Reef Trust Investment StrategyInitiative Design and Phase 1 Investment 2014–15

Ministers’ ForewordThe Australian and Queensland Governments have a long history of joint management of the Great Barrier Reef

spanning back to the 1970s. The strong collaboration continues today, and is strengthened through the new joint

arrangements for the Reef Trust.

The Reef Trust is an innovative mechanism designed to consolidate investment in the Great Barrier Reef and disburse

funds strategically to maximise outcomes that improve the health and resilience of the Great Barrier Reef.

We acknowledge the significant work undertaken by landholders, local environment groups, councils, regional natural

resource management organisations, the tourism industry, landcare groups and industry organisations to ensure the

long-term conservation of the Great Barrier Reef for future generations.

The trust will continue to work with the community to complement and enhance existing efforts. It builds on, but does

not duplicate, existing programmes of the Australian and Queensland Governments which aim to improve the health

and resilience of the Great Barrier Reef and the quality of water entering the reef’s lagoon. It will also complement

initiatives, such as the Green Army, the National Landcare Programme and reef best management practice

programmes.

We are pleased to release this interim investment strategy for the Reef Trust, which outlines the design of the trust

and identifies initial priority investments to be implemented from 1 July 2014.

The first phase of the Reef Trust will focus on a small number of initial priority investments that have been informed by

our existing scientific understanding of the key threats to the Great Barrier Reef. The first phase provides an

opportunity to trial a number of different delivery mechanisms, including a competitive tender for nitrogen reduction in

the Wet Tropics.

Through the Reef Trust we will work with partners and community groups to improve water quality entering the Great

Barrier Reef, help control the current outbreak of crown-of-thorns starfish, and protect threatened and migratory

species, particularly dugong and turtles.

Finally, we would like to thank you for your input to date in designing and establishing the Reef Trust and we look

forward to working with you to deliver this exciting new initiative.

The Hon Greg Hunt MPAustralian Government

Minister for the Environment

The Hon Andrew Powell MPQueensland Government

Minister for Environment and Heritage Protection

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Executive SummaryThe Great Barrier Reef is an Australian icon and a World Heritage property recognised internationally for its outstanding

universal value. The Great Barrier Reef is the world’s largest coral reef ecosystem and not only has remarkable biodiversity,

but is also critical to the cultural, economic and social wellbeing of the population who live in the Great Barrier Reef

catchments and the wider Australian and worldwide community.

The Reef Trust is being coordinated jointly between the Australian Government, including the Great Barrier Reef

Marine Park Authority (GBRMPA) and the Queensland Government.

The Reef Trust will commence operation in 2014-15. In addition to a $40 million contribution from the Australian

Government, funding will also be derived from the pooling of offset funds that target specific impacts on the Great

Barrier Reef from development activities. Over time, there will also be opportunity for future funding through private

investments and philanthropic contributions.

The Reef Trust is being developed and implemented in a phased approach. This Investment Strategy is the first step

in the implementation of the Reef Trust. It has been informed by existing scientific, expert and community advice,

gathered through consultation with interested groups and community submissions on the Reef Trust discussion paper.

This strategy identifies the objective and outcomes of the Reef Trust and the priority investments to be supported

through the initial phase. The focus of the Reef Trust is on known critical areas for investment—improving water

quality and coastal habitat along the Great Barrier Reef, controlling the current outbreak of crown-of-thorns starfish,

and protecting threatened and migratory species, particularly dugong and turtles. Included are a number of projects

identified in the Australian Government’s Reef 2050 Plan election commitment to address high priority threats to the

Great Barrier Reef—crown-of-thorns starfish and impacts on dugong and turtles.

Additionally, two key water quality projects have been identified—a competitive tender for nutrient reduction in the Wet

Tropics region and a sediment reduction project in the Burdekin and Fitzroy regions. These trial projects will be

developed in consultation with scientists and experts and are designed to address the highest risks as identified by the

2013 Scientific Consensus Statement on land use impacts on the Great Barrier Reef. The consensus statement

identified that the greatest water quality risks to the Great Barrier Reef are from nitrogen discharge, leading to crown-of-

thorns starfish outbreaks and damage to coral reefs, and fine sediment discharge which is reducing the light available to

seagrass ecosystems and inshore coral reefs.

