulated under the BC Act and the land management framework under the LLS Act, and their associated regulations and policies. The response has been developed in the context of a range of related but separate regulatory schemes and processes, including: • biodiversity matters dealt with under the Fisheries Management Act 1994 and Marine Estate Management Act 2014 • implementation of the Marine Estate Management Strategy • establishment of the Great Koala National Park • development of the Forest Industry Action Plan • delivery of the NSW Electricity Infrastructure Roadmap. The NSW Government aims to achieve strategic alignment between these complementary schemes and processes to support balanced and holistic outcomes. We will strive to deliver clarity, certainty and consistency across these matters, including regulatory compatibility and harmonisation where possible, to support the interests of regulated communities, investors, developers, land managers and other stakeholders. 27NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Appendix B: Summary of the NSW Government’s response to the recommendations Review of the Biodiversity Conservation Act 2016 Recommendation Government position Part 1: A new nature positive architecture for NSW Recommendation 1: Amend the Act to commit to an overarching object of ‘nature positive’, where biodiversity is protected, restored and improving, thereby ensuring the integrity of ecosystem services and cultural values, preserving opportunities for future generations. Within that overarching object, the Act should commit to: • halting and reversing biodiversity loss and ecosystem collapse • restoring threatened species and ecosystems, ensuring the ecological and evolutionary potential of species and employing a landscape-level focus to building resilience and adaptive capacity, especially with respect to climate change • zero human-induced extinctions of known threatened species • a standard of net gain in biodiversity. Support in principle Reflected in Action 1 (Amend and strengthen the Biodiversity Conservation Act 2016). 28 Recommendation Government position Recommendation 2: Amend the Act to require an independent body to undertake regular reviews (for example, every 5 years) to assess progress in achieving nature positive outcomes. The reviews should examine the extent to which other legislation is impacting the achievement of the objects of the Act, and be undertaken in consultation with the Biodiversity Conservation Advisory Panel and reported to the Minister for the Environment. The reviews should be made public, accompanied by a timely Ministerial response. Support To be pursued as part of Action 1 (Amend and strengthen the Biodiversity Conservation Act 2016). Recommendation 3: Tailored engagement with Aboriginal people and organisations should be a priority for Government when responding to this review report. Support Reflected in the opening statement regarding partnership with Aboriginal communities. Pillar 1: Nature positive strategy Recommendation 4: Amend the Act to require the Minister for the Environment, in consultation with the Biodiversity Conservation Advisory Panel, to develop and publish a Nature Positive Strategy. Support Reflected in Action 5 (Develop and implement the NSW Nature Strategy). Recommendation 5: The Act should establish processes for: • incorporating traditional Aboriginal culture and knowledge in developing and maintaining the Nature Positive Strategy • regular review and updating of the new Nature Positive Strategy • monitoring, evaluation and reporting on progress. Support Reflected in Action 5 (Develop and implement the NSW Nature Strategy). Recommendation 6: The Biodiversity Conservation Trust’s investment planning should be aligned with the principles of the Nature Positive Strategy. Support Reflected in Action 5 (Develop and implement the NSW Nature Strategy). Recommendation 7: Amend the Act to improve the administrative and operational efficiency of the Biodiversity Conservation Trust. This should include consideration of a new type of agreement that excludes incompatible activities. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme) and Action 15 (Expand private land conservation initiatives). 29NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendation Government position Pillar 2: Nature positive spatial tools Recommendation 8: Amend the Act to enable the development of a single spatial tool to ensure primacy of biodiversity considerations, support nature positive outcomes, and identify ‘no go’ areas. The tool should be made by the Minister for the Environment. For further consideration To be considered as part of Action 6 (Identify and map areas of high biodiversity value). Recommendation 9: The Act should establish processes for developing and maintaining the tool, including: • incorporating traditional Aboriginal ecological knowledge • public consultation on areas proposed for mapping • review and amendment of mapped areas. For further consideration To be considered as part of Action 6 (Identify and map areas of high biodiversity value). Recommendation 10: The draft Native Vegetation Regulatory Map should continue to be rolled out. It should inform the development of the proposed single spatial tool. Support Reflected in Action 17 (Deliver decision ready information and tools). Pillar 3: Nature positive development Recommendation 11: Amend the Act to set an objective for the Biodiversity Offsets Scheme to deliver a net positive biodiversity outcome and consider renaming the scheme to reflect this purpose. