Our review of the credits market this year will continue to monitor its performance and report trends in key metrics, including demand and supply, credit pricing, trading mechanisms (including mechanisms supported by NSW Government entities), market concentration and competition, information availability, transaction and entry costs, and market confidence. Where relevant, we will identify opportunities to improve the effectiveness of the market, while monitoring legislative and policy changes as they are announced by the NSW Government.
In 2024-25, transaction volumes in the biodiversity credits market were comparable to those from the prior financial year. A more diverse range of credit types were transferred between buyers and sellers. Development proponents relied less on the Biodiversity Conservation Fund than in the prior 2 years. However, the market overall remains highly concentrated, particularly on the buyer side. Credit purchases by the Biodiversity Conservation Fund (which will facilitate acquittal of the Fund’s liabilities) saw a material increase. However, an increasing number of the Fund’s acquittals are not on a like-for-like basis.