Net Present Biodiversity Value and the Design of Biodiversity Offsets

There is an urgent need to develop sound theory and practice for biodiversity offsets to provide a better basis for offset multipliers, to improve accounting for time delays in offset repayments, and to develop a common framework for evaluating in-kind and out-of-kind offsets. Here, we apply concepts and measures from systematic conservation planning and financial accounting to provide a basis for determining equity across type (of biodiversity), space, and time. We introduce net present biodiversity value (NPBV) as a theoretical and practical measure for defining the offset required to achieve no-net-loss. For evaluating equity in type and space we use measures of biodiversity value from systematic conservation planning. Time discount rates are used to address risk of non-repayment, and loss of utility. We illustrate these concepts and measures with two examples of biodiversity impact–offset transactions. Considerable further work is required to understand the characteristics of these approaches.     

The Effect of Wetland Mitigation Banking on the Achievement of No-Net-Loss

/ This study determines whether the 68 wetland mitigation banks in existence in the United States through 1 January 1996 are achieving no-net-loss of wetland acreage nationally and regionally. Although 74% of the individual banks achieve no-net-loss by acreage, overall, wetland mitigation banks are projected to result in a net loss of 21,328 acres of wetlands nationally, 52% of the acreage in banks, as already credited wetland acreages are converted to otheruses. While most wetland mitigation banks are using appropriate compensation methods and ratios, several of the largest banks use preservation or enhancement, instead of restoration or creation. Most of these preservation/enhancement banks use minimum mitigation ratios of 1:1, which is much lower than ratios given in current guidelines. Assuming that mitigation occurs in these banks as preservation at the minimum allowable ratio, ten of these banks, concentrated in the western Gulf Coast region, will account for over 99% of projected net wetland acreage loss associated with banks. We conclude that wetland mitigation banking is a conceptually sound environmental policy and planning tool, but only if applied according to recently issued guidelines that ensure no-net-loss of wetland functions and values. Wetland mitigation banking inevitably leads to geographic relocation of wetlands, and therefore changes, either positively or negatively, the functions they perform and ecosystem services they provide. KEY WORDS: Mitigation banking; Wetlands; Army Corps of Engineers; No-net-loss     

A Rapid Method to Score Stream Reaches Based on the Overall Performance of Their Main Ecological Functions

A method was developed to score the ecological condition of first- to third-order stream reaches in the Auckland region of New Zealand based on the performance of their key ecological functions. Such a method is required by consultants and resource managers to quantify the reduction in ecological condition of a modified stream reach relative to its unmodified state. This is a fundamental precursor for the determination of fair environmental compensation for achieving no-net-loss in overall stream ecological value. Field testing and subsequent use of the method indicated that it provides a useful measure of ecological condition related to the performance of stream ecological functions. It is relatively simple to apply compared to a full ecological study, is quick to use, and allows identification of the degree of impairment of each of the key ecological functions. The scoring system was designed so that future improvements in the measurement of stream functions can be incorporated into it. Although the methodology was specifically designed for Auckland streams, the principles can be readily adapted to other regions and stream types.