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Recommendation 12: Amend the Act to require a net gain for biodiversity by setting credit obligations for all development and clearing assessed through the Biodiversity Offsets Scheme at, say, 120% of calculated biodiversity loss. Support in principle Recommendation 13: Amend the Act to give the Minister for the Environment a call-in power to determine if a proposal for local development, or clearing requiring consideration by the Native Vegetation Panel under the Local Land Services Act 2013 or under the State Environmental Planning Policy (Biodiversity and Conservation) 2021 (Biodiversity and Conservation SEPP) would give rise to a serious and irreversible impact. For further consideration 30 Recommendation Government position Recommendation 14: Amend the Act to give the Minister for the Environment a call-in power for major projects in determining a serious and irreversible impact and a concurrence role in determining if that impact should be approved. For further consideration Recommendation 15: Set a requirement in the Act to publish reasons for approving serious and irreversible impacts and maintain a statutory register of these decisions. All areas over which the Minister for the Environment considers a project would cause a serious and irreversible impact should be added to the single spatial tool as a ‘no go’ area. Support in principle Reflected in Action 11 (Increase efficiency and transparency of the Biodiversity Offsets Scheme). Recommendation 16: For local development: • remove the test of significance pathway, as it results in inconsistent regulation of impacts • explore ways to adjust the area thresholds and Biodiversity Values Map thresholds to better balance the regulatory burden for small developments with appropriate outcomes for biodiversity • consider how best discretion is provided for and applied by the Minister for the Environment to switch off the Biodiversity Offsets Scheme for local development in exceptional circumstances. Support in principle Reflected in Action 12 (Better balance the application of the Biodiversity Offsets Scheme with biodiversity risks). Recommendation 17: Provide consent authorities with a clear power to retrospectively apply the Biodiversity Offsets Scheme to a development application if there has been pre-emptive clearing under a clearing entitlement to avoid the scheme applying. Support To be considered as part of Action 1 (Amend and strengthen the Biodiversity Conservation Act 2016). Recommendation 18: Require proponents of Part 5 activities under the Environmental Planning and Assessment Act 1979 to apply the Biodiversity Offsets Scheme if their proposed activity has impacts above the area threshold or affects land identified on the Biodiversity Values Map. For further consideration 31NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendation Government position Recommendation 19: Simplify the rules and apply the Biodiversity Values Map and area clearing thresholds consistently to all development and clearing on non rural land. Support in principle Reflected in Action 12 (Better balance the application of the Biodiversity Offsets Scheme with biodiversity risks). Recommendation 20: Amend the Act to require biodiversity certification when land is rezoned for development where expected impacts trigger the area clearing thresholds or the Biodiversity Values Map. For further consideration Recommendation 21: Review the biodiversity certification process to address barriers and improve transparency and confidence in the outcomes it delivers. Support Reflected in Action 8 (Improve bio certification to drive better strategic land use planning outcomes). Recommendation 22: Amend the Act to require a standard of genuine and demonstrable steps to avoid and minimise impacts. This may include consideration of how avoided land will be managed and maintained into the future. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Recommendation 23: Provide clearer guidance on the requirements to avoid and minimise impacts to biodiversity from development. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Recommendation 24: Require that steps taken to avoid and minimise impacts are included in conditions of consent and published. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Recommendation 25: Record avoided land on the statutory register and identify as ‘no go’ areas in the single spatial tool. For further consideration Recommendation 26: Amend the Act to give the Minister for the Environment sole discretion to discount biodiversity credit requirements. Support in principle Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). 32 Recommendation Government position Recommendation 27: For certain government priority projects that give primacy to the environment: • amend the Biodiversity Conservation Regulation 2017 to provide an option to enter an agreement with the Minister for the Environment to deliver an offset obligation in a way that provides certainty for biodiversity conservation, is aligned with a regional offset investment plan, delivers on-ground actions and generates credits on a like-for-like basis through entry into Biodiversity Stewardship Agreements, acquisition of land and conservation measures • require the Minister for the Environment to publish details of any such decision and publicly report on the outcomes achieved Support in principle Reflected in Action 11 (Increase efficiency and transparency of the Biodiversity Offsets Scheme). Recommendation 28: Continue to invest in the Biodiversity Credits Supply Fund to accelerate the supply of in-demand credits and support development of the credit market. Support Reflected in Action 10 (Support a functioning biodiversity credit market). Recommendation 29: Amend the Act to require proponents to demonstrate they have undertaken genuine and demonstrable steps to find like-for-like credits before allowing payment into the Biodiversity Conservation Fund. Support in principle Reflected in Action 10 (Support a functioning biodiversity credit market). Recommendation 30: Amend the Act to allow the Environment Agency Head to publish a list of credit types from time to time and subject to transparent criteria for which payment into the Biodiversity Conservation Fund is not permitted because the credits are readily available on the market. Support in principle Reflected in Action 10 (Support a functioning biodiversity credit market). Recommendation 31: Require the Biodiversity Conservation Trust to acquit obligations that are paid into the Biodiversity Conservation Fund within a set time period. If the time period is not met, require the Trust to publish reasons and a plan for using the funds, consistent with the Nature Positive Strategy and areas of high biodiversity values identified in the single spatial tool. The plan should be approved by the Minister for the Environment. