Healthy biodiversity is important for the quality of life of current and future generations. The credits market plays a key role within the NSW Biodiversity Offsets Scheme. It aims to ensure that biodiversity losses due to development or land clearing are offset by equivalent biodiversity gains.

IPART has been asked to monitor performance and competition in the biodiversity credits market for 3 years from 2022-23. We will make findings and recommendations with the aim of:

• maintaining and promoting competition
• addressing the interests of existing and potential biodiversity market participants, and supporting fair trading
• identifying opportunities to improve market efficiency and address market failure.

This Issues Paper sets out IPART's proposed approach to the review and seeks feedback from the community, including credits market participants, accredited assessors, brokers, ecologists, environmental researchers, local government authorities and other interested parties.