Biodiversity Credit Supply Fund and credit purchasing

The Biodiversity Credit Supply Fund (the supply fund) buys credits based on demand from development and infrastructure projects. Credits are then sold to public or private sector proponents who need credits to offset the biodiversity impacts of their projects, or other buyers who may seek credits for philanthropic or strategic purposes.

The supply fund is operated by the Department of Climate Change, Energy, the Environment and Water with the aim of making credits easier to sell and buy, improving the functioning of the biodiversity market. The department will apply fair, transparent and ethical processes and decision-making when buying and selling credits through the supply fund.

Biodiversity credits are generated through biodiversity stewardship agreements. The sale of credits provides funding for landholders to improve the management of pests, weeds and fire and restore habitat. 

Operating Protocol

The Operating Protocol document sets out how the supply fund operates. It covers governance, ways to identify demand and supply, methods for buying and selling credits, and monitoring and reporting.

Download: Biodiversity Credits Supply Fund – Operating Protocol

Biodiversity Credit Supply Fund market update

The supply fund market update covers key outcomes from the supply fund's reverse auctions, how auctions are run, the supply fund's role in the market, and information on credits approved for purchase by the supply fund. This is part of regular reporting to support development of the biodiversity credits market and promote understanding of the supply fund.

Download: Biodiversity Credits Supply Fund market update

Targeted reverse auction – now open

Reverse auctions are used to buy credits on a competitive basis through the supply fund. Bids for the current reverse auction open on Monday 24 March 2025 and close at 5:00pm Monday 7 April 2025.

This reverse auction seeks to buy a limited number of existing or issued ecosystem credit types that are on the target list (see the participant's guide, Attachment B) from current owners who:

• own biodiversity credits created under the current Biodiversity Offsets Scheme (Biodiversity Assessment Method credits)
• own biodiversity credits created under the former BioBanking Scheme (Biobanking Assessment Method credits) and hold, or have made an application for, a Statement of Reasonable Credit Equivalence.

To make a bid to sell credits through this targeted reverse auction, you must request a Participant's guide and bid form.

Request Participant's guide and bid form

If this button does not work for you, please request the Participant's guide and bid form directly by emailing [email protected].

Please use 'Request for Participant's guide and bid form information pack' as the subject line of your email.

Key dates for current reverse auction

Bids open Monday 24 March 2025

Bids close 5:00 pm AEST Monday 7 April 2025

Auction results published Wednesday 2 May 2025

Credits available to purchase from May 2025

Notice of future reverse auctions will be announced via this webpage.

The October 2024 auction closed on 23 October 2024 and received 69 bids covering more than 26,500 credits.

Bids were evaluated in accordance with the published auction documentation, and more than 5,000 credits have been approved for purchase, totalling around $23 million, covering:

• Alpine Herbfields
• Bangalay Sand Forests 
• Clarence Dry Sclerophyll Forests  
• Coastal Upland Swamps
• Coastal Valley Grassy Woodlands
• Eastern Riverine Forests
• Floodplain Transition Woodlands
• Freshwater Wetlands on Coastal Floodplains 
• Hunter-Macleay Dry Sclerophyll Forests
• Illawarra Lowlands Grassy Woodland
• Inland Grey Box Woodland
• North Coast Wet Sclerophyll Forests
• Northern Hinterland Wet Sclerophyll Forests
• River-Flat Eucalypt Forests
• South East Dry Sclerophyll Forests
• Southern Lowland Wet Sclerophyll Forests 
• Subalpine Woodlands
• Swamp Oak Floodplain Forests
• Swamp Sclerophyll Forests
• Sydney Coastal Heaths
• Sydney Hinterland Dry Sclerophyll Forests
• Western Slopes Dry Sclerophyll Forests
• threatened plants: austral toadflax, brown pomaderris, mauve burr-daisy, slaty red gum and slender darling pea. 
• threatened animals: alpine she-oak skink, bush stone-curlew, eastern cave bat, eastern pygmy-possum, gang-gang cockatoo, green and golden bell frog, green-thighed frog, large-eared pied bat, long-nosed potoroo, masked owl, powerful owl, regent honeyeater, sooty owl, southern greater glider, southern myotis and wallum froglet.

The department provides feedback on credits not being purchased and offers opportunities to promote credits for sale through the Biodiversity Credits Catalogue.