Reform to Queensland’s Environmental Offsets Framework

Queensland uses an environmental offsets framework to counterbalance unavoidable environmental impacts from development at one site by enhancing and protecting environmental values at another. 

On 2 October 2020, the Queensland Government released a Consultation and Response Report on its review of Queensland’s Environmental Offsets Framework (Report). The Report combines the results of 23 meetings, 8 sector-specific workshops, 118 written submissions from stakeholder and community consultation undertaken in 2019 and outlines two stages of response.

In this alert, Partner, Sarah Macounand Solicitor, Kate Thorogood review the results of the Report and outline the Queensland Government's two stage response.

Review results

According to the Report there is widespread support for the continued use of environmental offsets in Queensland. There is also consensus across all stakeholder groups that reforms are needed. There is widespread support for better alignment with the Commonwealth Government’s offsets framework, improved guidance on how to deliver an offset condition and greater identification of suitable areas for offset delivery.

Feedback indicated that the interaction between matters of national environmental significance, matters of state significance and matters of local environmental significance is confusing and may prevent some impacts from being counterbalanced. 

The Report identifies that the feedback received helped develop five guiding principles for reform: 

  1. optimise environmental outcomes;
  2. deliver offsets in a timely manner;
  3. strengthen partnerships with First Nations peoples, governments and land managers;
  4. lead the establishment of a market for environmental offsets; and
  5. support ecologically sustainable development in Queensland.

Two stages of response 

The Queensland Government has scheduled two stages of response to the feedback. 

Stage 1 

Stage 1 is due to be delivered by 31 December 2020 and involves non-regulatory improvements to the framework that do not increase costs for business and industry. These improvements are detailed below.

Stage 2 

Stage 2 is due to commence in early 2021 and will involve working with a multisector reference group to guide potential reforms to the environmental offsets framework. In early 2022, a Regulatory Impact Statement, prepared in partnership with the reference group, is to be released for broad consultation with the community prior to any amendment of the environmental offsets framework being progressed. Stage 2 must be completed before the expiry of the Environmental Offsets Regulation and Policy on 1 September 2024.  

Fifteen areas of reform

The staged response focuses on 15 key areas of reform, which are set out in the table below:

Area for reform

Stage

Environmental outcomes

Increase the supply of land for offsets

1 and 2

Streamline offset delivery processes

2

Improve monitoring, adaptive management and compliance

2

Prevent unachievable offset conditions

2

Clarify the scope of the framework

2

Alignment with best practice

Identify and deliver offsets in strategic locations

1 and 2

Align the offsets framework with conservation priorities

2

Align the framework with best practice principles for environmental offsets

2

How we measure offsets

Make it easier to do business with the Queensland Government

1 and 2

Consolidate requirements and clarify core terms

2

Maintain the value of offset funds over time

2

Security and transparency

Simplify requirements for legal security

2

Establish the foundations for an offsets market

2

Offset opportunities

Build and support relationships with First Nations people

2

Encourage delivery of co-benefits

2

Stage 1 response

The Stage 1 response involves implementing the following:

  1. Increase the supply of land for offsets 

In response to feedback from landholders that they want to be able to register their interest prior to or instead of a declaration of an advanced offset, the Queensland Government will create an online form and register for interested landholders. The Queensland Government will also continue to work with local government and land managers to increase advanced offset registration, targeting areas for koala habitat within South East Queensland.

  1. Identify and deliver offsets in strategic locations 

In response to feedback that the currently identified Strategic Offset Investment Corridors (SOICs) are not adequately meeting demand for offset sites the Queensland Government will do two things:

  1. develop an integrated and coordinated approach for koala offsets in SEQ that aligns with the SEQ Koala Conservation Strategy; and
  2. establish the Aquatic Ecosystems Rehabilitation and Research Working Group to progress development of a Strategic Investment Plan for the restoration, offsetting, and identification of research gaps for wetlands and aquatic ecosystems in Queensland.
  3. Make it easier to do business with the Queensland Government 

In response to feedback that the guidelines on how to deliver an environmental offset need to be improved, the Queensland Government will publish guidance material for landholders, developers and local governments to assist with understanding and applying the environmental offsets framework. The first material to be published will be guidance on the implementation of the South East Queensland Koala Conservation Strategy 2020-25.

HopgoodGanim’s Environment team has a keen interest in environmental offset policy and assists a range of stakeholders in this area. We will continue to monitor the progress of the reform to Queensland’s environmental offsets framework and will provide updates when they become available. 

For more information and discussion, please contact our Environment team.