Improving reef water quality is one of the greatest manageable impacts on the Great Barrier Reef and critical for building the

Great Barrier Reef’s resilience against impacts such as climate change and more extreme weather. While water quality is

on a positive trajectory as a result of significant interventions over the past ten years and the adoption of improved farming

practices by agricultural industries, the most recent reef report card indicates that more effort is needed to meet the desired

targets. Building upon the work already underway and the progress made to date, a key aim of the Reef Trust will be to help

deliver investments and on-ground actions that will bridge the gap between where the current trajectory will take us and

where we need to be to achieve the agreed water quality targets set out in the Reef Water Quality Protection Plan 2013.

A more comprehensive investment strategy will be developed over time and will identify additional projects to be

funded under Reef Trust, including a balance of short, medium and longer term projects.

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Part 1: Background and Context

Introduction

Since the late 1970s the Australian and Queensland Governments have jointly managed the Great Barrier Reef World

Heritage Area and continue to uphold the highest of standards for its management. Under the Great Barrier Reef

Intergovernmental Agreement 2009, the Australian and Queensland Governments have committed to working

collaboratively to ensure the long-term protection and conservation of the Great Barrier Reef ecosystem, and ensuring

its iconic natural beauty, community benefits and outstanding universal values are preserved for future generations.

The Great Barrier Reef World Heritage Area is a large, complex natural system with multiple uses and is subject to

many impacts. The Great Barrier Reef strategic assessments undertaken by the Australian and Queensland

Governments identified the most significant impacts as those relating to climate change, catchment runoff,

modifications to terrestrial supporting habitats and direct use. The accumulation of impacts, through time and over an

ever-increasing area, is diminishing the ecosystem’s ability to recover from disturbances. This is a key concern given

resilience is the region’s insurance against a range of future pressures.

Long-term monitoring of mid- and outer-shelf reefs by the Australian Institute of Marine Science (AIMS) shows the

Great Barrier Reef has lost half its coral cover in the past 27 years. Storm damage, crown-of-thorns starfish, and

bleaching events have been major acute drivers of coral loss across the Great Barrier Reef, while more chronic

pressures from poor water quality and the accumulation of many acute pressures has reduced ecosystem resilience in

inshore waters. Here, an additional 34 per cent of largely fringing coral reefs have been lost since 2005. Current

scientific evidence also indicates that elevated nutrient levels are linked to outbreaks of crown-of-thorns starfish.

A wide variety of management tools, programmes and policies are in place to address the challenges the Great

Barrier Reef is facing. Through the establishment of the joint Australian and Queensland Governments’ Reef Water

Quality Protection Plan 2013 (Reef Plan 2013) and knowledge gained from 10 years of research, collaboration,

coordination and identification of effective on-ground actions, there has been significant effort placed on prioritising

these actions to address the greatest threats to the quality of water entering the Great Barrier Reef. This includes the

2013 Scientific Consensus Statement which reviews and synthesises the significant advances in scientific knowledge

of water quality issues for the Great Barrier Reef and provides a consensus on the current understanding of the

system. The result of the on-ground efforts over recent years demonstrates a positive trend to the improvement of

water quality. Greater targeting of these efforts and an enhancement of the science underpinning investment

decisions over time will further improve water quality outcomes. Existing science provides a sound basis to target

initial investment actions while ways to prioritise future on-ground actions to reduce high-risk pollutants in high-priority

catchments are enhanced.

Given the diverse and wide-ranging threats to the Great Barrier Reef, strategic prioritisation remains key to ensure

that the threats to the Great Barrier Reef are addressed in an effective, efficient and appropriate manner and are

consistent with the long-term vision for the protection of the Great Barrier Reef.

Long-term plan

The Australian and Queensland Governments are currently working together to develop the Reef 2050 Long Term

Sustainability Plan (the plan).The plan will outline the vision, outcomes and targets for the Great Barrier Reef World

Heritage Area; identify a series of collaborative actions; and establish an integrated monitoring programme to measure

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success. The plan will build upon the strong foundation of existing programmes and identify areas where further

collaborative steps can be taken to improve the health and resilience of the Great Barrier Reef.

The Reef Trust is one of the key mechanisms that will assist in the delivery of the plan. It will provide cost effective,

strategic investment to support on-ground action in the Great Barrier Reef World Heritage Area and the reef

catchments for the long-term protection and conservation of the outstanding universal value of the Great Barrier Reef.

Investments will be aligned to key outcomes and targets being developed under the plan.

Figure 1 outlines the relationship between the plan, the Reef Trust, and other initiatives that contribute to the long-term

protection of the Great Barrier Reef.

Pooled resources

An initial $40 million investment will be made by the Australian Government for the Reef Trust. In addition to this initial

contribution from the Australian Government, funding will also be derived from the pooling of offset funds that target

specific residual significant impacts on the Great Barrier Reef from development activities. Over time, there will be

potential for future funding through private investments and philanthropic contributions.

