Summary
This guide provides general guidance to private landholders and investors in North East NSW who were interested in generating income from sequestered carbon in planted forests under the Australian Government’s Emissions Reduction Fund (ERF). It outlines the carbon cycle, carbon sequestration in plantations, carbon credit generation, cost-sharing opportunities, and summarised associated tax implications.
The guide explains that Australian Carbon Credit Units (ACCUs) used under the ERF had the potential to offset some of the upfront and ongoing costs of plantation establishment. It describes the five stages of participation in the ERF: assessing project feasibility, selecting an appropriate methodology, registering the project, implementing the project and claiming ACCUs, and generating carbon income through auctions or private sales.
The guide estimated that a single-hectare plantation with a growth rate of five tonnes per hectare per year could sequester approximately 60 tonnes of carbon over 25 years and highlighted how scaling up operations could support Australia’s emission reduction goals.
NB: This publication is intended to provide reference material for general information purposes only. It does not constitute legal or other professional advice.
Acknowledgement of funding
This report was commissioned by the North East NSW Regional Forestry Hub with funding from the Australian Government, Department of Agriculture, Fisheries and Forestry.
Disclaimer
Reports prepared for Regional Forestry Hubs, and any recommendations contained in the reports, are provided as received by the Hub and are not endorsed positions of the Hub. They do not constitute Australian Government policy.
