New Funding in Australia Supports Tree Planting and Carbon Credit Projects

Victoria, Australia, has launched a major funding programme to help landowners establish forestry projects that can generate carbon credits. The Victorian Trees on Farms Programme (VTOF), announced this week, will provide financial support for both plantation forestry (PF) and native environmental plantings (EP).

Landscape view of forestry and farming project - part of Victoria’s Trees on Farms initiative. AI generated picture.

Under the scheme, plantation forestry projects can receive AUD 4,000 (USD 2,595) per hectare, while native plantings are eligible for $1,310 (AUD 2,000) per hectare. Funding caps apply—PF projects can secure up to $52,500 (AUD 80,000), and EP projects up to $26,200 (AUD 40,000 ).

Projects supported by the VTOF can be registered under Australia’s approved Australian Carbon Credit Unit (ACCU) methods. EP projects must be at least five hectares and deliver a carbon sequestration rate of five tonnes of CO₂ per hectare each year over 25 years. PF projects require a minimum of three hectares and must be located in areas with an annual average rainfall of at least 500 millimetres.

The initiative replaces and streamlines two earlier state programmes—the Victorian Carbon Farming Programme and the Gippsland Farm Forestry Programme. The latter, launched in 2024 with $ 980,000 (AUD 1.5 million) in funding, covered around half the costs of establishing and managing farm forestry plantations in its early stages.

To be eligible for the new grants, applicants must either own the land outright or have formal approval from the owner. They must also demonstrate that the project is ready to move forward, either by engaging a forestry service provider or proving relevant experience.

Victoria’s Department of Energy, Environment and Climate Action (DEECA) says the programme is designed to promote both environmental restoration and economic benefits for landowners. By combining direct financial support with opportunities to earn carbon credits, the VTOF is expected to accelerate nature-based climate solutions while boosting rural productivity.