By pooling investments and applying these funds more strategically based on the latest scientific information, funding

for the protection of the Great Barrier Reef will be delivered in a coordinated manner, maximising the outcomes for the

reef.

Building on existing efforts

Reef Trust investment will build on existing efforts, programmes and funding commitments, not duplicate them. The

initial contribution of funding to the Reef Trust is in addition to the current five-year programme of actions by both

governments to protect the Great Barrier Reef that have been committed to under Reef Plan 2013. Reef Plan 2013 is

targeted towards improving the quality of water flowing into the reef lagoon and enhancing the Great Barrier Reef’s

resilience. These efforts are showing results. The most recent reef report card shows that the quality of water entering

the reef continues to improve and that the objective to halt and reverse the decline in water quality has been met.

While water quality is on a positive trajectory as a result of significant interventions over the past ten years and the

adoption of improved farming practices by agricultural industries, more effort is needed to meet the ambitious targets

of Reef Plan 2013. 

Figure 1: Relationship of the Reef Trust to other Great Barrier Reef Initiatives

Investment approach

This Investment Strategy has been informed by existing scientific, expert and community advice and is the first step in

the implementation of the Reef Trust.

Reef Trust will be implemented in a phased approach, with initial trial investments based on the strength of available

evidence about the key threats to the Great Barrier Reef and the effectiveness of actions that can be taken to address

them.

A phased approach will enable some targeted and critical early investments on known key threats while the outcomes

and targets of the Reef 2050 Long Term Sustainability Plan are finalised. It will also allow for future consultation on

both the plan and the long-term investment approach for the Reef Trust.

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This strategy has been informed by consultations with key partners, and the views of Great Barrier Reef community

and industry groups in response to the Reef Trust discussion paper. Submissions were supportive of the concept of a

Reef Trust, principles and priorities. Key themes expressed through the submissions on the discussion paper

highlighted:

the importance of consultation and partnerships to achieve maximised outcomes;

flexible selection and delivery of projects in line with Reef Trust principles to support and encourage innovation;

addressing the primary causes of declining Great Barrier Reef health, including agricultural runoff;

the need to consider regional impacts and delivery approaches; and

independence and transparency in governance arrangements being required to attract future external funds.

The detail in the submissions has been drawn upon to inform this strategy and will shape the longer-term investment

strategy and functioning of the Reef Trust.

This interim strategy outlines the design of the Reef Trust, including its objectives, outcomes and governance

arrangements and identifies the initial round of investment in high-priority actions to be funded from 2014–15. The

design of the Reef Trust will evolve over time and in response to future consultation. The initial focus is on known

critical areas for investment—improving water quality and coastal habitat along the Great Barrier Reef, controlling the

current outbreak of crown-of-thorns starfish, and protecting threatened and migratory species, particularly dugongs

and turtles. The Reef Trust is only one mechanism for delivering investment in the Great Barrier Reef, and as such

relies upon other initiatives across governments, industry and the agricultural community to assist in addressing the

issues facing the Great Barrier Reef.

Review of the investment strategy will be a requirement to take into account new threats and emerging priorities, as

well as community and expert views to enable a rigorous scientific and economic prioritisation of future activities for

delivery through the Reef Trust. This will include collaboration with AIMS, CSIRO and other science organisations to

ensure a robust scientific and economic prioritisation to identify the high-priority actions for Reef Trust investment. A

long term investment strategy will be developed over the course of 2014-15 to inform investment going forward.

Partnership approach

The Reef Trust is being delivered through a partnership between the Australian and Queensland Governments.

This partnership approach includes the Australian Government’s Department of the Environment, GBRMPA and

AIMS, and the Queensland Government’s Department of Environment and Heritage Protection, together with key

interested groups in the Great Barrier Reef, including land managers, natural resource management organisations,

Indigenous groups, fishing, tourism and mining groups, conservation organisations and scientists. Utilising existing

mechanisms, interested groups will provide regular advice on the delivery of the Reef Trust.

Figure 2: Map showing the reach of Reef Trust investment in the Great Barrier Reef World Heritage Area and the reef catchments

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Part 2: Objectives and Principles for Investment

Reef trust objective

The objective of Reef Trust is to:

Provide cost effective, strategic investment which goes above and beyond existing programmes to address key threats to the Great Barrier Reef and catchments for the long-term protection and conservation of the outstanding universal value of the Great Barrier Reef.

