$82,000 from council carbon credit scheme

Thirty thousand dollars surplus revenue in Baw Baw Shire’s native vegetation scheme may be invested in revegetation of Drouin’s Amberly Estate Tree Reserve.

A report on the scheme was presented to council last week, outlining the ongoing success of the scheme which has generated $273,501 income since it began three years ago.

Total expenses incurred by the scheme since inception is $82,602, including the scheme’s initial setup and establishment costs.

Council also agreed to invest $30,000 in revegetation of the Amberly Estate tree reserve subject to community consultation.

So far this financial year, the scheme has generated $82,380 of income from seven vegetation credit trades and incurred $2490 expenses from maintenance works at Lardner and Trafalgar offset sites.

Council initiated the native vegetation offset scheme in 2013 to address a lack of third-party offsetting opportunities for developers.

The policy defines where revenue from the scheme can be spent.

Revenue can be used for council-approved purchase of land parcels containing suitable native vegetation for participation in the scheme; as well as other council approved environmental projects on council land involving rehabilitation, restoration and/or management of native vegetation or native fauna habitat.

The report to council said the state government was currently reviewing native vegetation removal provisions and changes were expected to be incorporated into the planning scheme by the end of the year.

Council approved its trading price for the scheme’s native vegetation credits to be set at $240,000/biodiversity equivalence unit.

The scheme’s two offset sites at Lardner and Trafalgar Transfer Stations were audited by DELWP in October 2015 for compliance against management actions.

In the 2014/15 financial year, the scheme generated $44,200 of income and incurred $25,000 of expenses.

*Based on the Scheme’s current trading price, there is a remaining $169,680 of vegetation credits available for trading.

Officers said using surplus revenue in the scheme for the Drouin reserve complied with requirements of the scheme.

“Revegetation works within the Tree Reserve in Drouin Amberly Estate will create a long-term environmental asset for current and future residents within the estate,” the report said.

The scheme’s Lardner offset site has now sold all of its vegetation credits. No further income can be generated from it.

All remaining vegetation credits for trade within the scheme are located at the Trafalgar offset site.

Cr Peter Kostos said it had been a successful program and council had received a good return from the scheme.

Cr Mikaela Power said it was another way council could celebrate trees with the community and get a financial return at the same time.

“This is a fantastic scheme and I commend the work being done on it,” she said.