The CEFC is investing up to $40 million alongside Australian multi-asset investment firm, River Capital, in a landmark First Nations-led plantation forestry initiative in the Northern Territory's Tiwi Islands, owned by the Tiwi Plantations Corporation and managed by plantation and carbon management investment company, Midway Pty Ltd (Midway).
The $81 million project is expected to become one of Australia's largest nature-based carbon initiatives, planting native species for a long-rotation program, generating high-integrity Australian Carbon Credit Units (ACCUs) as well as timber.
We are incredibly proud to support and empower the Tiwi Islands communities to achieve economic participation in the energy transition. Sustainable forestry plays an important role in Australia's low carbon future, and with this project, we are creating new commercial investment models for meaningful collaboration with Indigenous communities.Heechung Sung
CEFC Head of Natural Capital
The Tiwi Plantations Corporation is owned, operated and governed by all eight Tiwi clans. The plantation initiative will deliver substantial economic benefits for the Tiwi community, including training and employment opportunities.
Heechung Sung, CEFC Head of Natural Capital, said: "We are incredibly proud to support and empower the Tiwi Islands communities to achieve greater economic equity in the energy transition. Sustainable forestry plays an important role in Australia's low carbon future, and with this project, we are creating new commercial investment models for meaningful collaboration with Indigenous communities. This investment has created a forestry industry to drive economic opportunity that will endure for generations to come."
"This initiative, delivered under the updated Plantation Forestry Method, is a unique opportunity to restore productive forest ecosystems using native species, delivering lasting carbon, environmental and economic outcomes."
The planting of 30,000 hectares of Eucalyptus pellita, trees native to Northeastern Queensland, is projected to generate around 5 million nature-based ACCUs1 under the Plantation Forestry method over the life of the plantation. This large-scale initiative is projected to increase Australia's total plantation area by approximately 2 per cent2, meeting international demand for high quality timber products.
Kim Puruntatameri, Chair of the Tiwi Plantations Corporation said: "The Tiwi Plantations Corporation represents the land for our people. We've got to look after the land very well for the next generation coming. To keep the environment strong, we need to work together with people from outside. If we work together as one, we're going to get there, we must listen to one another. Tiwi knowledge and our culture are the most important things, we need to pass the knowledge on to our grandkids."
Suzi Carp, Co-Founder and Director of River Capital, said: "We are proud to be involved in this transformational project. This investment is a rare opportunity to deliver financial, environmental and social impact at scale."
Managed by Australian plantation investment manager Midway, the plantation is expected to produce approximately 12 million cubic metres of high-value wood products. This will support long-term carbon storage through sustainable timber used in construction and reduce reliance on native forests.
Tony McKenna, CEO of Midway said: "It is a privilege for Midway to be able to leverage our relationships and expertise to bring together this historic collaboration between the Tiwi community, River Capital and the CEFC. We have registered the first two stages with the Clean Energy Regulator for an estimated 865,000 ACCUs of the project's total 5 million ACCUs."
The CEFC has invested in a broad spectrum of natural capital projects, from large-scale investments in specialised funds to providing discounted finance for on-farm emissions reduction activities and renewable energy improvements. Recent investments include the launch of a $250 million Australian agriculture and carbon platform, a $100 million commitment to back NAB Agribusiness to cut borrowing costs for farmers seeking to invest in emissions reduction activities, a $200 million commitment to Rabobank Australia to provide discounted loans that help reduce upfront costs for farmers undertaking Environmental Planting sequestration activities, and a $75 million equity commitment to sustainable forestry with New Forests to support the development of plantations and drive down emissions through carbon sequestration.
1 Internal CEFC analysis using FullCAM, 2024.
2 Based on Department of Agriculture, Fisheries and Forestry - Australian plantation statistics
