Market-based instruments for natural resource management

Southern Catchment Management Board

 

Request for proposal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incorporating a briefing prepared by John de Groot, Natural Resource Project Officer (Planning), Sydney/South Coast Region, Department of Land and Water Conservation and documents prepared by Paul Martin, Chairman, Southern Catchment Management Board

 

 


Table of contents

Introduction........................................................................................................................... 3

Objectives of the Southern Catchment Blueprint................................................................... 4

Appendix 1: Southern Catchment Blueprint – prioritized management actions requiring market-based instruments..................................................................................................... 6

 

Other attachments

 

 

 

 

 

 

 


Introduction

Various management actions in the Southern Catchment Management Board’s Blueprint require the use of market-based instruments or rely to varying degrees on such mechanisms being available as a resource management tool.

 

One of the key management actions (W4.2) requires the development of market-based mechanisms that encourage and remunerate landholders to deliver environmental services. Seven other blueprint management actions identify the “incentive program” approach as a preferred means of improving catchment management outcomes. Another management action (W2.7) aims to implement the Sydney Drinking Water Regional Plan – “Sustaining the catchments” (Southern Catchment Management Board, 2002). That plan includes the establishment of a pollution offset scheme which will enable new developments to eliminate their pollution impacts on the catchment.

 

The strategies are developed only to the level of very broad principle. The Southern CMB needs to rapidly convert these into

-      very well specified programs

-      with clear indications of the actions that are needed; and

-      a plan of action to give effect to our strategies.

 

Of particular importance to the Board is the fact that around 30% of the landscapes in our region are affected by the requirement to manage water to meet the needs of the Sydney population. This has implications for the social, economic and environmental management for this region. It opens up the possibility of a different (markets and incentives) based approach to ensuring adequate supplies of high quality water to Sydney in a way that is fair to those who are the suppliers of this water, which encourages high quality voluntary conservation, and which will assist in creating thriving communities. Some supporting documentation is attached.

 

In order to convert this potential into reality the Board will need to propose a specific appropriate mechanism, to create the documentation that will be used in advocating that mechanism, and to partner with other stakeholders in seeing this to fruition. We have had some preliminary discussions which suggest that a more completely specified proposal would be given serious consideration.

 

This document is a request for a proposal to provide consulting services to this end. In the first instance the Board needs a scoping document that will trigger more detailed discussion among stakeholders of a water market instrument that will ensure adequate incentives for works within the catchment. That document should

-      indicate the possible structures for such a market mechanism

-      provide some analogous examples and outline their impacts on stakeholders and the environment

-      particularize the pricing and funds flow issues and effects; and

-      outline a preferred approach for more detailed consideration.

 

We request your indications of what you could provide, at what cost, in this regard.

 

 

 


Objectives of the Southern Catchment Blueprint

The Southern Catchment Blueprint (“the blueprint”) ‘advises the government and community of priorities and strategies for natural resource and environmental management in the Southern Catchment for the period 2002 to 2012’. It is ‘intended to be the foundation for a long-term natural resource management program [in which] the emphasis of implementation will shift increasingly towards “on-ground” actions’. ‘The ultimate outcome will be a community-wide shift towards practices and attitudes that are sustainable. In the meantime acceptance of the blueprint, voluntary participation and community education, the flow of resources into programs and the achievement of measurable targets will establish interim benchmarks of [the board’s] progress towards this high ideal’.

 

Amongst seven basic principles the Southern CMB adopted in developing the blueprint are:

the desire to encourage behaviours ‘…that reduce the pressure on our natural resources by developing mechanisms for change that demonstrate ‘…a strong preference for incentives, education and compensation rather than rules and sanctions’ and,

develop strategies that not only prevent deterioration of natural resources ‘…but also provide positive examples of innovative development techniques that result in sustainable resource use’.

 

It is intended that the blueprint will make a difference through an ‘outcomes’ focus, in particular challenging:

government agencies ‘…to be more willing to work in strong partnerships based on trust and respect to maximise the effective use of scarce funds’ and

businesses ‘…to be involved in equitably sharing and protecting natural resources’.

 

The blueprint aims to establish a ‘focus for investment’ over the next ten years which includes ‘[providing] opportunities, information and resources that empower the community to be a more active partner in natural resource management’.

 

Outcomes from implementing the blueprint will be a range of environmental, social and economic benefits. ‘Likely economic benefits include - increased ability for community participation in natural resource management through incentive programs; a prioritised direction for resource investment in the catchment’ [page 39].

 

The following table identifies the prioritized management actions of the Southern Catchment Blueprint which include market-based instruments.

