Native Vegetation: An Update
Auctions, cap and trade (for point sources) and offsets can be successfully used to address a wide variety of water quality, salinity and environmental problems in the Australian landscape; Market based instruments, especially auctions, can deliver large cost savings relative to traditional natural resource management. 24
On 2 December 2005 Australian Government Ministers on behalf of the Natural Resource Management Ministerial Council announced that up to $5 million in extra funding will be provided by Australian, State and Territory governments for round two of the National Market Based Instruments Pilot Program. Round two projects will investigate ways of progressing market based instruments from trial to implementation. 25
In NSW, the challenge will be how Catchment Management Authorities use this knowledge and apply market based instruments within the framework of the Native Vegetation Conservation Act 2003.
National MBI Working Group, Evaluation of Round One of the Market Based Instrument Pilot Program. 17 August 2005, at 2.
See the National Market Based Instruments Pilots Program website: www.napswq.gov.au, Accessed May 2006.