The development of Environmental Compensation under the RMA

Abstract

A number of countries have environmental regimes that provide for environmental compensation as a means to address ecological harm caused by human activities. The provision of offsetting measures may constitute a suitable mechanism for the sustainable management of resources but careful use is advised as they may also justify permanent adverse effects on the environment. To minimise the chance of there being irreversible loss of desirable natural assets, a consistent set of regulations and principles is crucial for the appropriate application of the concept. This paper outlines the development of environmental compensation under the Resource Management Act 1991. First, it discusses the legal framework and the scope of application relating to offsetting activities. Both early and more recent case law is analysed to identify the guiding principles of the Act. Subsequently, the paper argues that the evaluation of offsetting activities should be subject to national guidelines in order to promote a consistent application of environmental compensation.