Abstract
Purpose
To inform the early design of the Environmental Markets Leadership Program (EMLP) and broader public policy and practice, BWA has produced this initial scoping report. This ‘snapshot’ review of current knowledge guides more in-depth subsequent qualitative and quantitative research in 2022-2023, in support of EMLP’s research, monitoring and evaluation framework and activities.
Approach
The current report investigates the barriers and facilitators faced by NSW Farmers and Land Holders to participating in, and co-creating, Environmental Markets (EM), via scoping literature review and subject matter expert interviews.
Results
Our research suggests that participating in EMs is generally understood in practice to include the core elements of identifying, measuring and managing to increase environmental goods and services (EGS) generated on the land, and exchanging financial value attributable to that measurable increase. For most of our SME interviewees, this means selling resulting credits as an asset to a purchaser (corporate, philanthropic, government). Most discussion was about Australian Carbon markets (Emissions Reduction Fund, ERF), followed by Biodiversity Offset Markets (primarily NSW, QLD, Victorian), and water markets were also mentioned, along with a diversity of novel, 1:1 and combined or ‘stacked’ exchanges of multiple environmental services (e.g. carbon + biodiversity). The EMLP recognizes a wide range of value exchanges, and so did some participants. Indeed, farmers are increasingly weighing up selling ‘credits’ against other uses and applications of well-defined and validated environmental credentials of farm products and performance. Beyond a simple transaction, EM is commonly framed as validating and supporting good land management practices, which are valued off-farm in multiple ways, by multiple actors. EMs are a rapidly developing space, with inherent scientific, policy, economic and social complexity, in even long-established markets. Far from farmers simply deciding to ‘opt-in’ or ‘opt-out’, they are active participants in shaping them. Accordingly, farmers engage in a variety of ‘market shaping’, ‘market preparation’, ‘market entry’ and sustainable land management practices. The complex, dynamic situation has created a clear gap for farmer centric, holistic information and decision-making support on their involvement in EMs. Our recommendations reflect barriers and facilitators faced by farmers that were prominent in both the literature, and in practice interviews. They are relevant to EMLP and parallel efforts. A longer list of each can be found in the main report.
To inform the early design of the Environmental Markets Leadership Program (EMLP) and broader public policy and practice, BWA has produced this initial scoping report. This ‘snapshot’ review of current knowledge guides more in-depth subsequent qualitative and quantitative research in 2022-2023, in support of EMLP’s research, monitoring and evaluation framework and activities.
Approach
The current report investigates the barriers and facilitators faced by NSW Farmers and Land Holders to participating in, and co-creating, Environmental Markets (EM), via scoping literature review and subject matter expert interviews.
Results
Our research suggests that participating in EMs is generally understood in practice to include the core elements of identifying, measuring and managing to increase environmental goods and services (EGS) generated on the land, and exchanging financial value attributable to that measurable increase. For most of our SME interviewees, this means selling resulting credits as an asset to a purchaser (corporate, philanthropic, government). Most discussion was about Australian Carbon markets (Emissions Reduction Fund, ERF), followed by Biodiversity Offset Markets (primarily NSW, QLD, Victorian), and water markets were also mentioned, along with a diversity of novel, 1:1 and combined or ‘stacked’ exchanges of multiple environmental services (e.g. carbon + biodiversity). The EMLP recognizes a wide range of value exchanges, and so did some participants. Indeed, farmers are increasingly weighing up selling ‘credits’ against other uses and applications of well-defined and validated environmental credentials of farm products and performance. Beyond a simple transaction, EM is commonly framed as validating and supporting good land management practices, which are valued off-farm in multiple ways, by multiple actors. EMs are a rapidly developing space, with inherent scientific, policy, economic and social complexity, in even long-established markets. Far from farmers simply deciding to ‘opt-in’ or ‘opt-out’, they are active participants in shaping them. Accordingly, farmers engage in a variety of ‘market shaping’, ‘market preparation’, ‘market entry’ and sustainable land management practices. The complex, dynamic situation has created a clear gap for farmer centric, holistic information and decision-making support on their involvement in EMs. Our recommendations reflect barriers and facilitators faced by farmers that were prominent in both the literature, and in practice interviews. They are relevant to EMLP and parallel efforts. A longer list of each can be found in the main report.
| Original language | English |
|---|---|
| Place of Publication | Melbourne Vic Australia |
| Publisher | BehaviourWorks Australia |
| Commissioning body | NSW Environmental Trust (New South Wales) |
| Number of pages | 50 |
| Publication status | Published - Aug 2022 |
Keywords
- environmental markets
- incentives
- natural resource management
- behaviour
