The Western Cape province of South Africa contains globally unique biodiversity, to which pressure for economic growth and development poses a significant threat. Legal and planning frameworks support biodiversity conservation and biodiversity offsets. Biodiversity plans at different scales provide a clear indication of spatial priorities for conservation. In this context, a draft guideline for biodiversity offsets in the Western Cape has been developed (DEA&DP, 2007) which introduces biodiversity offsets as an integral part of the regulatory environmental impact assessment and development authorization process. The approach focuses on the area- and monetary-based compensation to secure and manage priority areas in the long term. The emphasis is on adding priority habitats to the conservation estate, rather than on achieving ‘no net loss in the strictest sense. This paper explains how the context of the Western Cape has shaped its approach to biodiversity offsets: the political, socioeconomic, and institutional characteristics are as important in designing a guideline for offsets as biodiversity considerations. The paper notes key challenges facing the province in implementing the guideline.
