Australia Launches Largest Forestry Carbon Project to Date

A groundbreaking forestry initiative could soon reshape Australia’s carbon market landscape. An application recently submitted to the Clean Energy Regulator outlines a plan to launch the country’s largest forestry-based carbon project to date, spanning 30,000 hectares of previously cleared land.

Over the course of three years, native trees will be planted on this vast area, meeting the criteria for Environmental Plantings (EP) projects, which require sites to have been without forest cover for at least five years. This large-scale effort is expected to generate up to 5 million Australian Carbon Credit Units (ACCUs) during its crediting lifetime.

According to market analysts, EP-generated credits currently command the highest price among Australian carbon units, valued at approximately $34.50 (AUD 54) per tonne of CO₂ equivalent. As demand for premium carbon offsets intensifies, these credits represent a strong economic opportunity for developers and investors alike.

The proponent of the project is already preparing for additional expansion, with plans to develop a further 4,000 hectares under EP and plantation schemes by 2025. This strategic growth reflects a broader trend toward nature-based climate solutions that not only sequester carbon but also restore degraded ecosystems.

One notable move that highlights increasing industry alignment came through a newly signed agreement with mining major BHP—an entity operating under Australia’s Safeguard Mechanism. The partnership underscores the accelerating connection between carbon offset generation and corporate emissions reduction strategies.

While no public comment has been made by the project developer, their existing portfolio already includes a range of EP and Human-Induced Regeneration initiatives, as well as Australia’s only forestry project certified by the Gold Standard. That project—the Yarra Yarra Biodiversity Corridor—is restoring 200 kilometres of habitat and is forecasted to remove 1.1 million tonnes of CO₂ equivalent over the next 50 years.

With scale, verification, and corporate demand all converging, Australia’s carbon market is entering a new phase—one where large, verifiable reforestation efforts take centre stage.