The consultancy report has been prepared on the South Esk and the Macquarie river catchments in Tasmania on the request of Primary Industries, Parks, Water and the Environment (DPIPWE) have asked to prepare a consultancy report. The purpose of the consultancy report was to investigate the existing ecosystem services at the South Esk basis and the Macquarie river basin. The challenges are investigated and then based on a demonstration of Market based instruments, the appropriate instrument for addressing the issues is presented. The report has been structured into four major sections: section 1: discussion on ecosystem services and nature capital in the catchment areas, section 2: discussion on the market based instruments, section 3: development of appropriate market based instrument and finally section 4: assessing instrument based on appropriateness of issue, justifying the instrument and some more insights.
South Esk Basin and Macquarie river catchments are present in Tasmania. A river catchment area or a basin is the place where surface water from rains on higher lands, hill, mountains etc., or the melting of snow converges to pool at a much lower elevation which has a higher temperature. The exit of the basin usually converges with some other water body like a lake and reservoir etc. Given this context on catchments, the Macquarie river catchment area is understood as covering approximately 3800 in land kilometres and occupies a vast part of the Tasmanian midlands. The South Esk River area is seen to be approximately 3,300 square kilometres and occupies just as much a land space as the South Esk basin. Catchment services and other water services are provided as ecosystem services by these two areas. The purpose of this consultancy report is to present the ecosystem services and natural watershed of both the South Esk Basin and McQuarrie and present challenges and improvements being carried out for both watersheds. A thorough range of design is considered in terms of applicable market based instruments and an MBI that could be appropriate for the problem at hand is developed. The issues at hand in the ecosystem services are presented. An appropriate MBI instrument is constructed as a strategic way to handle the issues .