Principles of investment

Reef Trust investment will be delivered in line with the following principles:

Additionality and complementarity—investments will build on and align with existing efforts, not duplicate or

replace them.

Clear outcomes and targets—investments are focused on delivering results.

Cost-effectiveness—Reef Trust will invest in diverse, well-planned, cost-effective activities and consider a range

of disbursement mechanisms including market-based instruments.

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Cognisant of available funds—investment priorities will consider the likely size of available funds in the Reef

Trust and co-investment opportunities.

Collaboration and partnerships—investments will consider how Reef Trust can best work with a range of

interested parties to plan, identify, develop and deliver projects. Partners will include the community, volunteers,

Landcare, natural resource management groups, Indigenous groups, industry groups and local government.

Effective delivery– priority projects will be implemented based on sound scientific approaches and methodologies,

and using targeted monitoring and evaluation. This will support effective decision-making and facilitate adaptive

management.

Evidence based and scientifically defensible—planning, identification and development of priority, targeted

projects will be aligned with best available scientific and expert knowledge and guided by the outcomes of existing

scientific and economic prioritisation initiatives.

Importance of leveraging—increased focus on leveraging co-investment and funding contributions for the

delivery of Reef Trust priorities for investment.

Targeted investments arising from offsets—funded activities must target the relevant ecosystem or attribute of

the Great Barrier Reef that is being impacted and be of sufficient magnitude to improve the ecological integrity of

the Great Barrier Reef.

Strategic, on-ground change—making the most of consolidated funds and collaborative efforts with a strong on-

ground delivery focus and minimal administrative overheads.

Outcomes

The Reef Trust aims to maximise the outcomes for the Great Barrier Reef by taking a more coordinated and

collaborative approach to investment.

Outcome 1: Improve the quality of water entering the Great Barrier Reef from broad-scale land use to increase the health and resilience of the Great Barrier Reef.

Land based run-off remains a high threat to the Great Barrier Reef, a threat that can be directly addressed through on-

ground action. Focus will be placed on assisting landholders to improve land management practices and reduce the

loads of nutrients, pesticides and sediment entering the Great Barrier Reef lagoon using cost-effective and innovative

practices.

This outcome will be achieved through accelerating the uptake of a number of diverse, innovative practices and

strategic actions by focusing on greater assistance and engagement with landholders in priority catchments (based on

the 2013 Scientific Consensus Statement).

Implementation of improved management practices can improve the quality of water entering vulnerable parts of the

Great Barrier Reef, reduce the risk of crown-of-thorns starfish outbreaks and build the resilience of impacted inshore

reefs. The targeting of actions will be refined as the science is improved.

Outcome 2: Improve the health and resilience of coastal habitats.

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Since European settlement there have been significant losses and modifications to terrestrial habitats, such as

wetlands, mangroves and riparian areas that support the Great Barrier Reef and provide habitat and vital ecosystem

processes. Restoration to improve ecosystem functioning, ecosystem goods and services, and the resilience of these

ecosystems will be a focus of the Reef Trust. Restoring degraded ecosystems will assist in enhancing the ecosystem

services provided by these habitats, services such as nursery areas, floodwater buffers and sediment and nutrient

sinks.

This outcome will be achieved through a number of diverse and innovative actions which will focus on improving the

connectivity of waterways, restoring, rehabilitating and regenerating coastal habitats and engaging with the Landcare

community, Indigenous groups, landholders, fishers and other land and sea managers in the maintenance of the

ecosystem services of coastal habitats.

Outcome 3: Improve and protect marine biodiversity, including the reduction of crown-of-thorns starfish and protection of listed threatened and migratory species, such as dugongs and turtles.

Crown-of-thorns starfish are a naturally occurring predator of coral and outbreaks have been one of the major causes

of coral death and subsequent reef damage over the past 20 years. The increase in crown-of-thorns starfish outbreaks

are thought to be linked to nutrient run-off from central and northern reef catchments. Alongside the continuing

reduction in nutrients, the direct removal of crown-of-thorns starfish is required to protect sites of high-value to the

Great Barrier Reef tourism industry.

Actions will build on existing efforts to reduce crown-of-thorns starfish on high value tourist reefs and enhance the

capacity of the tourism industry to effectively reduce this threat. This will be achieved through assistance to the

tourism industry to manage starfish predation on selected high value reefs.

The Great Barrier Reef region supports 77 species currently listed as migratory under the Environment Protection and

Biodiversity Conservation Act 1999, including dugong and turtles. These species are subject to many pressures within

and outside the Great Barrier Reef. The reduction of human pressures, such as illegal poaching and marine debris, is

key to helping ensure recovery of these species.

