1. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Marianne Darbi, IÖR Dresden TOP Biodiversity Conference, 3-4 June 2010, Larnaca Biodiversity Offsets A tool for Environmental Management and Biodiversity Conservation 1/27

2. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Outline 1.Background 2.Characteristics of Biodiversity Offsets 3.Kinds of Biodiversity Offsets a) Mandatory b) Voluntary 4.Criticism 5.Potentials 6.Conclusion 2/27

3. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 1. Background 3/27

4. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 1. Land Use Change and Land Take Urban sprawl and settlement Intensification of agriculture and abandonment of traditional land management forms Infrastructure 2. Emission of pollutants e.g. increased use of pesticides and fertilizers 3.Overexploitation: Tourism Forestry Fisheries 4.Invasive Species 5.Climate Change and Greenhouse Gas Emission Driving Forces for ongoing Biodiversity Loss 4/27

5. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Need to restore Biodiversity 5/27 blabla Global Biodiversity Outlook 2006: Increasing pressure on Species and Habitats Biodiversity Loss Value of Biodiversity for Human Wellbeing: Economy and Society depend on nature and landscape Mankind depends on products and services that Biodiversity provides Beside conservation and sustainable use of biodiversity RESTORATION is a key principle to stop biodiversity decline.

6. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 2. Characteristics of Biodiversity Offsets 6/27

7. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca What are Biodiversity Offsets? 7/27 “Biodiversity Offsets are conservation activities intended to compensate for the residual, unavoidable harm to biodiversity caused by development projects” ten Kate et al. 2004 “Biodiversity offsets seek to ensure that unavoidable adverse environmental impacts of development are counterbalanced by environmental gains” Escorcio Bezerra 2006 Biodiversity = Variety of species and ecosystems as well as genetic diversity Polluter pays principle

8. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Mitigation Hierarchy 8/27 Follow subsequent steps: Step 1: avoid or prevent negative impacts on biodiversity Step 2: address unavoidable impacts through minimization and rehabilitation measures Step 3: establish compensation measures („Biodiversity Offsets“) as a last resort for residual adverse impacts: restitution or compensation payment

9. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Functional and Spatial Equivalence 9/27 spatial characteristics: functional characteristics: On On-Site Compensation Off Off-Site Compensation In In- Kind Compensation Out of Out of- Kind Compensation

10. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Problem of Time Lag:  Aggregated Offsets: provision or concentration of compensation areas and measures Problem of Sustainability  Monitoring and Follow Up to assure the effectiveness and long-term success of Biodiversity Offsets Timing and Aggregated Offsets 10/27 Full Compensation Restoration Residual Impact Impact

11. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Mandatory Biodiversity Offsets Voluntary Biodiversity Offsets 3. Kinds of Biodiversity Offsets 11/2 7

12. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Mandatory Biodiversity Offsets 12/27 Environmental Impact Assessment German Impact Mitigation Regulation US Wetland Mitigation Banking

13. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca German Impact Mitigation Regulation 13/27 Impact Mitigation Regulation (“Eingriffsregelung”) is the major landscape conservation instrument to address mitigation and compensation for impacts from developments and projects in Germany: entered into force as part of the Federal Nature Conservation Act 1976 comprehensive approach (for all impacts, on all scales, not restricted to specific areas) 2002 and 2009 amendments to the Federal Nature Conservation Act: loosening of spatial and functional connection between impact and compensation compensation pools: provision and bundling of compensation sites and measures

14. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Voluntary Biodiversity Offsets 14/27 In contrast to Mandatory Biodiversity Offsets, Voluntary Biodiversity Offsets are implemented without prior obligation, in response to the growing public pressure on corporations and governments to demonstrate that they are addressing the environmental impacts of their activities.

15. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca The business case for Biodiversity Offsets 15/27 License to operate Access to land and resources, acceleration of licensing procedures, avoidance of costly delays, influence on emerging environmental regulation and policy ReputationGood PR, enhanced reputation and „social license to operate“, better relationship with local communities, governmental regulators, environmental groups and other stakeholders Access to capital Higher standards of international financial and funding institutions EfficiencyManagement of social and environmental risks and liabilities New marketsCompetitive advantage as „First mover“

16. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Business and Biodiversity Offset Program 16/27 Partnership of: companies, scientists, NGOs, government agencies, research institutes and financial institutions Focus on: compensation for impacts on biodiversity Aim to: mainstream concept of „No Net Loss“ of biodiversity into development projects Results of Phase 1 (2004-2009): Biodiversity Offset handbooks Website: http://bbop.forest-trends.org

17. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 4. Criticism of Biodiversity Offsets 17/27

18. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca License to trash 18/27 When is an offset appropriate? Distinguish between offsettable and not offsettable impacts Criteria: irreplaceability, vulnerability etc. Need to define thresholds

19. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca How to ensure equivalence between impact and offset? Problem to measure and value biodiversity Different „currencies“ Indirect and cumulative impacts  Multitude of existing evaluation and balancing methods Comparing apples and oranges 19/27

20. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca How long lasts perpetuity? 20/27 Duration of impacts vs. Duration of offsets Short and long-term impacts Temporary and permanent impacts Criteria: reversitbility, feasibility etc. In practice different timeframes are applied  Biodiversity Offsets should last as long as the impairment persists  need for Follow Up

21. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Shift of responsibility 21/27 What are the physical and financial compensation means used for? Negative use: MERE use for the management and maintenance of existing protected areas  Biodiversity Offsets should not replace Conservation and other obligations of governmental bodies (Nature Conservation Authorities etc.)

22. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 5. Potentials of Biodiversity Offsets 22/2 7

23. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Trading up 23/27 Preference for „in kind“ offsetting However sometimes not feasible or not effective  Trading up: substituting a less valuable asset by an asset that is more valuable in terms of either its quality or quantity

24. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Landscape Level Planning and Green Networks 24/27 Small sites can require a disproportionate effort of management and sometimes not prove to be efffective Landscape and habitat pattern  Advantages of Aggregated Offsets and Banking: Compensation Pools and Mitigation Banks are effective instruments to implement Biodiversity Offsets with a minimum of land consumption, bureaucracy and costs and a maximum of nature conservation value

25. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca 6. Conclusion 25/2 7

26. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca What is the role of Biodiversity Offsets in the future? 26/27 Business/MarketRegulation/Government People/Society Biodiversity Offsets

27. Biodiversity Offsets – a tool for Environmental Management and Biodiversity Conservation IÖR Dresden, Germany, Marianne Darbi, TOP Biodiversity Conference, 3-4 June, Larnaca Thank you for your attention! Leibniz Institute of Ecological and Regional DevelopmentMarianne Darbi Weberplatz 1Fon: 0049 351 463 42356 01217 DresdenFax :0049 351 4679 212 www.ioer.deE-Mail: M.Darbi@ioer.deM.Darbi@ioer.de 27/27 What would you do with this? And with this?