Summary
This project aimed to assess how Australia’s Emissions Reduction Fund (ERF) could support plantation forestry expansion across the Green Triangle region and improve the economic viability of new forestry investments. The study used the Full Carbon Accounting Model (FullCAM) and spatial economic modelling to estimate carbon sequestration potential, Australian Carbon Credit Unit (ACCU) generation, and financial returns from both new plantation establishment and conversion of existing plantations.
The analysis found that carbon markets could significantly improve the attractiveness of plantation investments, particularly under higher carbon prices. Existing plantations were estimated to sequester more than 133 million tonnes of carbon dioxide equivalent over the next century, with substantial economic value attached to stored carbon. The study identified significant opportunities for hardwood plantation expansion and for converting short-rotation hardwood plantations to long-rotation softwood plantations under the ERF. It concluded that carbon markets could help overcome barriers such as high land values, establishment costs, and long investment timeframes, while supporting future timber supply, regional development, and emissions reduction objectives
Acknowledgement of funding
This report was commissioned by the Green Triangle 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.