Actions to reduce these pressures and achieve this outcome include marine debris clean up activities, turtle

rehabilitation, investigation into illegal killing, poaching and transportation of dugong and turtle meat, and working

closely with Traditional Owners in the Great Barrier Reef catchments.

Outcome 4: Any new development maintains or improves the condition of matters of national and state environmental significance through the strategic delivery of offsets through the Reef Trust.

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Reef Trust funding will also be derived from the pooling of offset funds for actions that have a significant residual

impact on a matter/s of national and state environmental significance, after all reasonable avoidance and mitigation

measures are taken. Where offsets are required, they will be considered during the assessment phase of an

environmental impact assessment. This will provide transparency around how suitable offsets are determined for

delivery through the Reef Trust. The suitability of a proposed offset will be considered as part of the decision to

approve or not approve the proposed action.

Offset actions must improve or maintain the specific attribute of the Great Barrier Reef that is impacted by the

proposed action, when compared to pre-impact levels. For example, offsets for development activities that have

residual impacts on the water quality of the Great Barrier Reef would be required to deliver or fund projects that

improve or maintain water quality when compared to pre-impact levels. This may be achieved through consolidated

investment in catchment wide projects that aim to reduce sediment and nutrient inputs into the reef as to improve

overall water quality.

There will also be opportunities for increasing the role and participation of Traditional Owner groups in the delivery of

offset projects through the Reef Trust.

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Part 3: Implementation

A phased approach

Reef Trust funds will be disbursed in a phased approach. Phase one will provide investment for the specific

commitments articulated in the Australian Government’s Reef 2050 Plan election commitment and additional priority

actions to address key threats, with a primary focus on improving water quality.

For the subsequent phases of investment, the Reef Trust will utilise a broader approach for identifying and prioritising

investment opportunities to identify activities addressing a wider range of impacts on the Great Barrier Reef with

greatest benefit relative to cost.

Table 1: Reef Trust phased approach

Phase I investment

commencing 2014–

15

Deliver committed projects

$5 million Dugong and Turtle Protection Plan

$2 million for crown-of-thorns starfish control

Priority investment for targeted on-ground actions which go above and beyond

existing investments (with a focus on water quality)

$5 million Reef Trust Tender – Wet Tropics

$3 million Promotion of A-class grazing management practices to reduce

sediment runoff in the Burdekin and Fitzroy regions

Phase II investment

2015–16 and

beyond

Further alignment with the Reef 2050 Long Term Sustainability Plan outcomes

and targets

Comprehensive prioritisation process to identify potential projects against

objectives and outcomes

Strategic balance of short, medium and long term investments

Balance between local and more strategic, Great Barrier Reef wide investments

Balance between prescribed or identified potential projects and funding of

projects that allow for greater innovation to achieve desired outcomes.

Projects specific to offset impacts from approved actions.

Timelines

Phase 1 will commence implementation from 1 July 2014. A small number of projects will be implemented in the first

phase as set out in Table 2 (see Part 4: Priority projects and actions). Delivery mechanisms will be tested during

phase 1 before a more comprehensive investment strategy covering a broader suite of projects is developed for phase

2.

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Developing the investment strategy for phase 2

The method of investment prioritisation for subsequent phases will build on existing processes and be further

developed and refined over time guided by scientific and expert advice. It will be informed by a strategic approach that

prioritises investment to meet the Reef Trust’s overarching objectives, and builds on existing planning and funding

commitments. The strategic approach will be based on the latest peer reviewed science and will be informed by the

outcomes of the strategic assessments, Great Barrier Reef Outlook Reports, existing planning systems and policies,

such as the Reef Plan 2013, outcomes of previous and ongoing investments, 2013 Scientific Consensus Statement,

2013 Multi-Criteria Analysis Shell for Spatial Decision Support, water quality improvement plans, regional natural

resource management plans and the Reef 2050 Long Term Sustainability Plan.

Additional project ideas will be sought from the broader community to assist with the development of a phase 2

investment strategy. These project ideas will be considered and prioritised based on the principles of Reef Trust and

an agreed prioritisation process, coordinated with AIMS to bring together relevant scientific expertise to provide advice

on the phase 2 investment strategy. Timing for delivery of projects under subsequent phases of the Reef Trust is likely

to be staggered to address emerging issues and to capitalise on opportunities to meet the Reef Trust objective.

