The Nature Repair Market formally commences

Introduction

With the making of the first methodology and related instruments under the Nature Repair Act 2023 (Nature Repair Act), being the Nature Repair (Replanting Native Forest and Woodland Ecosystems) Methodology Determination 2025 (Replanting Method),¹  project proponents now have the ability to register biodiversity projects² under the Nature Repair Market.

In this update, we provide an overview of the latest developments in the Nature Repair Market in Australia, following the publication of the Replanting Method and the Nature Repair (Biodiversity Assessment) Instrument 2025 (BAI). These instruments mark significant steps forward in the operationalisation of the Nature Repair Market, which was established under the Nature Repair Act in 2023.

Background

Professor Samuel’s review of the Environment Protection Biodiversity Conservation Act 1999 (Cth) (EPBC Act) proposed significant reforms, including the establishment of the Federal Environment Protection Authority (EPA) and Environment Information Australia (EIA), and the development of a Nature Repair Market.

The Nature Positive Laws, which were intended to establish the Federal EPA and EIA (see our previous update here), were formally withdrawn from Parliament on 5 February 2025, confirming that these laws which formed part of the reforms to the EPBC Act will not proceed at the current time.

While EIA will not be established as an independent body under the Nature Positive Laws, EIA has been established within the Department of Climate Change, Energy, Environment and Water (DCCEEW).

For an outline of how the Nature Repair Market is intended to operate, see our previous article here. While the Nature Repair Rules 2024 (Cth) were published on 23 December 2024, the market needed methodologies to be developed to enable projects to be registered.

Replanting method

The Replanting Method was published on 27 February 2025. It provides detailed requirements for projects aimed at enhancing or protecting biodiversity in native species by replanting native forest and woodland ecosystems on historically cleared land in modified landscapes in a way that will improve the extent and condition of native vegetation or support ecological connectivity. The replanting activities may be undertaken through staggered and remedial plantings to introduce an appropriate combination of species from the canopy, mid-storey and ground layer to achieve forest cover within 25 years.

How to register a project?

The first step for project proponents is to register the biodiversity project with the Clean Energy Regulator (CER).

In order to register a biodiversity project the land must be eligible, a site assessment report must be completed, and a project plan developed. In addition, where relevant, culturally significant entities³ must be nominated.

The site assessment report is required to include a range of information, including details of:

Land eligibility

• The project must be located in an eligible region and include eligible land that has been comprehensively cleared⁴ at least five years before the application to register the project is made.
• The project area must have previously supported woody vegetation and forest cover and must have forest cover potential.

Stratification and assessment

• The project area must be stratified into activity areas and exclusion areas, with permanent sampling plots established for monitoring.
• Each activity area or sub-area must be at least 0.2 hectares, and the total activity area of the project must be at least five hectares.
• A starting state assessment must be conducted, including field surveys (with the consent of the relevant Indigenous representatives if relevant) and an assessment of the ecosystem conditions, historic drivers of change, project context and threats to the success of the project.

Project plan

• A project plan must be created and maintained for the permanence period, setting out actions to achieve the project outcome and result in the issuance of a biodiversity certificate.
• The plan must include details of environmental plantings, threats to the project, climate change considerations and measures for conserving threatened species.
• The project plan may also nominate culturally significant entities.

Engagement with relevant indigenous representatives

• Project proponents are required to identify any areas subject to Indigenous land interests, and engagement with the relevant Indigenous representatives for the design and implementation of the replanting project to:
  • Undertake the initial field survey
  • Use Indigenous knowledge, values and data
  • Identify areas that are culturally sensitive or significant

Monitoring and reporting

• Regular monitoring assessments must be conducted to track progress towards restoration targets and threshold values.
• Biodiversity project reports must include detailed information on monitoring results, plantings, and engagement with Indigenous communities.

How to obtain a biodiversity certificate?

To apply for a biodiversity certificate, the project proponent must demonstrate that:

• The relevant indicators for ecosystem conditions have reached the relevant threshold values nominated in the Replanting Method. For projects that have an activity area of:
  • <10 hectares, each threshold value for an indicator must be reached in 100 per cent of the permanent sampling plots
  • >10 hectares, each threshold value for an indicator must be reached in 75 per cent of the permanent sampling plots
• Where culturally significant entities are nominated, the indicators for the ecosystem condition have reached the threshold values and this has been verified by the relevant Indigenous representatives.
• The project proponent has implemented the project consistently with the consent for use of Indigenous knowledge, values or data (if relevant).

