Determining Expected Income from a WSUD Developer Offset Scheme
Natural Capital and Climate supported a Greater Melbourne council investigating a Water Sensitive Urban Design (WSUD) developer offset scheme by developing an income forecasting tool and consulting with developers and planning professionals to assess feasibility, demand, and willingness to participate.
A Greater Melbourne council was exploring the establishment of a Water Sensitive Urban Design (WSUD) developer offset scheme to support improved stormwater management outcomes. Under the proposed approach, developers who were unable to meet stormwater management requirements could make an offset contribution, with collected funds directed towards stormwater quality capital works that deliver equivalent benefits to waterway health.
Natural Capital and Climate (NCC) was engaged to help inform the council’s planning and decision-making process. NCC developed a spreadsheet-based modelling tool to estimate potential income generated through the proposed offset scheme. The tool was designed to support strategic planning and provide evidence to guide future scheme development.
To better understand industry perspectives, NCC also undertook targeted stakeholder consultation with developers and planning consultants. Six individuals with experience in WSUD within the municipality were interviewed using a structured interview process. Discussions focused on the types of developments occurring in the municipality, awareness of stormwater management planning requirements, the challenges associated with meeting those requirements, the perceived need for an offset scheme, and willingness to pay offset contributions.
NCC synthesised the consultation findings and presented key insights to council in a report. The report included recommendations for further investigation to improve understanding of how a WSUD developer offset scheme could operate and the level of revenue it may generate over time.
