Environmental offsets

The Environmental Protection Authority has released, for public

comment, its Preliminary Position Statement No. 9 regarding

environmental offsets.

The concept of offsets, as a tool for attenuating impacts of development or for mitigating previous impacts, is not new in Western Australia, although it is fair to say the principles and expectations have tended to be a mystery.

To that end, the EPA’s position statement, which sets out the principles for determining the need, and the extent of environmental offsets required, should be embraced.

The principles, which will be applied when determining a case for environmental offsets should achieve the following:

• A ‘net environmental benefit’;

• Be like for like or better;

• Positive environmental offsets will be required, where critical assets are adversely impacted or there is a risk of failure; and

• Environmental offset projects themselves should be assessed and approved under the existing statutory framework.

It is intended that the environmental offsets principles will eventually form part of the suite of environmental policy, developed by the EPA, that guides government agencies in considering environmental matters when exercising decision making powers within the existing statutory and regulatory framework.

While there may be some conflicting ideologies in the position statement there are many benefits in the implementation of this policy, not the least of which is eliminating perceptions that offsets arise as a way of ‘buying’ environmental approval.

Environmental offsets may ultimately ensure better environmental outcomes, greater flexibility and ingenuity in the design of a project.

Proponents considering the development of offsets, particularly those offset proposals including sequestration (geological or organic), credit trading, and banking, should be aware of the regulatory and management risks involved and ensure those risks are minimised in the offset planning and documentation phase of the project.

They will also need to ensure that there is sufficient flexibility within the offset proposal to accommodate the implementation of climate change law at a national or international level in the future.

Gretta Lee 9429 7606  Minter Ellison