Biodiversity Credits Supply Fund

About the Supply Fund

The Supply Fund buys credits based on demand from development and infrastructure projects. Credits are then sold to public or private sector proponents who need credits to offset the biodiversity impacts of their projects, or other buyers who may seek credits for philanthropic or strategic purposes.

The Supply Fund is operated by the Department of Climate Change, Energy, the Environment and Water with the aim of making credits easier to sell and buy, improving the functioning of the biodiversity market. The department will apply fair, transparent and ethical processes and decision-making when buying and selling credits through the Supply Fund.

Biodiversity credits are generated through Biodiversity Stewardship Agreements. The sale of credits provides funding for landholders to improve the management of pests, weeds and fire and restore habitat. To generate credits, you can use our Stewardship Expression of Interest (EOI).

Operating Protocol

The Operating Protocol document sets out how the Supply Fund operates. It covers governance, ways to identify demand and supply, methods for buying and selling credits, and monitoring and reporting.

Download: Biodiversity Credits Supply Fund – Operating Protocol

Supply Fund market update

The Supply Fund market update covers key outcomes from the Supply Fund's reverse auctions to date, how auctions are run, the Supply Fund's role in the market, and information on credits approved for purchase by the Supply Fund. This is part of regular reporting to support development of the biodiversity credits market and promote understanding of the Supply Fund.

Download: Biodiversity Credits Supply Fund market update

Reverse auction – now open

Reverse auctions are used to buy credits on a competitive basis through the Supply Fund. Bids for the current reverse auction open on Wednesday 21 February 2024 and close on 5 pm Wednesday 6 March 2024.

The reverse auction seeks to buy credits that are on the target list (see the participant's guide, attachment B) from:

• current credit owners who:
  • own biodiversity credits created under the current Biodiversity Offsets Scheme (Biodiversity Assessment Method credits)
  • own biodiversity credits created under the former BioBanking Scheme (Biobanking Assessment Method credits) and hold, or have made an application for, a Statement of Reasonable Credit Equivalence
• prospective credit owners who:
  • have made an application for a Biodiversity Stewardship Agreement, or application to vary a Biodiversity Stewardship Agreement or Biobanking Agreement
  • provide a site assessment report completed by an accredited assessor documenting the credit types present and the area in hectares on which these credits are proposed to be created.

To make a bid to sell credits through this reverse auction, request a participant's guide and bid form.

Request participant's guide and bid form

If this button does not work for you, please request the participant's guide and bid form directly via SupplyFund@environment.nsw.gov.au

To receive the participant's guide and bid form immediately, please type 'Request for participant's guide and bid form information pack' in the subject line of your email.

A webinar on the reverse auction will be held on Monday 26 February 2024, from AEDT 2:00 pm to 3:00 pm. A recording will be made available for those unable to attend.

Register for the reverse auction webinar

October 2023 reverse auction results

The auction closed on 1 November and received 75 bids covering more than 116,000 credits.

Bids were evaluated in accordance with the published auction documentation and over 17,000 credits have been approved for purchase, totalling around $33.3 million, covering:

• Central Hunter Ironbark – Spotted Gum – Grey Box Forest
• Freshwater Wetlands on Coastal Floodplains
• Hunter Valley Footslopes Slaty Gum Woodland
• Myall Woodland
• North-west Floodplain Woodlands
• Shale Sandstone Transition Forest
• Southern Tableland Dry Sclerophyll Forests
• Southern Tableland Grassy Woodlands
• Western Peneplain Woodlands
• Western Slopes Dry Sclerophyll Forests
• Western Slopes Grassy Woodlands
• White Box –- Yellow Box – Blakely's Red Gum Grassy Woodland
• threatened plants: Bauer's midge orchid, leafless tongue orchid and silky Swainson-pea
• threatened animals: brush-tailed rock-wallaby, common planigale, eastern cave bat, eastern pygmy-possum, large-eared pied bat, pale-headed snake, regent honeyeater, squirrel glider and southern myotis.

The Taskforce provides feedback on credits not being purchased, and offers opportunities to promote credits for sale through the Biodiversity Credits Catalogue.