Carbon on Country partnerships

Carbon on Country is an initiative that seeks to support Aboriginal landholders to take up opportunities to deliver carbon abatement alongside benefits for Country and community.

Carbon on Country is part of the Primary Industries Productivity and Abatement program. This program forms part of the NSW Government’s Net Zero Plan. It focuses on supporting landholders to reduce their emissions and participate in carbon farming activities that deliver multiple benefits.

A Carbon on Country partnership will be a formal partnership between the NSW Department of Climate Change, Energy, Environment and Water and a NSW Aboriginal organisation. The partnership will support the design, registration and implementation of a mixed species environmental planting project under the Australian Carbon Credit Unit (ACCU) Scheme. The department will work with eligible Aboriginal organisations to make sure projects meet the needs of Country and community. The Aboriginal organisation will own the project and all carbon credits generated.

Only NSW Aboriginal organisations that own the land that the project will take place on can apply.

Organisations must also have the legal right to undertake an Environmental Plantings project and receive Australian Carbon Credit Units (ACCUs). Eligible organisations include Local Aboriginal Land Councils, Registered Native Title Body Corporates, Traditional Owner Groups, Aboriginal Corporations and equivalent Aboriginal Community Controlled Organisations.

Funding will be available for tree planting projects that deliver carbon outcomes alongside other benefits. More specifically, funding will be available for projects that have been:

• successful in the Carbon on Country EOI process
• through the co-design process with the department
• registered and approved under the Environmental Plantings method under the Australian Carbon Credit Unit (ACCU) Scheme.

Australian Carbon Credit Units (ACCUs) are a financial product created and issued by the Clean Energy Regulator. They are tradeable units that can be sold for income or retained to offset one's own emissions.

This method is one of the most accessible for Aboriginal organisations. It allows for various traditional practices to be included and has less restrictive eligibility requirements compared to some other methods. The method is designed for landholders to implement their own mixed species environmental planting carbon project, with straightforward monitoring and reporting processes. Most importantly, this method can deliver cultural benefits and help restore Country.

A new Environmental Plantings method will be made available in late 2024. It will be similar to the existing method, but with additional proposed benefits including opportunities to harvest up to 10% of seed and fruits.

Applicants should prepare their expression of interest (EOI) based on the requirements of the existing 2014 method.  We will work with successful EOI Carbon on Country partners to ensure that their proposed projects comply with the new Environmental Plantings 2024 method.

See Draft Reforestation by Environmental or Mallee Plantings method 2024 for more information.

The draft 2024 Environmental Plantings method proposes allowing project proponents to collect seeds and grow seedlings before registering their project.

Check with Elders and local knowledge holders. 

You can also download the Restore Trees NSW app to learn about vegetation communities including plant and animal species specific to your project.

It is available as a web-based tool here: https://restoretreesnsw.app

Or you can download the app to your phone/ tablet:
 

Carbon plantings are generally permissible in areas zoned Primary Production. However, it is recommended that you contact your local council to ensure your project plans align with Local Environmental Plans and/or zoning regulations.

The department will fund up to 90% of your carbon project implementation costs, with up to $250,000 available per project. Funding will depend on the size and complexity of the project. There is a minimum 10% co-contribution requirement.   

Your project will become eligible for implementation funding after the co-design process, once the project has been registered with the Clean Energy Regulator.  

Any payment of funds is subject to the department making a funding offer and the execution of a funding agreement. 

If your expression of interest (EOI) is successful you will be invited to participate in the co-design phase. We will work with you to prepare your project for registration under the Australian Carbon Credit Unit (ACCU) Scheme.  

During this phase the department will cover the cost of reasonable legal, financial and technical fees specific to your project. 

During the co-design phase the department will provide access to financial, legal, governance and technical advice and expertise to help you prepare your project for registration. We will work with you through steps 1 – 7 of the carbon project cycle as shown in the designing your carbon project factsheet. The timeframe for the co-design phase is about 4-6 months. 

The department will work with you to ensure that your project meets the Australian Carbon Credit Unit (ACCU) Scheme requirements in the early stages. If your project is not approved, we will work with you to address registration requirements.

There is no penalty for organisations that withdraw prior to entering a funding agreement. However, if you stop a project after funding starts, any unspent funds may need to be returned.

If you withdraw your project from the ACCU Scheme, what you need to do depends on whether carbon credits have been issued or sold. If no credits have been issued for the carbon stored by the planting there is no penalty. If carbon credits have been issued but not sold, they will need to be returned to the Clean Energy Regulator. If credits for your project have already been sold, the project owner must buy the same number of Australian Carbon Credit Units (ACCUs) to compensate for the lost abatement.