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). 33NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendation Government position Recommendation 32: Review the like-for-like credit rules to identify if they can be simplified to support effective operation of the market without compromising biodiversity outcomes. Support Reflected in Action 10 (Support a functioning biodiversity credit market). Recommendation 33: Amend the Regulation to remove the option to meet a credit obligation through a commitment to ecological mine site rehabilitation. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Recommendation 34: Set a requirement in the Act for the Environment Agency Head to maintain a public register of biodiversity credit obligations and how credit obligations are met. Support Reflected in Action 11 (Increase efficiency and transparency of the Biodiversity Offsets Scheme). Recommendation 35: Set a requirement in the Act that relevant decision makers must provide the information required for any new statutory registers created, such as for credit obligations, avoided lands and projects with serious and irreversible impacts. Provide support and guidance to local councils and other decision-makers to meet this reporting requirement. Support To be considered as part of Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme) and Action 11 (Increase efficiency and transparency of the Biodiversity Offsets Scheme). Recommendation 36: Develop fit for purpose digital systems that allow for consistent, real time and automated information collection for all statutory registers. Support Reflected in Action 11 (Increase efficiency and transparency of the Biodiversity Offsets Scheme). Recommendation 37: Provide greater incentives, including increased credit yield, to: • encourage active restoration of degraded ecosystems and the reintroduction of species at biodiversity stewardship sites • encourage the protection of areas of strategic biodiversity values, such as those that provide habitat connectivity and landscape resilience. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme) and Action 10 (Support a functioning biodiversity credit market). Recommendation 38: Amend the Act to provide the Biodiversity Conservation Trust with power to require landholders to commence active management of biodiversity stewardship sites. Support in principle To be considered as part of Action 1 (Amend and strengthen the Biodiversity Conservation Act 2016). 34 Recommendation Government position Recommendation 39: Review the additionality provisions of the Act, Regulation and Biodiversity Assessment Method. Consider allowing all land types to participate in the supply of credits, subject to strict application of transparent additionality principles. If public lands are used to generate credits, require independent review of the outcomes achieved, with public reporting. For further consideration Recommendation 40: Amend the Act to increase administrative efficiencies and optimise management of the Biodiversity Stewardship Payments Fund. This may include allowing the Biodiversity Stewardships Payments Fund to be managed as a single fund with subaccounts. Support Reflected in Action 9 (Improve biodiversity outcomes from the Biodiversity Offsets Scheme). Pillar 4: Species and ecosystem recovery Recommendation 41: Amend the Act to ensure the Biodiversity Conservation Program is focused on halting and reversing biodiversity loss and ecosystem collapse, restoring threatened species and ecosystems, and zero human-induced extinctions of known threatened species. Support Reflected in Action 13 (Improve species and ecosystem programs). Recommendation 42: Amend the Act to require the Department of Planning and Environment to measure and publicly report on the status and trajectory of each species and ecological community, every five years. Support Reflected in Action 13 (Improve species and ecosystem programs). Recommendation 43: As part of the Nature Positive Strategy, the Department of Planning and Environment should publish a statement every 5 years detailing how listed key threatening processes are being addressed. Support Reflected in Action 13 (Improve species and ecosystem programs). Recommendation 44: The Department of Planning and Environment should undertake rapid assessments on behalf of the Threatened Species Scientific Committee and advise on priorities for assessment, without compromising the independence of the committee. Support Reflected in Action 14 (Coordinate our approach to listing threatened species and ecological communities). 35NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendation Government position Recommendation 45: Examine the administrative arrangements and legislative provisions relating to wildlife use, rescue and rehabilitation to ensure a robust framework. Support The Government has already announced a review and consultation to consider options to address issues facing the wildlife care and rehabilitation sector. Recommendation 46: Consider the approach to funding accredited wildlife hospitals and reimbursing veterinary practices for costs incurred in treating injured wildlife. Support The Government has already announced a review and consultation to consider options to address issues facing the wildlife care and rehabilitation sector. Pillar 5: Data-informed decision-making Recommendation 47: Charge the Environment Agency Head (EAH) with responsibility for the collection and management of environmental data to ensure agreed reporting standards and definitions (i.e. a single source of truth). Support in principle Reflected in Action 18 (Improve data quality, accessibility, sharing and custodianship). Recommendation 48: Require other agencies to meet the Department of Planning and Environment’s requests for biodiversity data, in a timely fashion and in a format determined by the Department. Support in principle Reflected in Action 18 (Improve data quality, accessibility, sharing and custodianship). Recommendation 49: Invest in contemporary, reliable and decision-ready information systems that enable the capture, storage, management, interrogation and translation of data to inform reporting on biodiversity at landscape scale in real time. Support Reflected in Action 16 (Improve and upgrade biodiversity data gathering and management). Recommendation 50: Invest in the development of a comprehensive set of natural capital accounts for NSW, suitably regionally disaggregated, that provide science-based natural capital baselines, and report changes in natural capital over time. Support Reflected in Action 19 (Establish and pilot a natural capital accounting framework). 36 Recommendation Government position Pillar 6: Leveraging private investment Recommendation 51: Continue to explore the role that government might play in driving the development of natural capital markets. Support Reflected in Action 22 (Support growth of robust natural capital markets). Recommendation 52: Facilitate the investigation and development of instruments and methods that overcome barriers to participating in emerging nature markets and valuing and investing in natural capital. Support Reflected in Actions 20 (Build landholder capability to embed practice change and boost participation), Action 21 (Diversity and expand access to conservation and natural capital investments) and Action 22 (Support growth of robust natural capital markets). Recommendation 53: Consider opportunities for, and resolve obstacles to, landholders establishing multiple credit types on a parcel of land. Support in principle To be considered as part of Action 1 (Amend and strengthen the Biodiversity Conservation Act 2016). Recommendation 54: Review incentives for private sector investment and other mechanisms to support private and public land restoration and conservation investment and outcomes. Support Reflected in Action 22 (Support growth of robust natural capital markets). Intersections with other Acts Recommendation 55: Consider whether the current institutional arrangements could be improved to ensure environmental considerations have the primacy required for achieving a nature positive outcome. For further consideration Recommendation 56: Consider legislative reform to align relevant Acts with a nature positive outcome. Support Reflected in Action 3 (Review relevant legislation to strengthen biodiversity outcomes). Recommendation 57: Mandate reporting requirements for public authorities to demonstrate progress towards nature positive. Support in principle Reflected in Action 4 (Report on government biodiversity impacts and outcomes). 37NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendation Government position Recommendation 58: Consider including a legislative amendment allowing remediation orders to be registered on title to improve remediation outcomes by passing the remediation obligations to future owners. Support To be considered as part of Improve transparency and awareness of the Land Management in Part B (Local Land Services Act Review). Support or support in principle 49 For further consideration 9 38 Review of the native vegetation provisions of the Local Land Services Act 2013 Recommendations Government position Improve management of identified environmental risks 2.1 Improve administration and outcomes of authorisations to manage environmental risk and reduce the cleared area for: a. Invasive Native Species (INS) by developing a protocol for treatment area specificity for Part 2, Division 2 as well as a landholder guide for assessing whether INS are acting invasively (under Part 2, Division 1 of the Code). b. Mosaic thinning by establishing limits on tree canopy opening sizes and processes for improved location, selection and documentation of retained areas, and requirements for these areas. Supported 2.2 Strengthen protections for Critically Endangered Ecological Communities (CEECs) in the Land Management Framework by: a. Department of Planning and Environment to improve identification and mapping of CEECs, with further support provided by LLS for landholders to strengthen on-ground management of CEECs. b. Amending the Land Management (Native Vegetation) Code to enable a condition assessment, where agreed by the Minister for Agriculture and the Minister for the Environment, to permit use of the Code only on non viable CEECs and restrict use of Allowable Activities on viable CEECs. Supported, with variation To improve outcomes for CEECs, the NSW Government will appoint the Natural Resources Commission to provide advice on policy options to strengthen the management and protection of widespread CEECs under the Code, including considering mechanisms that support and incentivise landholders to protect, restore and improve CEECs. 