PART FOUR

STATE OF THE ENVIRONMENT

4.2 LAND AND BIODIVERSITY

LB0 Introduction

Key Findings

• Despite improved understanding of environmental issues and

processes, the policies and initiatives implemented in recent

decades, and extensive investment in the environment, the

condition of Victoria’s land and biodiversity has continued to

decline – Victoria has the highest proportion of sub-regions

in Australia considered to be in poor condition. A lack of coordinated

data collection and reporting arrangements limit the

ability to report on individual land and biodiversity resources at

a statewide level.

• The study of climate change impacts on Victorian land

and biodiversity is in its infancy and there is a high level of

uncertainty about both the nature of climate change and its

likely effects on Victoria’s flora and fauna. Natural ecosystems

are highly vulnerable to 1.5–2°C of warming. Climate change

is likely to drive changes in land use that will require political

and managerial decisions about the relative values of terrestrial

systems and uses of land.

• Victoria’s historic use of land has left a legacy of highly cleared

and fragmented native vegetation over much of the State.

Good quality, relatively intact native vegetation only remains

in areas that have not been extensively modified. Native

grasslands are Victoria’s most depleted and most endangered

vegetation classes; however, Victorians continue to develop

and modify grassland ecosystems. High levels of vegetation

clearing may constitute the crossing of an ecological threshold,

beyond which rapid change occurs and ecosystems may not

recover.

• Human activities continue to cause declines in the condition of

native flora and fauna. Future decisions will reflect the choices

of Victorians about the attributes of land and biodiversity that

they most value. Continuing population growth, urbanisation

and consumption may hinder achievement of land and

biodiversity management objectives. The high degree of

urbanisation of the Victorian population means that the

environmental impacts of societal lifestyle patterns may go

largely unrecognised.

• A lack of co-ordinated data collection and reporting

arrangements limits the ability to assess and report on the

condition of Victoria’s land and biodiversity at statewide level.

• Victoria’s current legislative and institutional framework for land

and biodiversity conservation has been developed over many

years and is in need of reform and consolidation. However,

Victoria has in place a range of structures and processes that

will form the basis of future responses to land and biodiversity

concerns.

• A range of policy options, including regulation and

enforcement, market-based instruments, education and

research, is needed to engage a broad spectrum of Victorians

in management and protection of land and biodiversity

resources.

Victorian land

and biodiversity assets

Victoria, a land area of approximately 22.7

million ha with a coastline of 2,000 km1, is

a complex array of landforms produced

over a period of 520 million years.

The landscape has been substantially

modified by human activities. Much of the

recognisable shape of Victoria was formed

during the last 150 million years. During

this period the coastal hinterland was

uplifted to form the Great Dividing Range,

and the area to the north-east formed the

Murray basin2. Most recently, volcanic

eruptions have shaped the Victorian

landscape. Within the last two million

years, about 400 volcanoes produced

extensive basalt flows over much of

western Victoria3.

These physical characteristics underpin a

diversity of landforms and soil types that

allow Victoria’s land area to support a

greater range of broad ecosystem types

than any other area of similar size in the

rest of Australia4. These ecosystems range

from alpine woodlands to dry Mallee

grasslands and include inland waters,

coastal environments, wetlands, heaths

and grasslands.

Victoria is classified into 28 bioregions

(see Figure LB0.1) that capture the

patterns and ecological characteristics

in the landscape. Bioregions are the

broadscale mapping units for biodiversity

planning and may extend over State

boundaries. Many of Victoria’s bioregions

have been heavily cleared, leaving around

45% of Victoria’s original vegetation cover.

Four of Australia’s five most cleared

bioregions occur in Victoria5.

Within these broad bioregions, Victoria

has nearly 220 ecological vegetation

classes (EVCs) with a further 424 EVC

mosaics, complexes and aggregates.

EVCs are a means of classifying native

vegetation through a combination of

species composition, life forms and

ecological characteristics, and through an

association with particular environmental

attributes such as soil type and rainfall.

EVCs may occur over more than one

bioregion.

Victoria has a diverse indigenous terrestrial

biodiversity including some 3,140 species

of vascular plants, 900 lichens, 750

mosses and liverworts, 111 mammals,

447 birds, 133 reptiles and 33 amphibians.

Victoria also has a large number of

invertebrates, fungi and algae species,

many of which are yet to be described.

Terrestrial ecosystems provide important

services to Victorians (see Part 1

Introduction for discussion of ecosystem

services). Healthy ecosystems support

production of food, fibre and timber, clean

air and water, and a regulated climate.

Healthy soils maintain fertility by cycling

nutrients and decomposing wastes.

Biodiversity is integral to ecosystem

function and also provides resources

for human use, such as compounds for

pharmaceutical use. Healthy land and

biodiversity are also important in their own

right as places for relaxation and sources

of cultural, spiritual and intellectual

satisfaction6. Degradation of land and

biodiversity resources limits delivery

of these services. Thus, maintaining

healthy ecosystems is essential for the

continued provision of services on which

all Victorians depend.