Figure 3: Indicative timeline—dates are approximate and will be finalised over time

Delivery mechanisms

Reef Trust projects will be delivered through a range of mechanisms, dependent on the specific outcomes sought,

allowing for collaboration, innovation and cost-effectiveness. Reef Trust delivery mechanisms will not be constrained

to traditional grant processes, and will employ a range of mechanisms based on the specific outcomes sought. One of

the key aims is to encourage greater use of market based instruments to ensure the achievement of the greatest

outcomes relative to cost.

The funding approach and delivery arrangement will be dependent on the public and commercial benefits of the

particular project, and will be approved by the Australian and Queensland Government environment ministers.

All investments will aim to find a balance between short and long term investments, local and strategic Great Barrier

Reef wide investments, and between prescriptive activities and support for greater innovation to achieve Reef Trust

outcomes. Investment will be coordinated and integrated with other Great Barrier Reef investments to avoid

duplication, help leverage investment and partnerships, and ensure strategic investment. Investments will also be

flexible and regularly reviewed to encourage adaptive management based on learnings and the latest emerging

information. There may be opportunities to support actions at a range of scales, and initiatives will complement

investments made through other natural resource management initiatives.

Offsets

A component of Reef Trust funding will be derived from the pooling of offset funds for actions that have residual

significant impacts on matters of national and state environmental significance. Any offsets delivered through the Reef

Trust must deliver an environmental outcome and improve or maintain the same attributes or values that are impacted

by any development action. Offsets will only be considered following all reasonable efforts to avoid and mitigate

impacts, consistent with the regulatory requirements of the Australian and Queensland Governments.

Where offsets are required, financial offsets can be contributed to the Reef Trust. Offset amounts to be provided to

the Trust will be determined through the environment impact assessment process, consistent with any relevant

legislation, policy requirements and guidelines, and in consultation with approval holders.

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Alternatively, proponents may wish to determine, through negotiation, their own offset action, or align proponent-

driven offsets to priority areas outlined in this investment strategy to provide greater visibility and promotion of

particular projects they have funded through offsets.

In cases where financial offset payments are required, these can be paid into the Reef Trust. This enables approval

holders to acquit their offset obligations on payment, consistent with any relevant conditions of approval. Offset

investments will then be managed through the Reef Trust by the Australian and Queensland Governments. This

approach will enable the strategic investment of offset funding to deliver the greatest benefit for ecosystems and other

attributes that may be subject to development impacts.

It is important to note that there are limits to the use of offsets and that the provision of offsets will not mean that

projects with unacceptable impacts will be approved. Similarly, while the use of offsets may be possible and

appropriate for certain types of values within the Great Barrier Reef, they may not be a suitable measure in all

circumstances. Decisions on the appropriateness and suitability of offsets will be made through the relevant

environment impact assessment process.

It is acknowledged that further guidance and clarification on offset delivery, decision making and application is

required. Work is being undertaken through consultation and advice with experts to ensure alignment and

consistency with relevant legislation, policy requirements and guidelines. Further detail will be made available in the

next phase of the investment strategy.

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Part 4: Priority Projects and Actions

Phase one priorities

Priority projects for investment have been determined to identify a clear pathway to achieving the objective of the

Reef Trust. The investment priorities for the first investment phase of Reef Trust are focused on the well-known

threats to the Great Barrier Reef and actions that will be effective in addressing them. The priorities have been drawn

from the best available information including:

the 2013 Scientific Consensus Statement;

GBRWHA Strategic Assessments;

Great Barrier Reef-wide risk assessment;

the Multi-Criteria Analysis Shell for Spatial Decision Support process;

basin assessments;

regional natural resource management and water quality planning; and

Great Barrier Reef Outlook Reports.

Phase one actions have been determined by the Australian Government Reef 2050 Plan election commitment, known

results of on-ground efforts over recent years and trialling delivery mechanisms that are known to ensure the

achievement of the greatest outcomes relative to cost. The actions have been deemed to meet the Reef Trust

principles of investment, provide benefits to the Great Barrier Reef and address key threats. The identification of the

priority projects has been informed by scientific, expert and community consultation, including input from AIMS and

CSIRO. These priority projects have been developed to complement other programmes and efforts to address the key

threats of the Great Barrier Reef.

The priorities for Phase 1 investment are provided in Table 2.

Table 2: Phase one investment projectsOutcomes to be achieved

Focus Project title and indicative budget

Description

Outcome 1—water quality

Addressing the very high and high risk pollutants and regions identified through the 2013 Scientific Consensus Statement and Reef Plan 2013.

