How it works

Environmental markets work by having agreed rules and programs that measure how much specific project activities protect or restore the natural environment.

Projects are usually 25 or 100 years. At the conclusion of a project the work to repair or restore the environment is recognised and acknowledged in the form of credits or certificates.

Environmental markets take on many forms, each focused on a different aspect of the environment. Different markets and rules are in place to make sure environmental work is recognised, measured, and rewarded fairly. Some of these markets are run by the government, and others are run by private or independent companies. Projects that meet agreed standards can earn credits or a certificate which can be sold.

This information focusses on markets which create incentives for the restoration or protection of the natural environment and biodiversity. Some projects can also earn carbon credits.

To make sure projects have ecological integrity, transparency, and economic viability there are several stages involved in generating biodiversity credits or certificates. These include:

Project design: identifying the area(s) for the project, completing an assessment of the current ecological condition to be used as a reference point, and then defining what activities will take place, over what timeframe, and expected outcomes or change to the environment.
Project engagement: talk to everyone who has an interest in the area about the project. Find out how they want to be involved and if it is appropriate to share cultural knowledge. This includes Traditional Owners and anyone else with financial or other interests. Some of these people may need to give consent before the project can start.
Biodiversity measurement and verification: using standardised biodiversity metrics, set out specific details of the project including what will be measured, how it will be measured, and when it will be measured. Seek confirmation from independent group to verify the details.
Project registration: register the project with the relevant administrator/ regulator.
Project implementation: start the project activity, monitor and measure changes. Keep track of activities and biodiversity outcomes. Provide regular reports or updates to the relevant authority. Depending on the project lifetime, there may be ongoing commitments to monitor and report after credits/certificate have been issued.
Application for credits/certificate: once the results of your project (changes in biodiversity) have been verified the relevant regulatory or administering body will issue credits or a certificate. These will be recorded in a public or private registry to provide transparency and prevent double-counting.
Sale and use: once issued, businesses, governments, or individuals can buy these credits or certificates to support environmental work or meet sustainability goals. They can also be traded. Some buyers use credits to meet biodiversity offset obligations or voluntary sustainability goals. When this is done, credits/certificates are removed from the relevant registry to prevent reuse and ensure integrity of the relevant scheme.

Regulator or scheme	Responsible	Description
Nature Repair Market	Australian Government (DCCEEW)	Commonwealth-led scheme introduced in 2025 to support investment in biodiversity restoration and protection across Australia. Projects can be stacked with carbon projects (ACCU Scheme).
Clean Energy Regulator (CER)		Central agency responsible for administering the Nature Repair Market Scheme, issuing certificates, and ensuring compliance. Registered Nature Repair Market projects that achieve measurable outcomes using an approved methodology can apply for a certificate (one per project) which can be sold, traded, or held.
Eco-Markets Australia	Independent Administrator	Facilitates the creation, certification, and trading of high-integrity nature credits, including biodiversity credits, water quality improvement credits, Cassowary Credits and Reef Credits.
Accounting for Nature Ltd.	Independent Administrator	Established the Accounting for Nature® Framework using accredited methods and administers NaturePlus™ credit program. Credits generated using independent methodology for projects that actively restore or conserve the environmental condition of native species and ecosystems as set out in the Accounting for Nature® Framework.
Nature Credits (Voluntary)		A nature credit is a unit that shows a real, measured and independently verified improvement to nature. This can include restoring habitat, protecting biodiversity, planting trees or improve an ecosystem. Nature credits are voluntary, and can be sold. For example, they include Cassowary Credits and Reef Credits. There are a number of Nature Credits and credit schemes in Australia. They are developed based on recognised methodologies. All credits must be independently verified and audited.
Biological Diversity Units (BDU)	Wilderlands (Independent organisation)	Independent methodology based on each BDU representing one square metre of land that is: permanently protected under a state conservation covenant; actively managed for at least 20 years to maintain or improve biodiversity; and geotagged and independently certified to ensure transparency and traceability.

Regulator or scheme

Responsible

Description

The Biodiversity Offsets Scheme (BOS)

NSW Government – Environment and Heritage

NSW framework designed to avoid, minimise, and offset biodiversity impacts from development and land clearing. It ensures that biodiversity losses are compensated through scientifically robust and transparent methods.

Regulator or scheme

Responsible

Description

Cassowary Credits

Terrain NRM

Independently verified and tradable biodiversity credits specific to rainforest restoration and protection in the Wet Tropics region of Far North Queensland.

Option to combine with carbon credits.

EcoMarkets Australia

Independent Administrator

Facilitates the creation, certification, and trading of high-integrity nature credits, including biodiversity credits and water quality improvement credits.

Administers the Cassowary Credits program.

Regulator or scheme

Responsible

Description

Significant Environmental Benefits

South Australian Government – Department for Environment and Water

A Significant Environmental Benefit (SEB) may be required to offset the impact of native vegetation clearing. SEB grants may be offered by the Native Vegetation Council to support with protecting, restoring, or managing native vegetation.

The Native Vegetation SEB Credit Register provides a public record of established and potential SEB credits.

Regulator or scheme	Responsible	Description
Australian Biodiversity Units (ABUs)	Victorian Government (DEECA)	Government-accredited biodiversity credits that represent the permanent protection and management of native vegetation. An ABU typically corresponds to a defined area of land (e.g., 1.5 m²) that is protected under a conservation covenant, ensuring its ecological value is preserved in perpetuity.
Native Vegetation Credit Register	Victorian Government (DEECA)	Register of all Native Vegetation Credits including ABUs.

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How it works

Environmental markets work by having agreed rules and programs that measure how much specific project activities protect or restore the natural environment.

To make sure projects have ecological integrity, transparency, and economic viability there are several stages involved in generating biodiversity credits or certificates. These include:

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