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NSW Climate and Energy Action
NSW Climate and Energy Action

Planning a carbon project

The NSW Government supports farmers and land managers in adopting carbon farming, developing carbon projects and participating in the carbon market as part of its commitment to reaching net zero by 2050.

Carbon projects on your land can create value from the carbon they sequester (store) in trees and soils or the carbon emissions they avoid. This value can be financial in the form of generating carbon credits.  

A carbon project must be registered with the Clean Energy Regulator (CER) under the Australian Carbon Credit Unit (ACCU) Scheme to trade carbon credits in the carbon market.

What you need to consider before planning a project

Carbon projects benefit your land, farm management and the environment. Before committing to or starting a project, consider these key factors.

The right fit

You must consider whether a carbon project suits you and your enterprise, such as whether it aligns with your long-term motivations and objectives for your property, business and family.

Duration of the project

Some carbon projects require at least a 25-year commitment, with some lasting 100 years. Given these timeframes, you need to think ahead when planning the future of your farm, land or enterprise.

Outsourcing or managing the project yourself

Carbon projects can be complex, and the process can take time and effort. You can manage your own project from start to finish. Or you can hire carbon service providers to manage certain activities or the entire project. Choosing which option is best depends on their convenience and cost.

Eligibility to earn carbon credits

To set up a carbon project and earn carbon credits, you need to ensure you can register the project with the Clean Energy Regulator (CER) and meet the legal and financial criteria established under the Australian Carbon Credits Unit (ACCU) Scheme.

FAQs

Read our most frequently asked questions about planning a carbon project.

Suitability of your land

Online tools are available to help you determine whether carbon projects are suitable for your land.

Landscape Options and Opportunities for Carbon Abatement Calculator

The Landscape Options and Opportunities for Carbon Abatement Calculator (LOOC-C), developed by CSIRO, uses an online satellite image-based map to estimate the size and condition of your land and the potential to set up a project under the Australian Carbon Credit Unit (ACCU) Scheme. It can estimate the potential co-benefits and carbon credits generated over a project's lifetime using each method available under the Scheme.

For more information, visit the Landscape Options and Opportunities for Carbon Abatement Calculator (LOOC-C) website.

Carbon Opportunity Decision Support Tool

The Carbon Opportunity Decision Support Tool (CODST), developed by the Australian Farm Institute, can help you better understand carbon farming opportunities and identify which might be best suited for your land and enterprise. It uses a multiple-choice questionnaire to direct you towards optimal choices based on your answers.

For more information, visit the Carbon Opportunity Decision Support Tool (CODST) website.

National Stewardship Trading Platform (NSTP)  

The National Stewardship Trading Platform (NSTP), developed by the Commonwealth and NSW Department of Climate Change, Energy, the Environment and Water, can help you:

  • plan a project using the Australian Carbon Credit Unit (ACCU) Scheme’s environmental plantings method  
  • understand your land’s condition for biodiversity compared to similar land in your region
  • estimate your greenhouse gas emissions
  • assess trends in tree and ground cover.

For more information, visit the National Stewardship Trading Platform website.

Accessing NSW Government support  

The NSW Government supports landholders in considering or planning a carbon project by providing carbon farming education, resource materials and funding.