Tēnā koutou katoa,

We are a multi-disciplinary team at the University of Otago researching the opportunities and implications for rural communities of Aotearoa New Zealand’s journey towards a net zero carbon future. Our research is rooted in farmer perceptions, responses to policy and behavioural drivers within the context of wellbeing, environmental stewardship and economic prosperity. For example, we recently conducted a study about conflicts between what it means to be a ‘good farmer’ and changes in freshwater policy (Walton et al. 2023).

An important insight from our engagement with farmers is that managing freshwater quality and native biodiversity is foremost about managing people. Farmers and other landowners are experiencing multiple pressures from changes in freshwater management (National Policy Statement for Freshwater Management 2020), biodiversity directives (National Policy Statement for Indigenous Biodiversity 2022) and the requirement to measure carbon footprints on farms (He Waka Eke Noa 2019, 2022). This is leading to tension between biodiverse practices and productive land use on privately owned land in Aotearoa New Zealand and globally. Protecting native biodiversity on privately owned land has regional and national benefits but compliance costs and opportunity costs from forgone income (Clough, 2000) are borne by the landholder. These opportunity costs are often overlooked and land practices that protect and enhance biodiversity on privately owned land currently lack financial incentives for their uptake.

We are currently researching aspects of biodiversity credits as an innovative tool to provide positive, financial incentives for biodiversity uptake, and were very pleased to see the Government’s consultation document ‘Helping nature and people thrive’. Our research so far has focused on categorising biodiversity credit systems worldwide by system type (markets/direct payments/hybrids), evaluation method, monitoring mechanism and landholder incentive (see Appendix 1 for an overview). We are also liaising with local catchment groups Otago South River Care and Tiaki Maniototo as part of further research.

Clough, P. (2000). Encouraging Private Biodiversity – Incentives for Biodiversity Conservation on Private Land. https://www.treasury.govt.nz/sites/default/files/2018-01/twp00-25_1.pdf

Walton S., Lord J.M., Lord A.J. and Kahui V. (2023). Conflicts between being a ‘Good Farmer’ and freshwater policy: a New Zealand case study. Agriculture and Human Values https://doi.org/10.1007/s10460-023-10471-1