The purpose of the forum was to share the latest developments in market-based instruments (MBI) in Australia and the future application of MBI in this country, including research and capacity-building needs.
The forum program provided a mixture of presentations on recent projects and future challenges for MBI design and implementation, with audiences engaged through interactive panel discussions and Q&A sessions.
Of particular interest were talks on carbon markets and their implications for regional Australia by Eliza Murray of the Australian Government’s Department of Climate Change and Energy Efficiency, and a presentation on farmer experiences in using MBI and the agriculture sector’s capacity to participate in ecosystem services markets by Philip Townsend of the Australian Bureau of Agricultural and Resource Economics and Sciences.
At the end of the forum, a session was dedicated to discussing ‘where to from here’, with groups brainstorming about the most exciting aspects of using MBI in natural resource management, what the key research questions for MBI are, and concerns about what is happening with MBI. This information will be useful in designing policies and initiatives around future MBI application in Australia.
Discussion showed that participants felt the combined use of legislation and MBI was a positive way to achieve NRM outcomes, particularly with respect to offset programs and the opportunity implement them in additional jurisdictions. Participants also noted an exciting change in landowner attitudes in which many landholders now see resources such as biodiversity as assets rather than as limitations to agricultural production.
Other comments from the forum cite evidence that some MBI are reducing transaction costs for achieving NRM objectives, and that multiple rounds of tenders are providing proof of concept, producing learning outcomes, helping redefine goals and engaging landowners through market learning.
There was also enthusiasm for the potential of carbon sequestration activities to enhance other NRM outcomes through MBI, the scale of changes occurring through the use of MBI, the range of issues being tackled using MBI, engagement of new industries and investors, and evidence of innovation.
A large number of general and specific potential research topics were recorded. The need for research into the use of MBI in some specific NRM areas was identified, including using MBI for restoring riparian habitats, delivering environmental flows and producing biodiversity co-benefits from carbon investments. Other research gaps include valuing and trading the full complement of ecosystem services (bundling and stacking) as well as net environmental gain instead of single services.
There was clear evidence of a need for more discussion between those working in policy and research and those working in implementation.
Social and economic research on engagement, participation and experience of landowners in MBI was considered to be lacking, while further research is needed on the longer term social and economic impacts of changing land use for management of natural resources.
Research into engaging the private sector in natural resource management through markets was a priority for many, particularly the way in which the Carbon Farming Initiative might produce biodiversity co-benefits from investments in carbon bio-sequestration.
The necessity of quantifying ecosystem services and consistent environmental accounting standards was also a common theme.
It was noted as a concern that many of the programs discussed are in the settled agricultural regions of the south-eastern corner of Australia. Participants argued that other areas, particularly remote areas and Indigenous lands, including parts of Western Australia and the Northern Territory, may be missing out.
Participants noted in the forum evaluation that their involvement in the event increased their knowledge of a wide range of issues relating to MBI for natural resource management in Australia (see Figure 1). More than 80 per cent of respondents agreed or strongly agreed that participation in the forum had increased their knowledge of the current use, recent design and implementation experiences, hot topics and future challenges for use of MBI in Australia.
Figure 1. Participant evaluation of the forum’s contribution to increased knowledge of MBI
When asked in the evaluation form what they gained most from attending the forum, participants agreed networking and hearing from practitioners was of great value.
Greater knowledge and understanding emerged as a strong theme in evaluation responses, with many participants reporting it had been useful to learn about the diversity of MBI being used, including comparison of biodiversity offset schemes.
The presentations, discussion and feedback suggest that MBI use in NRM in Australia has evolved beyond trialling market-like approaches to a second stage of development. A number of types of MBI are now established as ongoing programs and there are new possibilities with the advent of the Carbon Farming Initiative and associated policies..
Key recommendations to come out of the National MBI Forum
- Undertake and publish a review of recent MBI activity in NRM in Australia, which could act as a situation analysis, a directory for projects and a resource for new programs.
- Work with key researchers to develop a research prospectus for further examination of social and cultural impacts of MBI use in NRM. There is clear interest in examining the impact of MBI on agricultural practice, Indigenous groups and social cohesion.
- Organise a forum in 2012 along similar lines to the 2011 National MBI Forum but over two days, with a wider range of topics across the design, implementation and impact of MBI, and workshops focused on areas of interest highlighted at the 2011 National MBI Forum.
- Organise or promote the continuation of a network of MBI practitioners and interested researchers and policy makers. Alternatively, support for regional and state-based champions to hold discussions or local forums might ensure ongoing links between practitioners in different locations and institutions.
All in all, lively interaction and feedback indicate that the National MBI Forum helped increase participants’ understanding of MBI in Australia, facilitated valuable networking opportunities, and provided important insight into research opportunities and the future application of MBI in Australia.
Quotes from forum participants:
“Well done, very informative.”
“Well run—good use of technology …excellent time management.”
“It was really good and has made me think through how we can do things better in the future.”
“The intimate space was good.”
“I enjoyed the relaxed format.”
“It was really well run, very professional. The line up of speakers was excellent and everyone addressed the forum with consistent and appropriate information. Helping meet travel costs was an excellent bonus, especially for people who need to travel from a long way.”
“Well facilitated, good length, interesting presentations.”
“Excellent, I loved it. Wish they would let us out more often!”