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Restoring forests and growing jobs: new carbon methods push Australia towards net zero  

Restoring forests and growing jobs: new carbon methods push Australia towards net zero  

Australia can take a major leap towards reaching its net zero ambitions after the federal government shortlisted for further development two native forest-based carbon abatement methods that have the combined potential to sequester up to 3.7mtC02 per year – the equivalent emissions of more than 800,000 cars,according to independent research commissioned by ACBF.  

On Wednesday, the Improved Native Forest Management method (INFM) and Improved Avoided Clearing of Native Regrowth (IACNR) were shortlisted for further development by federal minister for climate change and energy, Chris Bowen. If implemented in full, these new carbon methods can reduce Australia’s net emissions, restore our native forests, preserve the rich biodiversity that depends on native forests, create jobs in regional areas while industry has an available source of high integrity carbon credits.   
 
“There no longer needs to be a choice between environmental protection and economic benefit. The shortlisting of the INFM method is a landmark moment for sustainable development in Australia. The method promises to provide regions across Australia with new employment opportunities that restore our native forests, making them more resilient and enabling them to operate as carbon sinks as Australia continues its path towards net zero emissions." 
 
“With an anticipated increase in Australian demand for carbon credits of more than 130% beginning next year, ACCUs derived from the INFM method will provide businesses and industries with the certainty of access to high-integrity credits.” 

The IACNR method aims to boost high integrity offset projects by preventing the clearing of regrowing native forests on previously deforested agricultural land which was cleared up to 25 years ago, and land which landholders are legally allowed to re-clear. With a permanence period of 100 years and the capacity to sequester up to 835,000 tCO2 per year, this project incentivises private landholders to protect regrown native forests instead of clearing, while providing confidence to industries seeking high-integrity credits. 
 
“More than 3.8 million hectares of regrown forest was cleared in Australia between 2011 and 2021. By providing landholders with an instrument to derive revenue from preserving regrown forest, the IACNR will be vital to protecting our vital ecosystems, the rich biodiversity that depends on them while also sequestering carbon at scale,” Henry said.   

INFM to deliver more than 1700 forest management jobs in NSW. Photo: Adobe

 

Background 
 

Economics advisory firm Mandala was commissioned by the Australian Climate and Biodiversity Foundation to evaluate the costs and potential income of implementing a forest carbon project across all public native forests in NSW, and to model scenarios of the jobs and economic outcomes that could be generated by reinvesting all carbon project revenue in regional forestry areas. 
 

Take out #1: Forest carbon credits create new opportunities for forest management and regional communities.   
 

Public expectations, economic conditions, and environmental considerations have led to changes in the Australian forestry industry, as the sector increasingly moves from native forestry to plantations. 
 

This is occurring alongside a growing carbon credit market. Australian Carbon Credit Unit (ACCU) demand is projected to increase by 132%, and prices by 78% over the next decade. Carbon credits generated from ending native forest harvesting can create income to reinvest in regional economies, forest management, and managing changes in the native forest sector. 
 

Take out #2: An INFM method ending public native harvesting can generate revenue for NSW of between $1 and $2.6 billion over 15 years, with a central estimate of $1.5 billion. 
   

NSW is applying for Australian Government approval of an (INFM) method. If approved, carbon projects created under this method could generate 1.5 million ACCUs a year, by avoiding emissions from logging and capturing carbon in growing forests in state forests. 
 

“On a conservative estimate, this could represent $1.5b in ACCU revenue for the NSW Government,” Managing partner at Mandala, Amit Singh, said. This is based on a moderate ‘central case’ carbon credit price that rises to $67 in 2030. 
 

Currently, high integrity carbon credits with ‘environmental co-benefits’, such as biodiverse environmental planting, command a 75% price premium. Assuming forest credits offer similar benefits to carbon buyers results in revenue for the NSW Government $2.7 billion over 15 years. Alternatively, low-end ACCU price forecasts produce a minimum $1 billion revenue. 
 

Take out #3: Reinvesting carbon project income creates new opportunities in improving the management of forests, employing 1700 workers in an on-ground forest management workforce. 
 

Implementing a high integrity forest carbon project – including best practice LiDAR aerial monitoring and on ground management – costs $24-29 million p.a. and requires 344 workers, mostly in forest management at an equivalent cost to that delivered in national parks and state forests. Subtracting carbon project running costs results in net income between $650 million and $2.3 billion income for the state of NSW between 2024 and 2040, with a central case of $1.1 billion. 
 

“Reinvesting this $1.1 billion of carbon income in additional forest management in regional forestry areas ($70 million annually) employs an additional 1,354 forest workers,” Singh said. 
These workers would carry out activities such as pest and weed removal, fire management, and protection of cultural and environmental assets.   
 

In total, between workers required to run a forest carbon project, and reinvesting income in additional on-ground forest management, a forest carbon project implemented across all NSW state forests would employ a workforce of 1,700 forest management workers.

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A new future for Australia's forests