1. Reef Trust Tender—Wet Tropics

($5 million)

Fertiliser use in the Wet Tropics sugar cane industry has been identified as a major source of the dissolved inorganic nitrogen (DIN) loads entering the Great Barrier Reef. An increase in these nutrients on the reef has been linked to more frequent outbreaks of the coral-eating crown-of-thorns starfish. The latest scenario modelling shows that with full adoption of current industry best practice the Reef Plan 2013 water quality target for DIN (50% reduction by 2018) will not be achieved. However, evidence is emerging that nitrogen use efficiency can be improved beyond the current industry standard without impacting on productivity. Much work is being done by the sugar cane industry, cane growers and research

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Outcomes to be achieved

Focus Project title and indicative budget

Description

organisations to find innovative ways to reduce nitrogen loss from farms. This project will build on existing investment by encouraging cane farmers to tailor fertiliser use to their property and crop - specific requirements, for example based on differences in soil and paddock topography.Specifically, it will provide incentives to sugar cane farmers to improve the efficiency of their fertiliser inputs, thereby reducing nitrogen surpluses. Decreasing nitrogen surpluses will improve nitrogen use efficiency, sustainability and profitability. A market based competitive tender (or reverse auction) is proposed to allocate funds through a procurement process. Sugar cane farmers participating in the programme can submit bids for funding to carry out practices that improve nitrogen use efficiency. Participation will be voluntary and farmers will have autonomy to determine nitrogen surplus reduction targets and cost-effective means of achieving those targets for their farming enterprise. A minimum set of practices will apply consistent with the current Smartcane Best Management Practices approach.Bids will be assessed competitively and ranked in order of cost-effectiveness. The assessment will be objective and transparent, based on a cost-effectiveness metric.

2. Promotion of A-class grazing management practices to reduce sediment runoff in the Burdekin and Fitzroy regions.

($3 million)

This project will accelerate the reduction of sediment from grazing lands in the highest priority regions (Burdekin and Fitzroy) through providing increased extension and technical support (both economic and agronomic). Targeted participants will be supported to learn from the top performers, and adopt long term sound management practices that minimise sediment loss and improve their profit. This will increase the rapid adoption of innovative farm practices that improve water quality from grazing farms impacting the Great Barrier Reef.The focus of the project will be on improving the management of properties through helping graziers to build a better understanding of their properties, identifying improved practices, and providing ongoing mentoring support for the implementation and adaptation process. A focus will be on reducing grazing pressure in high risk eroding parts of the landscape to reduce the runoff from these areas and minimise the risk of expansion and formation of future gullies and

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Outcomes to be achieved

Focus Project title and indicative budget

Description

scalded areas. This will include on-ground actions, such as stock exclusion, improving ground cover, strategic placement of infrastructure and establishing monitoring sites.The project will promote the use of A class management practices in high priority sub-catchments identified as being most susceptible to soil loss and sediment run-off to the Reef. Leading graziers who have shown adoption of A class practices will be supported to showcase their management to other graziers through a series of demonstration sites and other extension and monitoring activities. The objective will be to support more widespread adoption across the grazing community by demonstrating that practices can be implemented without impacting on productivity while at the same time reducing sediment runoff.Detail of the project delivery will be made available in the coming weeks.

Outcome 3—Species protection

Crown-of-thorns starfish control and development and implementation of a Dugong and Turtle Protection Plan to provide greater protection to dugongs and turtles from the threats of poaching, illegal hunting and marine debris

3. Crown-of-thorns starfish (COTS) control

($2 million)

Continued support for the maintenance of coral cover on high value tourist reefs. The Reef and Rainforest Research Centre and the Association of Marine Park Tourism operators to help control the current COTS outbreak through use of the recently developed single injection method to manage COTS predation on high value tourism reefs. In addition the Association of Marine Park Tourism Operators will build the tourism industry’s capacity to undertake starfish management into the future through a program of trainee and professional diver training. This will enable future Reef Trust investments to continue its primary focus on poor water quality entering the reef which is understood to cause an increase in the frequency of COTS outbreaks.

4. Specialised Indigenous Ranger programme

($2 million over 2 years)

Implement a specialised Indigenous Ranger Programme for marine conservation along the far North Queensland coast. The programme aims to strengthen compliance and enforcement and extend the reach of compliance activities to more effectively deal with issues surrounding dugong and turtle hunting. The programme will include the employment of Indigenous compliance officers, Indigenous rangers and Indigenous permit officers and the implementation of local permit systems.Funding for this project will be provided to the Department of Prime Minister and Cabinet to

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Outcomes to be achieved

Focus Project title and indicative budget

Description

deliver this project.

