In December 2023, the Australian Government passed framework legislation for a world-first voluntary Nature Repair Market (NRM), designed to enhance and protect biodiversity in native species. After a further year of work preparing the finer details and operational aspects of the market, individuals and organisations can now participate in the NRM.
In this alert, we explore the recent NRM developments and how to take advantage of the opportunities the NRM presents.
Background
What is the NRM?
The NRM is a voluntary national biodiversity market, enabling a range of individuals and organisations to take action to restore and protect the environment and to obtain and trade biodiversity certificates. Much like Australia’s carbon market (which the NRM is designed to mirror and complement), NRM projects need to comply with nature repair methodology determinations (referred to as methods).
The NRM is:
- legislated by the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW);
- administered by the Clean Energy Regulator (CER); and
- supported by an independent Nature Repair Committee.
How did we get here?
Draft framework legislation for the NRM was first released in December 2022, introduced to Parliament in March 2023, and passed in a surprise turn of events in December 2023 (see our previous alert here).
Throughout 2024, key developments included the appointment of the Nature Repair Committee to support the integrity and transparency of the market and the progression of various methods (see our previous alert here).
Since then, a range of new developments have occurred which, collectively, enabled the NRM to go live on 1 March 2025.
Recent launch of the NRM
Rules
While the Nature Repair Act 2023 (Cth) provides the framework for the NRM, it requires legislative rules to guide the day-to-day operation of the market.
On 23 December 2024, the Nature Repair Rules 2024 (Cth) (Rules) commenced, following consultation that occurred in September and October 2024 on operational aspects of the market. Among other things, the Rules deal with how to register NRM projects, the cancellation of registered NRM projects, the issuing of biodiversity certificates for registered NRM projects, and reporting and notification obligations for registered NRM projects.
The Nature Repair (Applications for Approval of Registration of Biodiversity Project) Determination 2025 (Cth), which commenced on 27 February 2025, provides that applications can be made to register NRM projects from 1 March 2025.
Methods
On 26 February 2025, the Nature Repair (Biodiversity Assessment) Instrument 2025 (Cth) commenced, outlining how NRM methods must describe biodiversity and its improvements.
On 27 February 2025, the Nature Repair (Replanting Native Forest and Woodland Ecosystems) Methodology Determination 2025 (Cth) (Replanting Method) commenced, following consultation that occurred on the method in October 2024.
The Replanting Method covers biodiversity projects that are designed to enhance or protect biodiversity in native species by replanting native forest and woodland ecosystems in the project area on historically cleared land in modified landscapes in a way that will improve the extent and condition of native vegetation or support ecological connectivity.
The Replanting Method is the first approved NRM method. Future methods still under development by DCCEEW include:
- an ‘enhancing remnant vegetation method’ to encourage protection and enhancement of existing native vegetation;
- a ‘permanent protection method’ to protect and conserve biodiversity in line with Australia’s commitment to protect 30% of Australia’s land and waters by 2030;
- a ‘native forest method’ to protect, restore and manage native forests;
- an ‘invasive pest management method’ to focus on the control of specific feral pests or weeds;
- a ‘rangelands method’ to manage and enhance habitat in the arid and semi-arid areas of Australia; and
- Indigenous-led methods (being developed in partnership with First Nations organisations).
Tools
A series of tools have recently been released to underpin and inform participation in the NRM. Some of these tools may also have wider application (e.g. they may aid in voluntary or mandatory reporting, project planning and due diligence, the development of project business cases, or the preparation of environmental approval applications).
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Tools
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Overview
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Released by
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PLANR is an online geospatial application designed to support participation in the NRM. It contains key tools to assist those interested in carrying out NRM projects, including:
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DCCEEW |
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This contains guidance on determining eligibility to participate in the NRM, choosing a project method and permanence period, planning the project, choosing the proponent, registering the project, running and reporting on the project, obtaining and selling biodiversity certificates, and making changes to the project. |
CER |
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The accounts track changes in Australia’s diverse ecosystems and underpin the NRM in an effort to make it easier for business, philanthropists and others to invest in activities that protect and repair nature across Australia. |
Australian Bureau of Statistics (developed with the CSIRO) |
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This is a comprehensive vegetation dataset providing nationally consistent data on vegetation types across Australia. It will help underpin the NRM. |
DCCEEW |
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This dashboard displays measures and indicators of environmental change to track trends and show the effects of environmental policies and programs over time. It will help underpin the NRM. |
Environment Information Australia (EIA)* |
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This is an interactive, browser-based map viewer showing where key environmental assets are located in relation to a range of geographic features. It can be used to help plan, invest in or implement projects that impact for environment and will help underpin the NRM. |
EIA* |
* We note the EIA appears to have been established within DCCEEW, given the legislation which proposed to establish the EIA as a separate independent body was recently shelved pending the outcome of the 2025 Federal Election (see our previous alert here).
Ties to Australia’s carbon market
As noted above, the NRM has been designed to complement Australia’s carbon market under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) and Carbon Credits (Carbon Farming Initiative) Rule 2015 (Cth). This means proponents can design projects which meet the requirements of both an NRM method and a carbon market method, and therefore reap the rewards under both regimes (being Australian Carbon Credit Units and a biodiversity certificate).
Key eligibility criteria for an NRM project include meeting particular tenure requirements (which can be more complex where Crown land or native title is involved) and ensuring the project is not required to be carried out as a remediation measure for the contravention of a Commonwealth, State or Territory law. However, the specific ‘additionality requirements’ which can sometimes make carbon projects ineligible for participation in the carbon market (e.g. the ‘newness requirement’ which prevents projects that have already started prior to registration from participating) do not apply to NRM projects. This could make NRM projects more accessible and facilitate an existing carbon project also being registered as an NRM project if the relevant requirements are met.
As to whether the NRM will face the same integrity concerns as carbon projects and undergo the same reforms occurring across the carbon market (see our previous alert here), only time will tell. However, as nature-based projects may be able to deliver more measurable and tangible outcomes than carbon projects, there may be less cause for integrity concern.
Next steps
The launch of the NRM and release of the first method is an important milestone in Australia’s nature positive journey, although market uptake (and the extent to which additional methods are developed and released) may turn on the outcome of the 2025 Federal Election.
We encourage landholders, organisations and investors who may be interested in participating in the NRM (either for a standalone nature repair project or a dual nature repair and carbon project) to engage with the above-mentioned tools and continue to monitor NRM developments.
Please get in touch if you would like further advice about the NRM or the risks and opportunities it presents.
Did you miss our recent session on Australia's Nature Positive reforms?
As part of KWM's Sprint to the Finish CPD program, we recently discussed Australia's world-leading Nature Positive reforms, mandatory climate reporting and greenwashing risks. We looked at what these changes mean, what compliance looks like and how they will impact the energy transition. Watch our session on-demand here.