A pre-recorded information session is available on our website.

An organisation can only submit one expression of interest (EOI) application for a Carbon on Country partnership.

You will receive an automated email acknowledging receipt of your application through the SmartyGrants system. If you do not receive an email within 24 hours of submission, please notify us at [email protected].

If a natural disaster affects your project, you could lose some or all of the planting and the carbon that was stored in it. If this happens, you will need to notify the regulator within 60 days and show that you followed your permanence plan and took steps to reduce the impact. Depending on the damage, you may need to plant more trees, or there may be a pause before additional carbon credits are issued. We will work with you to develop your permanence plan and understand the process prior to registering your project.

Yes, you are encouraged to discuss your expression of interest (EOI) with local knowledge holders, ecologists, government agencies such as Local Land Services or other third parties who may be able to provide advice regarding plant species, costs, and/or co-benefits. 

Under the principles of Free, Prior and Informed Consent partnering Aboriginal organisations can withdraw from the partnership during the co-design phase without penalty. This can be done by writing to the department stating their intent to leave and the reasons why. 

If there is no creation of legal or equitable interest in the land, then a carbon project wholly owned by the Local Aboriginal Land Council (LALC) is unlikely to trigger a land dealing. Regardless, the department will work with LALCs to ensure access to independent legal advice. The department supports regular consultation with NSWALC to ensure projects are compliant with regulations and meet community and board requirements.

Land that already contains native vegetation and provides good habitat may qualify for funding under an agreement with the Biodiversity Conservation Trust. Visit www.bct.nsw.gov.au for more information about the full range of voluntary biodiversity stewardship and conservation agreements provided by the Trust.

Yes, a project under the Draft Environmental Plantings method 2024 may co-exist with native title, as restrictions in the method do not prevent the exercise of native title on the project area. However, additional considerations may apply. If Native Title has been determined to exist you will need to gain Eligible Interest Holder consent from Native Title holders prior to registering your project. You may need to follow certain processes (under the ‘future act regime’ in the Native Title Act) before carrying out your project whether native title has been determined or not. If your EOI application is successful, we will support you to access legal advice and facilitate discussions with all eligible interest holders and to complete any processes required, to address native title. 

The department recognises the benefits of cultural burning and values traditional cultural and ecological landscape management practices. In this case, it is essential that mixed species environmental planting carbon projects follow the rules set by the ACCU Scheme. This means that a cool burn could be applied as part of ground preparation prior to planting. Under the Environmental planting method, plants must be planted using seedlings and / or direct seeding. Once the planting is established, cultural burning techniques may be applied providing that any reduction in canopy cover or loss of trees is accounted for under the method rules. We will work with partners and the Clean Energy Regulator to maximise opportunities to include cultural practices important to your organisation and community.

To be eligible you must be an Aboriginal or Traditional Owner group that owns or has legal right to the land.

Please refer to the guidelines for more information on eligibility.

No. Projects must be delivered within the eligible regions in NSW to receive this funding. Please refer to the guidelines on our website for a map of the eligible regions.

As a first step, please review the guidelines and other information provided. The Net Zero Land team can assist with mapping to help you determine project suitability. 

Contact [email protected] for an online assessment and support.

A link to the application form is available on our website. Once fully completed, application forms and accompanying documents can be submitted via the SmartyGrants portal.

The application is a one-step competitive expression of interest (EOI) process which consists of a combination of eligibility and merit criteria.

Once you submit your application, the department will assess your eligibility. If you are deemed eligible, your application will then be assessed against the merit criteria by an assessment panel. If your EOI application is successful, you will then be invited to join the co-design phase.

An assessment panel of subject-matter experts will review all eligible expression of interest (EOI) applications against the merit criteria and recommend highly scored applications to progress to the co-design phase. 

Yes. If you are unsuccessful, we will advise you in writing with details on how to seek feedback on your application.

The deadline is binding. Applications submitted beyond the deadline cannot be considered. There may be more opportunities in the future.  

The department will fund up to 90% of your carbon project implementation costs, with up to $250,000 available per project. Funding will depend on the size and complexity of the project. There is a minimum 10% co-contribution requirement.  

You can use additional funding from your own organisation or other parties (third parties) to deliver your project. This can include non-cash contributions such as volunteered time. You must clearly detail what this funding is in your application.

The NSW Department of Climate Change, Energy, the Environment and Water has legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information. When collecting your personal information, we will provide you with a privacy statement that details how this information will be managed in accordance with privacy law.