Carbon projects are creating new opportunities for Australian farmers, regional communities and land managers, bringing investment into agriculture, diversifying farm income, supporting jobs and delivering environmental benefits.
Carbon projects are diverse and increasingly form part of broader farm and land management strategies. Carbon farming is not a single land-use activity. It encompasses practices from soil carbon and improved grazing management to regeneration, avoided clearing, savanna fire management and plantation forestry. Many projects complement food and fibre production while improving land condition and productivity.
A credible, high-integrity ACCU scheme is essential to realising these benefits. Carbon farming can only attract durable investment and maintain community confidence when credits represent genuine, measurable and lasting climate outcomes, supported by robust methods, transparent processes and appropriate safeguards. Strong integrity and continuous improvement of the ACCU scheme underpin market confidence and ensure farmers, investors, businesses and communities can trust the outcomes delivered.
- Carbon projects strengthen Australian agriculture
Carbon projects can provide landholders with diversified income, improved cash flow and greater resilience alongside traditional food and fibre production.
Many carbon activities complement farm businesses, improving land condition, productivity and resilience. Projects are often undertaken on only part of a property and do not lock up farmland. For example, soil carbon can coexist with dairy production on the same paddock, or revegetation with beef grazing, while better land condition supports food and fibre production.
“Carbon farming should not be viewed as agriculture versus carbon. For many Australian farmers, carbon projects are another tool in the farm management toolbox — helping diversify income, improve land condition and build resilience while continuing to produce food and fibre.” — Sasha Courville, CEO, Carbon Market Institute
A recent report by The South West Queensland Regional Organisation of Councils (SWQROC) focused on the South West Queensland region as it has one of the highest uptakes of registered vegetation projects (17%) compared with other parts of Australia and revealed one in three properties in the region derive a source of additional income from carbon farming. It also found carbon farmers reported fewer pests and weeds, greater biodiversity, and improved bushfire management, alongside improvements in vegetation, profitability and soil health.
- Carbon projects contribute to regional economic development
Carbon projects bring new investment and income into regional communities, diversifying farm revenue and creating demand for local services and employment.
This includes jobs in land management, agronomy, fencing, revegetation, nurseries, machinery, monitoring and environmental services. Carbon markets also create opportunities for Indigenous economic development through Indigenous-led projects, ranger employment, land management and new income from Country.
The benefits extend beyond individual landholders to regional businesses and communities. Recent modelling from Macdoch Australia estimates carbon farming could generate up to $5.5 billion in net annual income for Australian agriculture, with carbon drawdown potentially occurring across 15% of Australia without reducing food production.
2. Carbon projects can strengthen biodiversity outcomes
Well-designed carbon projects can deliver benefits for both climate and nature.
Projects restore vegetation, improve soils and habitat, protect waterways and strengthen landscape resilience. Importantly, carbon projects involve active land management, including requirements in many project types to control pests and invasive species, manage against fire risk and maintain the land in accordance with the project’s management commitments. For example, regeneration projects which continue but modify grazing practices, are restoring Australia’s highly degenerated rangelands which are fragile ecosystems taking up over 75% of our land mass.
“Carbon markets can put a value on environmental stewardship that farmers and land managers have often undertaken without an associated income. When carbon projects are well designed and actively managed, they can deliver benefits for climate, biodiversity and the health of the landscape.” said Sasha Courville, CEO, Carbon Market Institute.
3. Private capital is driving investment in Australian agriculture
Carbon markets and carbon farming are attracting private capital into Australian agriculture and land management. The Safeguard Mechanism provides a critical demand driver for Australian carbon credits, creating a market signal for emissions reduction while enabling investment to flow into projects beyond industrial facilities, into rural and regional communities.
Public finance has an important but different role to play. Institutions such as the Clean Energy Finance Corporation (CEFC) can help de-risk investments in new areas, demonstrate new models and crowd in private capital investment at scale.
“Australia has an opportunity to harness private capital to invest in healthier landscapes and more resilient regional economies. High-integrity carbon markets provide a mechanism to connect that capital with farmers and land managers who are delivering measurable climate and environmental outcomes.” said Kerry Schott, Chair, Carbon Market Institute.
The Carbon Market Institute supports high-integrity carbon markets, transparent land-use decisions and appropriate safeguards for productive agricultural land, whilst recognising the important contribution that carbon farming is already making.
Australia can remain a major food-producing nation while attracting private investment into healthier landscapes, stronger farm businesses, regional economies and emissions reduction. “Carbon farming is not a land grab — done well, it is an investment in the future of Australian agriculture and regional Australia.” said Sasha Courville, CEO, Carbon Market Institute.