Additional requirements

Project proponents must notify the CER if a prohibited activity is undertaken in the project area. Prohibited activities under the Replanting Method include the destruction or removal of native plant biomass, disposal of rubbish, and ground disturbance.

In addition, project proponents must notify the CER if a culturally significant entity is nominated after the project is registered, or an Indigenous representative withdraws consent to use Indigenous knowledge or values in the design or implementation of the project.

Additional resources

Various additional resources have been released by the DCCEEW and the CER to assist project proponents in developing projects under the Replanting Method.

Some of these resources include:

• DCCEEW’s online geospatial application PLANR (Platform for Land and Nature Repair) which includes various tools, including vegetation mapping which project proponents need to refer to so as to identify reference ecosystems under the Replanting Method.
• DCCEEW and the CSIRO’s Ecological Knowledge System (EKS) to assist project proponents by providing accessible information on biodiversity in a proposed project area and determine forecasted biodiversity benefits from management actions.
• The EIA’s Environmental Indicators Dashboard which contains information on ecosystems and species and is accessible here.
• The CER’s step by step guide to participate in the Nature Repair Market.

Biodiversity assessment instrument

The BAI was published on 26 February 2025 by the Minister for the Environment and Water, Tanya Plibersek. This instrument sets out the aspects that must be contained in methodology determinations for biodiversity projects to be registered on the Biodiversity Register and for biodiversity certificates to be issued. The BAI is aimed at ensuring that projects are designed and implemented in a way that enhances or protects biodiversity in native species.

A summary of the key provisions of the BAI are below:

Indigenous knowledge and values

• Methodology determinations must not prevent Indigenous engagement or require the sharing of Indigenous knowledge, values, or data without appropriate consent of, and attribution to, the relevant Indigenous representatives.
• The methodology determinations must contain conditions that if the biodiversity project includes or is informed by Indigenous knowledge, values and data:
  • The project may only be registered if the applicant can demonstrate that:
    • They obtained the appropriate attribution for and consent for the use of the Indigenous knowledge, values or data.
    • Culturally appropriate approaches are being used for the collection and use of the information.
    • If the project area is subject to Indigenous land interests, project proponents have engaged appropriately with relevant Indigenous representatives, including when planning the field survey to assess the project area before the start of the project.
• A biodiversity certificate can only be issued for the project if the applicant can demonstrate:
  • They obtained the appropriate contribution for and consent for the use of the knowledge, values or data.
  • Culturally appropriate approaches are being used for its collection, interpretation and governance.
  • How the project design and implementation includes this information.
  • The proponent has implemented the project consistently with the consent for the use of the knowledge, values or data provided by the relevant Indigenous representatives.
• Information relating to culturally significant entities can only be included in the entry in the Biodiversity Register with the consent of the relevant Indigenous representatives.

Climate change considerations

• In order to be registered, projects must identify areas vulnerable to the reasonably expected effects of climate change that could affect the biodiversity outcome for the project and develop a project plan to mitigate the risk of the biodiversity outcome not being met.

Measuring change in biodiversity

• To be registered, project proponents must undertake a starting state assessment of the project area, including field surveys and assessments of historic drivers of change.
• Methodology determinations must specify processes for establishing counterfactual scenarios (what is likely to occur if the project does not take place) and assessing changes in biodiversity project characteristics.

Fixed and variable biodiversity project characteristics

• To be registered, projects must identify, describe and assess the starting ecosystem condition in the project or activity area and the fixed and variable biodiversity project characteristics.
• Fixed characteristics include reference ecosystems, while variable characteristics include ecosystem condition and culturally significant entities.

Project reporting and monitoring

• Projects must report on progress towards biodiversity outcomes, including the use of indicators and threshold values.
• Regular monitoring and reporting is required to ensure compliance with the methodology determinations.

Conclusion

The publication of the BAI and Replanting Method represents a significant advancement in the operationalization of the Nature Repair Market. These instruments aim to provide a robust framework for the design, implementation, and monitoring of biodiversity projects, ensuring that they contribute effectively to the enhancement and protection of Australia's native species and ecosystems.

If you would like further information about how you can register a project or would like to receive advice about the Nature Repair Market more broadly, please contact a member of our Environment and Planning team.