2.3 Develop a risk-based framework, that is approved by the Minister for Agriculture and the Minister for the Environment, to respond to major climatic events (e.g., wildfires, floods, biosecurity events). Supported 39NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendations Government position Reduce unallocated clearing 3.1 Reduce unallocated clearing through better identification of native grasslands / non-woody vegetation: a. Introduce interim requirements for landholder self assessments of native grasslands / non-woody vegetation to be reported to LLS b. The Minister for Agriculture and the Minister for the Environment jointly appoint an independent body or expert panel to: i) review the process and method to identify and monitor annual landcover change on rural regulated land, particularly for native grasslands and other non-woody vegetation ii) review how unallocated clearing of non-woody vegetation is defined and classified iii) advise on improvements to the method used to identify and map native dominated non-woody vegetation iv) consult with LLS and the Department of Planning and Environment to inform the review. Supported, with variation The government will commission the Natural Resources Commission to undertake a review into policy options for improving outcomes for areas containing exclusively, or predominantly, non-woody vegetation (grasslands and ground cover). The objectives of the review will be to identify options to: reduce unallocated clearing rates for non-woody vegetation, ensure protection of high-value native grasslands, and minimise overregulation of non-native non-woody vegetation and unrecoverable native non-woody vegetation. 3.2 Staged release of the draft Native Vegetation Regulatory Map state-wide to help landholders understand the categories of land on their properties and to better allocate native vegetation management activities, including measures for continuous improvement: a. LLS supporting landholders in understanding what categories of land they have on their properties, to help with the allocation of native vegetation management activities, particularly for grasslands / non-woody vegetation. b. Improving the Map’s accuracy through landholder triggered Map reviews undertaken by the Department of Planning and Environment, in conjunction with independent annual reviews of the map and improvements to mapping of grasslands / non-woody vegetation (see Recommendation 3.1b). Supported 40 Recommendations Government position 3.3 Better monitoring and reporting of Allowable Activities through satellite imagery and ground truthing, as part of the Monitoring Evaluation and Reporting Framework (see Recommendation 5.1). Supported Expand support and incentives for landholders 4.1 Continue to strengthen education and extension for landholders to support the Land Management Framework, including: a. Helping landholders to understand the Native Vegetation Regulatory Map categories and relevant rules on their property (see Recommendation 3.2). b. Strengthening communication, extension and compliance activities on the use of Allowable Activities to ensure they are used for ‘routine’ practices and ‘to the minimum extent necessary’. Supported 4.2 Expand delivery of incentives to landholders to retain and enhance native vegetation through a nature positive approach with increased access to environmental markets, including through natural capital funding, development of on-farm and regional natural capital accounts, and a whole-farm planning landscape stewardship initiative. Supported 4.3 Improve processes and guidance available to the Native Vegetation Panel to support landholders in avoiding and mitigating the impacts of clearing prior to using biodiversity offsets (e.g., set-asides, replanting) – this should include linkages with Natural Resource Management plans in LLS regions. Supported 4.4 LLS engage with Aboriginal stakeholders and communities to support Aboriginal cultural heritage, practices and connections to Country throughout the provisions and implementation of the Land Management Framework. Supported 41NSW Government response to the reviews of the BC Act and native vegetation provisions of the LLS Act Recommendations Government position Enhance transparency and awareness of the Land Management Framework 5.1 Increase public transparency and reporting of the Land Management Framework by: a. Appointing the Natural Resources Commission to oversee the establishment of a LLS developed Land Management Monitoring, Evaluation and Reporting Framework that includes regular and ongoing reporting on the outcomes of the Land Management Framework. b. Department of Planning and Environment to report on a range of compliance and enforcement actions (including penalties, warning letters, response to Enviroline inquiries). Supported 5.2 Establish monitoring and an annual reporting process for woody vegetation loss and regrowth/ revegetation (net change) on rural regulated land, with oversight by an independent body or expert panel (see Recommendation 3.1b) and in consultation with LLS and the Department of Planning and Environment. Supported 5.3 LLS improve engagement with local government on the Land Management Framework to reduce the risk of misusing Allowable Activities for non agricultural clearing (this risk will also be reduced by implementing Recommendation 4.1b). Supported 42 The Cabinet Office CS1386 Contact us T 02 9228 5555 W nsw.gov.au/the-cabinet-office Copyright © State of New South Wales 2024 [The Cabinet Office] Unless otherwise stated, the contents of this publication are licensed under the Creative Commons Attribution 4.0 Licence, except as noted below. Terms and conditions of the licence can be viewed at https:// creativecommons.org/licenses/by/4.0/legalcode. 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