The Australian Experience with Environmental Offsets: An Illusory Tool for Addressing Biodiversity Loss and Climate Change?

Recent studies, including by administrative integrity bodies, Parliamentary committees and former ‘insiders’ of Australian regulatory bodies, show serious shortcomings in the operation of biodiversity and carbon offsets in Australia. Specifically, the benefits attributed to the offset mechanism in both contexts have been criticised as illusory in practice. This leads us to question whether it is possible to accomplish carbon emission reduction and biodiversity conservation goals through a governance framework that includes offsetting. We assess the evolution of offsets as a regulatory and voluntary mechanism, offering a critical perspective on the Australian experience. Australia has been an enthusiastic early adopter of both forms of offset, and may be perceived internationally as an exemplar. While we welcome the Australian Government’s recent commitments to international climate mitigation and biodiversity conservation goals, we argue that, by continuing to pursue offsets as part of its biodiversity conservation and climate mitigation strategies, Australian lawmakers may be committing to a course of action that will prevent it from meeting those same commitments.