Nature Repair Market Bill 2023

The majority voted in favour of a motion "That the amendments be agreed to." This means that the amended bill has now been passed in both houses of parliament and so can be made into law.

What were the Senate amendments?

(1) Clause 1, page 1 (line 16), omit “ Market ”.

(2) Page 4 (line 21) to page 245 (line 16), omit “Nature Repair Market Committee” (wherever occurring), substitute “Nature Repair Committee”.

(3) Clause 7, page 11 (after line 8), after the definition of engage in conduct , insert:

environmental offsetting measure includes, but is not limited to, a measure to offset or compensate for the impacts of an action or project (however described) on the environment that is:

(a) required as a condition of an approval, licence or permit (however described) under a law of the Commonwealth, a State or a Territory; or

(b) directly financed from a fund into which money is paid as a condition of an environmental approval, licence or permit (however described) under a law of the Commonwealth, a State or a Territory; or

(c) undertaken as required or agreed to under a penalty or enforceable undertaking imposed or accepted under a law of the Commonwealth, a State or a Territory.

(4) Clause 7, page 11 (lines 9 to 13), omit the definition of environmental offsetting purpose , substitute:

environmental offsetting purpose means the purpose of meeting an environmental offsetting requirement (however described) under a law of the Commonwealth, a State or a Territory including through an environmental offsetting measure.

(5) Clause 68, page 95 (lines 18 to 20), omit subclause (1A).

(6) Clause 70, page 97 (lines 2 to 8), omit subclause (3), substitute:

(3) A biodiversity certificate must set out such matters (if any) as are specified in the rules.

(7) Clause 70B, page 97 (line 25) to page 98 (line 13), omit the clause.

(8) Clause 71, page 98 (line 20), omit “or 70B”.

(9) Clause 76A, page 100 (lines 16 to 22), omit the clause, substitute:

76A Biodiversity certificates not to be used for environmental offsetting purpose

(1) A biodiversity certificate must not be used for an environmental offsetting purpose.

(2) This section has effect despite any other provision of this Act or any other law of the Commonwealth, or a State or Territory.

(3) To avoid doubt, section 225 (Concurrent operation of State and Territory laws) does not apply to this section.

(10) Clause 164, page 187 (lines 12 to 22), omit paragraphs (1)(da) and (db).

(11) Clause 212, page 234 (lines 20 and 21), omit paragraph (fa).

What does the bill do?

According to the bills digest summary:

• The Nature Repair Market Bill 2023 (NRM Bill) seeks to establish the legislative framework for a voluntary national market in biodiversity certificates. The market would enable project proponents to undertake – on a range of land tenures, including in aquatic environments and the ocean to the extent of Australia’s territorial sea (generally, 12 nautical miles from the coast) – projects that protect or enhance biodiversity. The project proponent would be able to apply to the Clean Energy Regulator for a unique biodiversity certificate that could then be sold to interested persons in the market.
• The NRM Bill is framework legislation, with significant elements of the scheme to be provided in a series of legislative instruments to be made by the Minister, including rules, biodiversity assessment instruments and methodology determinations.
• The Nature Repair Market (Consequential Amendments) Bill 2023 makes minor amendments to the Clean Energy Regulator Act 2011 and National Greenhouse and Energy Reporting Act 2007 to facilitate operation of the proposed scheme.
• The Bills indirectly respond to two key reports and reviews relating to the state of Australia’s biodiversity, the State of the Environment Report 2021 and the Independent Review of the Environment Protection and Biodiversity Conservation Act 1999 (Samuel Review). These highlight the deteriorating state of terrestrial and marine biodiversity and the failure of our national environmental law to adequately protect Australia’s biodiversity and iconic places.
• Over 400 submissions were made to 2 rounds of consultation undertaken by the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
• A review of submissions indicates stakeholder views’ range from cautiously optimistic – largely in recognition of the urgent need to increase investment in the protection and enhancement of biodiversity – to highly critical of a broad range of policy and technical issues. Chief among these are concerns about market-led commodification of nature and the integration of the proposed market with the still-to-be-implemented reform of Australia’s national environmental laws. A large number of submitters were of the view that the Bills should not progress until those reforms are finalised.