Three ways to deliver a net positive impact with biodiversity offsets

Biodiversity offsetting is the practice of using conservation actions, such as habitat restoration, management, or protection, to compensate for ecological losses caused by development activity, including construction projects. The typical goal of offsetting is no net loss (NNL), which means that all ecological losses are compensated for by commensurate offset gains. We focused on a conceptual and methodological exploration of net positive impact (NPI), an ambitious goal that implies commitment beyond NNL and that has recently received increasing attention from big business and environmental nongovernmental organizations. We identified 3 main ways NPI could be delivered: use of an additional NPI multiplier; use of slowly developing permanent offsets to deliver additional gains after NNL has first been reached during a shorter offset evaluation time interval; and the combination of permanent offsets with partially temporary losses. An important and novel variant of the last mechanism is the use of an alternate mitigation hierarchy so that gains from the traditional third step of the mitigation hierarchy (i.e., onsite rehabilitation) are no longer be counted toward reduced offset requirements. The outcome from these 3 factors is that for the same ecological damage, larger offsets will be required than previously, thereby improving offset success. As a corollary, we show that offsets are NNL only at 1 ephemeral point in time, before which they are net negative and after which they become either NPI or net negative impact, depending on whether permanent offsets are combined with partially temporary losses or if temporary offset gains are combined with partially permanent losses. To achieve NPI, offsets must be made permanent, and they must achieve NNL during an agreed‐upon offset evaluation period. An additional NPI‐multiplier and use of the modified mitigation hierarchy will deliver additional NPI gains. Achieving NPI is fully conditional on prior achievement of NNL, and NNL offsets have been frequently observed to fail due to inadequate policy requirements, poor planning, or incomplete implementation. Nevertheless, achieving NPI becomes straightforward if NNL can be credibly reached first.