|
|
|
|
Net gain |
|
|
|
|
|
( if any) |
|
Environmental goods and services |
- |
Potential predicted impact |
Residual impact
On-site mitigation
Minimise
Avoid
|
Payment made for offset |
Offset
Offset
Offset approved by policy administrator. Contract for ongoing management of offset site between offset seller and policy administrator
|
Potential predicted impact |
Mitigation hierarchy with remaining residual |
Offset transaction |
|
Offset provided by third party |
Apx Figure C. 1 Offsets within the mitigation hierarchy
Source: Adapted from Crowe and ten Kate( 2010)
Apx Table C. 14 Strengths and weaknesses of offsets
Strengths
� Provides an external demand for an environmental activity
� Facilitates innovation and flexibility with how environmental outcomes are achieved
� Facilitates low cost environmental outcomes
� Could engage landholders who have been difficult to engage with before
Challenges
� Requires an impact to generate the demand for a credit which could result in a net loss
� Can be very costly to create a metric that enables no net loss or net gain transactions
Landholders driving change: Exploring new incentives | 89