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Forests and carbon

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This document is part of a series of four guidance reports that cover topics related to small-scale farm forestry, private native forestry, and Indigenous managed forest lands. Learn more about the other reports and documents via this link.

As forests grow, they accumulate and store carbon. When forests are managed to improve their health and productivity, they grow faster, delivering better carbon sequestration outcomes. Wood stores the carbon it sequesters from the atmosphere in the wood products it’s used to make such as paper, house framing and furniture.

In Australia, it is possible for the carbon stored in plantation forests to generate revenue for the forest owner through the Emissions Reduction Fund. This is made possible through either:

  • Carbon Credits (Carbon Farming Initiative – Plantation Forestry) Determination 2022,
    commonly referred to as the plantation method; or
  • Carbon Credits (Carbon Farming Initiative— Measurement Based methods for New Farm Forestry Plantations) Methodology Determination 2014, or the new farm forestry method.

This fact sheet provides an overview of how the plantation and new farm forestry methods work to reward growers for establishing and managing plantations that store carbon.


Pat Groenhout, Jill Roscoe & Tuesday Phelan, Greenwood Strategy Solutions Pty Ltd.

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