Ecosystem services are not specifically

valued in the economy and are public

goods, so there has been limited incentive

to conserve the ecosystems that provide

them. Recent development of markets

for ecosystem services in Victoria now

provides land owners with the opportunity

to derive income from the provision of

ecosystem services (see also Part 5 Living

Well Within Our Environment).

The global cost of environmental

damage and lost species has been

estimated at US$2.1–4.8 trillion annually7

(approximately A$2.2–5.1 trillion). The

costs of repairing degraded ecosystems

are difficult to estimate but are reflected

in the economic values of the services

provided by healthy ecosystems. The

annual value of four key environmental

services provided by native insects in

the USA (dung burial, pollination, pest

control and recreation, i.e. fishing, hunting,

bird watching) has been conservatively

estimated at US$57 billion8 (approximately

A$60 billion). Reduction in climate

regulation services is adding to climate

change from anthropogenic sources. The

economic and social costs of climate

change threaten a global economic

crisis worse than that produced by the

Depression of the 1930s9.

Terrestrial ecosystems are intimately

connected to the rivers and streams that

flow over them, the coastal areas and

the marine environment. The condition

of terrestrial systems has implications for

these aquatic systems, explored in Part

4.3 Inland Waters and Part 4.4 Coasts,

Estuaries and the Sea.

Prior to European settlement Victoria was

home to Aboriginal people who developed

an intimate connection with the land over

thousands of years. The land continues

to hold great cultural significance for

Victoria’s indigenous people. Aboriginal

people modified landscape to provide for

their needs by practices such as ‘firestick

farming’, or burning used to manipulate

the plant and animal species composition

of an area and facilitate hunting10. At

the time of European settlement the

connection of indigenous people to the

land was not recognised and all land was

declared as belonging to the Crown. Land

was sold to settlers, becoming private

property. Clearing of the land, which was

considered to ‘improve’ it, was a condition

of ownership.

Public land now occupies approximately

39% of Victoria11 and is used for

biodiversity conservation purposes,

timber harvesting, recreation and water

catchment. State forest accounts for

approximately 14% of Victoria and is

concentrated in the east of the State.

Approximately 1.9 million ha of State

forest (60% of total State forest area) is

available for timber harvesting. Public land

allocated to nature conservation occupies

approximately 17% of Victoria, mostly

in National and State Parks, Wilderness

Areas and Nature Conservation Reserves12

(see section LB2: Contemporary land use

change).

The remaining 61% of Victorian land

is privately owned and much of this is

farmed. Agriculture is the predominant

land use in Victoria, occupying 13.25

million ha or approximately 58% of the

total area. It contributes $8.7 billion to the

Victorian economy13, accounting for 3.5%

of Victoria’s Gross State Product14 and

approximately 35% of Victoria’s export

income (see Part 3.2 Water Resources).

The key agricultural products are beef,

dairy, wool, grain crops, and fruit and

vegetable crops. Agricultural production

occurs mainly in the flatter and more

accessible areas in western and northern

Victoria (see section LB2: Contemporary

land use change, Indicator LB9 Land use

types in Victoria). Melbourne occupies less

than 1% of Victoria’s land area but about

75% of Victorians live in metropolitan

Melbourne.

Victoria’s agriculture was established

initially on the most fertile soils and

for the most part is rain fed. However,

agricultural production is supported

by ongoing additions of synthetic

fertilisers and, in some areas, irrigation.

Fertilisers, pesticides and the fossil fuels

from which many of these are derived,

have traditionally been low-cost inputs.

However, the price of fertiliser has

increased strongly during the past two

years in response to global supply and

demand factors as well as an increase

in the price of fossil fuels. Nitrogenous

fertilisers are also associated with

emission of the greenhouse-intensive

gas, nitrous oxide. Continued reliance on

these inputs to support productivity gains

in agriculture is becoming decreasingly

sustainable, both environmentally

and economically. Continued gains

in agricultural productivity, supported

by artificial soil fertilisation, appears to

be masking ongoing and cumulative

environmental degradation.

Objectives

• To maintain and enhance Victoria’s land

and biodiversity assets

• To increase the extent and improve the

condition of Victoria’s native vegetation

• To improve the conservation status of

Victoria’s native species

• To retain, or, where required, reestablish,

robust landscapes that buffer

against the impacts of climate change

• To ensure sustainable land

management under a range of land

uses

• To ensure that land use changes do not

place further pressure on biodiversity

and that changes produce a net positive

impact on biodiversity

Overall Condition

Condition of land

There is no simple measure of the

condition of land per se; however, Victoria

has the highest proportion (48%) of

sub-bioregions in Australia considered

to be in poor landscape condition. This

is assessed on the basis of the extent

and condition of native vegetation, the

associated increase in threatened species,

and threats to ecological function such

as salinity15. The areas of poor landscape

condition correspond to areas of

extensively cleared and fragmented native

vegetation.

