No net loss, the mitigation hierarchy and the economics of biodiversity offsets

Biodiversity offsets are used in project planning processes as a mechanism to help compensate for the biodiversity loss caused by development projects. Offset programmes most commonly seek to deliver a neutral outcome on biodiversity from development projects, or no net loss of biodiversity, though some have adopted a more ambitious goal of delivering a positive outcome, or net gain, for biodiversity. Biodiversity offsets are typically only used to deliver compensation for the residual impacts on biodiversity after measures have first been taken to avoid, minimise and then restore adverse impacts on biodiversity at the development site (i.e. the mitigation hierarchy). Biodiversity offsets may be implemented using one-off offsets, biobanks or payments in-lieu. The economics of offsets is also described.