»MBIs in action
Market-based instruments in action
This section of the Designer Carrots website provides information on how regional NRM stakeholders are involved in market-based instruments (MBIs) as well as examples of MBIs being used for natural resource management. In this section you can browse current case studies (see table below) where MBIs are being put into practice for environmental outcomes. Links are also available for International examples, state and territory MBI programs and the National MBI Pilot Program case studies.

There are a range of potential benefits arising from the use of MBIs including:

  • Increasing participation, particularly in areas with low levels of engagement.
  • Providing transparency and accountability for investment and allocation decisions.
  • Increasing land management options through greater flexibility and opportunity for innovation.
  • Providing land managers with equitable payment for environmental services.
  • Providing better mechanisms for negotiation and information transfer, particularly in obtaining property-scale biophysical and resource data.
  • Improving the allocation of natural resources and defining property rights.
Current case studies
 TitleDescription
BushBids programThe BushBids program in South Australia has enhanced the protection and improvement of biodiversity and ecosystem values in the remaining 10 per cent of remnant vegetation in the Eastern Hills of the South Australian Murray Darling Basin region.
Soil conservation tendersIn order to overcome various soil-related issues more cost-effectively, the Eyre Peninsula NRM Board in South Australia has initiated two successful projects to improve soil conservation through market-based incentives.
River Tender programThe River Tender program is an auction system where eligible landholders submit bids to undertake conservation works. At Ovens River in Victoria, almost 140 kilometres of valuable frontage has been protected.
Degrees Celsius projectThe Degree Celsius Initiative saw Australia’s 56 NRM groups collectively shape the nation’s emerging voluntary carbon market, by establishing a regional-scale greenhouse gas abatement and mitigation project to combat climate change.
Wetland Tender programRecognising the importance of conserving more than 5400 wetlands in the Glenelg Hopkins region, the Glenelg Hopkins CMA has implemented the Wetland Tender Program, funded by the Victorian Government.
Murrumbidgee EcoTender II projectThe Murrumbidgee EcoTender II project increases protection for native vegetation communities, wetlands and riparian areas as well as improved water quality. Land managers were eligible for funding for up to 15 years.
River Murray Forest ProjectThis project aims to create a River Murray Forest through revegetation of large areas of cleared land for the purpose of long-term habitat and biodiversity outcomes. Over 2,650 hectares have been commissioned for planting.
BushTender—trialling outcome-based contractsIn 2009–10 the BushTender program trialled the use of outcome-based contracts in the northern plains of Victoria. Landholders are required to meet certain biodiversity outcomes to receive annual payments. The trial will be completed in 2014.
Ecofund Queensland—Environmental OffsetsIn 2009 Ecofund Queensland established an offset site through a Nature Refuge Agreement to counter-balance adverse environmental impacts of the Blackwater Creek Diversion and Coal Mine Project.
Sustainable Grazing of Sheoak Grassy WoodlandsThis biodiversity tender aims to protect and enhance areas of grazed Sheoak Grassy Woodland (SGW) in Eyre Peninsula through a reverse auction system. Management action plans hope to reverse the dramatic decline in SGW caused in part by grazing practices.
Lachlan Soil Carbon Pilot ProjectThe Lachlan Soil Carbon Pilot Project focuses on soil carbon sequestration, examining the potential of developing soil carbon markets in the Cowra Trough area of the Lachlan CMA.
PlainsTenderA fifth round of this multi-regional project is currently underway. PlainsTender protects and enhances the natural values of the Victorian Volcanic Plains bioregion, which supports significant numbers of threatened species and vegetation communities.
Corangamite CoastalTenderThe CoastalTender project seeks to protect and restore key biodiversity coastal assets in the Corangamite region of Victoria. Round one was run as a pilot in 2010. Round two in 2011 placed over 1,100 hectares under management contracts.