Native vegetation is fragmented over

approximately two-thirds of Victoria

and is under continuing pressure from

intensification of agricultural production

and urban expansion. Native vegetation

management policy was substantially

reformed in 2002, with the aim of

achieving a ‘Net Gain’ of native vegetation

through reduced clearing, better offsetting

of permitted clearing, protection of existing

vegetation and biodiverse revegetation

activities. This goal has not yet been

achieved. Although vegetation gains have

exceeded losses on public land, native

vegetation continues to be lost on private

land. Victoria continues to lose native

vegetation at a rate of approximately 4,000

ha per year16.

Land use in Victoria varies markedly

between public and private tenures. Public

land is dominated by parks and State

forests, while private land is dominated by

agricultural and urban uses. Private land is

changing towards a broader mix of uses

in response to demographic change, and

the intensity of agricultural production is

increasing.

The susceptibility of Victorian soils to

structural decline and erosion varies

across the State with soil type and

topography. The risk of water erosion is

generally greater on steep, mountainous

land in eastern Victoria, while wind erosion

is associated with the flatter land and

sandier soils of the Mallee and northern

Wimmera in western Victoria. Management

of soil to reduce erosion has been a

feature of Victorian cropping systems over

the past 20–30 years. Susceptibility to soil

structural decline is widespread but the

risk can be minimised by the management

of soil for biological activity and organic

matter accumulation.

Changed vegetation structure has altered

the hydrology of Victorian landscapes,

increasing drainage to groundwater and

resulting in salinisation and acidification

of soils in some regions. The extent of

dryland salinity is considered to have

peaked at around 240,000 ha due

to a combination of improved land

management and prolonged low rainfall.

The extent of accelerated acidification,

however, is unknown and potentially

expanding.

Condition of biodiversity

Assessment of the condition of Victoria’s

biodiversity is set against the backdrop of

a global crisis in biodiversity. The Victorian

Government’s recent Green Paper, Land

and biodiversity in a time of climate change

(p. 3), states that:

“There is increasing scientific evidence

and consensus that the world is facing a

biodiversity crisis.

The first Millennium Ecosystem

Assessment unambiguously showed that

humans have changed ecosystems over

the past 50 years in a way unprecedented

in any other period of human history. It

concluded that nearly two-thirds of the

critical services nature provides to humans

are in decline, and warned we face even

greater loss of biodiversity over the next 50

years.

In 2007, the United Nations Environment

Program again highlighted the crisis in

biodiversity. In its fourth Global Environment

Outlook report it warned we are either on

the cusp or have already entered a period

of mass extinction the like of which has

not been seen since the demise of the

dinosaurs. It warns that climate change will

lead to the first wave of mass extinctions

caused by humans”.

In some parts of Victoria, specifically the

well-vegetated and mountainous eastern

highlands and the Mallee country in the

north-west, ecosystems remain relatively

intact, with vegetation condition and

quality considered to be high. However,

even in the relatively intact landscapes

managed by Parks Victoria, the condition

of biodiversity is variable due to previous

land use and disturbance such as logging

and grazing as well as the impact of a

range of current and ongoing threats

from invasive species (weeds and pest

animals), altered hydrology, inappropriate

fire regimes, grazing pressure and

fragmentation.

The bioregions most suitable for urban

development and agriculture, including

the Victorian Volcanic Plains and Riverina,

have not only suffered the greatest loss of

vegetation, but the quality of the remaining

vegetation is amongst the lowest in the

State. Furthermore, these regions are

characterised by high levels of vegetation

fragmentation and low connectivity,

which, combined with the small size and

irregular shapes of much of the remnant

vegetation, further limits the ecological

functionality of these landscapes. The

extensive and ongoing clearing of the

once-widespread native grasslands

and grassy woodlands, in particular,

has resulted in these ecosystems being

classified as endangered.

Some 157 animal species are considered

threatened in Victoria, while a further 24

have become extinct. In addition, 778

plant species are listed as threatened

in Victoria, with 51 extinctions17. Some

populations of threatened species

continue to decline, while others appear

to be recovering. There is a large number

of species whose population trend is

inconclusive, unclear or variable. These

species require ongoing monitoring.

Considerable re-establishment of habitat

and restoration of environmental flows will

be required to significantly improve the

conservation status of many species and

regional ecosystems18.

Knowledge of the status of invertebrates is

extremely poor, hampering assessments

of conservation needs. Furthermore,

surveys of flora and fauna distributions

have declined over the past decade,

limiting the ability to track increases

or declines in species abundance or

changes to distribution.

Pest species, particularly weeds, continue

to establish in Victoria and pose a major

threat to biodiversity, landscape function,

primary production and landscape

aesthetics.

Pressures on Victorian

land and biodiversity

The choices that Victorians have made

about land use have produced a modified

landscape over much of Victoria. The

extent of modification is least in the

forested areas of eastern Victoria,

although the use of these ecosystems

for timber production and recreation

certainly creates disturbance. The greatest

modification has occurred in urban

areas, where topography is altered to

accommodate roads and buildings, and

land surfaces are paved to control run-off

and drainage and to facilitate transport.

Victoria’s agricultural land has also been

modified to suit the production of food and

fibre for the domestic and international

market.

All of Victoria’s ecosystems provide

services for nature and society; however,