13 October 2026. Luke Moore, AgForce Policy Officer - Sustainable Agriculture.
Environmental markets are fast becoming part of farm business conversations. A new guide from NRM Regions Australia, Understanding Environmental Markets: A Practical Guide for Landholders and Advisors, explains what they are, how they work and what producers should weigh up before getting involved.
An environmental market is where a landholder is paid, in money or market access, for an environmental outcome such as carbon stored in trees and soil, improved habitat or better water quality. Options include Australian Carbon Credit Units (ACCUs), the Nature Repair Market under the Nature Repair Act 2023 (Cth), the Reef Credit Scheme and voluntary schemes such as Terrain NRM's Cassowary Credits in the Wet Tropics. Reforms to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) passed in late 2025 shifted federal offsets from "no net loss" to "net gain." Nature Repair certificates can now also be nominated as offsets under the EPBC Act.
Beyond credits, the guide points to supply chain in setting, where processors and retailers fund emissions reductions on the farms that supply them. It also mentions green loans and possible tax concessions.
The guide sets out six steps. Producers should identify their natural assets, understand what is possible, and weigh up benefits and risks. They should then get support and build a plan, monitor and adapt, and finally sell credits or access markets.
The risks are significant. Permanence periods run from 25 to 100 years under the ACCU Scheme, or in perpetuity for biodiversity offsets. These periods tie up land use and complicate succession or sale. Upfront costs are often high, returns can take years, and scheme rules and prices can change. The guide also acknowledges that additionality rules can make it harder for producers who already manage their land well to qualify.
Before signing anything, producers should be able to answer five questions. How long does the commitment last? What restrictions apply? What happens if the land is sold or circumstances change? Who carries the risk if outcomes are not delivered? Independent legal and financial advice is essential.
For carbon projects, the guide recommends developers who have signed the Carbon Market Institute's Code of Conduct.
Environmental markets will not suit every property. The rules are still being written, though, and producers who engage now have a real chance to shape them.
Photo owner: Peter Mahony.