5. Australian Crime Commission investigation into illegal killing and poaching

($2 million over 2 years)

The Australian Crime Commission will investigate the practice of environmental crime, including illegal killing, poaching and transportation of dugong and turtle meat. The project will include four phases: understanding the nature and extent of the problem, targeting and investigation of persons of interest, arrest and prosecution, and intelligence product development.Funding for this project will be provided to the Australian Crime Commission to deliver this project.

6. Cairns and Fitzroy Island Turtle Rehabilitation Centre

($300 000 over 3 years)

Investment into the Cairns and Fitzroy Island Turtle Rehabilitation Centre will allow for the continuation of work to rehabilitate turtles suffering illness or injuries. Actions will be taken to improve and upgrade infrastructure and centre facilities, contribute to research and monitoring of turtles in the Great Barrier Reef and increase the educational capacity of the centre.

7. Marine debris clean up

($700 000 over 2 years)

Marine debris clean up activities will be supported to improve the quality of coastal and marine habitats along the Great Barrier Reef. This will include the removal of marine debris, including ghost nets, and community engagement and awareness raising. Activities will be selected and undertaken in accordance with the Reef 2050 Plan, the Dugong and Turtle Protection Plan and the marine debris threat abatement plan.Consultation will be undertaken with GBRMPA and relevant groups regarding priorities and delivery arrangements.

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Part 5: Governance Arrangements

Adaptive management—monitoring and reporting

A monitoring and reporting plan will be developed as part of the design and delivery of the Reef Trust to ensure

investments continue to meet current and emerging priorities. The following principles will guide the plan’s

development and provide the opportunity for testing and evaluating the strategy’s efficiency, effectiveness and

appropriateness and its relevance to addressing the investment priorities:

Provision of clear linkages between the longer-term objectives, outcomes, investment priorities and outputs /

areas of investment.

Identification of the assumptions and rationale that underpin the investment strategy and investment decisions.

Simple and streamlined approach to evaluation including relevant research and monitoring to identify areas for

improvement, changes in the investment strategy and investment decisions.

Process for continuous improvement of the strategy and investment decisions/ prioritisations based on the

evaluation and new information and policies.

Review of the Investment Strategy prior to the end of the first phase of Reef Trust.

The Australian and Queensland Governments will be responsible for undertaking performance monitoring and

evaluation of projects, with support from key agencies. The performance monitoring and reporting of outcomes will be

used to inform the adaptive management of the Reef 2050 Long Term Sustainability Plan, the Reef Trust and other

investments. Monitoring and reporting will be aligned with other plans and programmes being delivered in the Great

Barrier Reef and its catchments. Outcomes will be reported through the integrated monitoring and reporting

programme of the Reef 2050 Long Term Sustainability Plan including existing reef report cards.

Governance

Governance arrangements will provide for the efficient and transparent planning and management of Reef Trust

funds. Arrangements will provide for simple and streamlined processes whilst providing accountability and

transparency in planning, managing and reporting funds and outcomes.

Under this interim investment strategy, the Reef Trust will be delivered through joint arrangements between the

Australian and Queensland Governments, as set out in a Memorandum of Understanding between the two

governments. In the longer-term, consideration will be given to arrangements to attract external investment.

The Reef Trust will consolidate funds from government funding, offsets and private contributions consistent with the

objective of the Trust. Funds will be managed in accordance with relevant regulations, policies and guidelines and be

overseen by senior officials’ from the Australian and Queensland Governments. Reef Trust investment decisions will

be guided by this interim investment strategy and future iterations, as well as expert and community advice. Decisions

rest with respective ministers responsible for funding, guided by the commonly agreed investment strategy.

Community involvement

Ongoing consultation with the community on the Reef 2050 Long Term Sustainability Plan and Reef Trust is integral to

the delivery of reef health and resilience outcomes. Engagement with scientific institutions, key community groups and

the broader public has been critical in developing this interim investment strategy.

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Continued consultation will ensure the Reef Trust remains a well-informed and adaptive instrument that evolves as the

challenges it addresses evolve. Consultation approaches will be varied and ongoing throughout the life of the Reef

Trust to capitalise on specialist knowledge and advice that can be drawn from the community, science experts,

environmental organisations, relevant industries and natural resource management organisations.

The next consultative process will be a request for project ideas that align with the Reef Trust objectives and principles

that can be considered in the formulation of the phase 2 investment strategy.

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