 

Table 1: Management actions related to market-based instruments

 

Priority

Action

10

W4.2 Develop market based mechanisms that encourage and remunerate landholders to deliver environmental services, using the Upper Shoalhaven Catchment as a pilot for implementation.

39

L2.7 Promote the adoption of best management practices for sustainable agriculture and land use through education and incentive programs and in government planning instruments.

41

B5.5 Encourage the adoption and implementation of best management practices for pest animal impact and control by all landholders through education, incentive programs and government planning instruments.

42

W2.7 Implement Sydney Drinking Water Regional Plan – Sustaining the Catchments. [proposal to include Pollution Offset Scheme for developments]

 

60

W3.1 Support the implementation of water conservation and efficiency practices through education, incentive programs and government planning instruments.

61

W4.3 Implement a voluntary incentive program for the protection and/or rehabilitation of prioritised riverine corridors and wetlands.

62

W4.4 Implement best management practices for managing riverine corridors and wetlands through education, incentive program and government planning instruments.

69

B1.5 Promote the adoption and implementation of best management practices for managing native vegetation through education and incentive programs and in government planning instruments.

71

B2.1 Implement a voluntary incentive program for the restoration of priority native vegetation communities and areas including riverine corridors and foreshores.

 

A full list of the above management actions including timeframes, responsible agencies, etc. is contained in Appendix 1.

 

 


Appendix 1: Southern Catchment Blueprint – prioritized management actions requiring market-based instruments

 

Priority

Status

Targets

addressed

Action

Timeframes

Lead organisation/s

Supporting organisation/s

Indicative cost (New $ req.)

10

New

W2

W4

L1

L2

B1

B2

B3

BC2

BC3

W4.2 Develop market based mechanisms that encourage and remunerate landholders to deliver environmental services, using the Upper Shoalhaven Catchment as a pilot for implementation.

06/03-12/08

DLWC

SCA,

NSW Fisheries,

PlanningNSW,

Environmental care groups

Nil

39

Enhanced

W2

W4

L2

BC2

BC3

L2.7 Promote the adoption of best management practices for sustainable agriculture and land use through education and incentive programs and in government planning instruments.

11/02-11/12

DLWC,

Local government,

NSW Agriculture

SCA,

Environmental care groups,

PlanningNSW

$1, 000, 000

41

Enhanced

W2

L2

B4

B5

BC2

BC3

B5.5 Encourage the adoption and implementation of best management practices for pest animal impact and control by all landholders through education, incentive programs and government planning instruments.

11/02-11/12

RLPB,

NSW Fisheries,

NPWS

PlanningNSW,

Local government,

SECMB,

NSW Agriculture

$100, 000

42

New

W1

W2

W3

W4

LI

L2

W2.7 Implement Sydney Drinking Water Regional Plan – Sustaining the Catchments. [proposal to include Pollution Offset Scheme for developments]

 

12/02 – 11/12

SCA

EPA,

Local government,

SCA,

NSW Fisheries,

DLWC,

Landholders, PlanningNSW

2, 000, 000

60

Enhanced

W3

BC2

BC3

W3.1 Support the implementation of water conservation and efficiency practices through education, incentive programs and government planning instruments.

07/04 - 11/12

Local government,

Sydney Water

DLWC,

PlanningNSW,

Environmental care groups,

Building industry,

SCA,

IPART

$400, 000

61

Enhanced

W2

W4

L1

L2

B1

B2

B3

BC2

BC3

W4.3 Implement a voluntary incentive program for the protection and/or rehabilitation of prioritised riverine corridors and wetlands.

12/03-11/12

DLWC

Local government,

Environmental care groups,

Landholders,

SCA,

NSW Fisheries

$5, 000, 000

62

Enhanced

W2

W4

L1

L2

B1

B2

B3

BC2

BC3

W4.4 Implement best management practices for managing riverine corridors and wetlands through education, incentive program and government planning instruments.

12/03-11/12

DLWC,

Local government

SCA,

NSW Fisheries,

NSW Agriculture,

PlanningNSW,

Environmental care groups,

Landholders

$100, 000

69

Enhanced

W2

W4

L1

L2

B1

B2

B3

B4

BC2

BC3

B1.5 Promote the adoption and implementation of best management practices for managing native vegetation through education and incentive programs and in government planning instruments.

11/02-11/12

DLWC,

Local government

NPWS,

SCA,

Landholders,

PlanningNSW,

Environmental care groups,

NSW Agriculture,

State Forests

Nil

71

Enhanced

W2

W4

L1

L2

B1

B2

B3

B4

BC2

BC3

B2.1 Implement a voluntary incentive program for the restoration of priority native vegetation communities and areas including riverine corridors and foreshores.

 

11/02-11/12

DLWC

NPWS,

SCA,

Local government, Environmental care groups

$1, 000, 000