Plantation forestry in Tasmania is set to benefit from greater opportunities for carbon funding for forestry projects thanks to changes to the Emissions Reduction Fund made by the Australian Government.
Assistant Minister for Forestry and Fisheries Jonno Duniam said the new ERF Plantation Forestry Method would boost the plantation forestry sector and the jobs and communities it supports in Tasmania and around the country.
"The Australian Government continues to make it easier for plantations to generate carbon credits under the ERF and access the $2 billion Climate Solutions Fund," Assistant Minister Duniam said.
"Improved access to carbon credits for the plantation forestry will enable further growth of Australia's plantation area and future wood supply, and provide more carbon credits for businesses to offset their emissions and generate revenue.
"Sustainable forestry is an important source of offsets for the decades ahead, contributing to Australia meeting and beating its emissions reduction targets while growing a strong economy."
New Forico Chief Executive Officer Ange Albertini said greater access to carbon credits for Australia's plantation forests builds the business case for establishing new plantations.
"Carbon sequestered by forests and, stored in wood and wood products, plays an important role in the Australian economy," Mr Albertini said.
"Last year our natural capital report reported Forico was a net absorber of 1.4 million tonnes of CO2 equivalent in 2020-2021.
"The new methodology will enable the industry to continue planting much needed trees in areas which may have been converted to other uses.
"Carbon funding for forestry projects recognises the positive contribution of sustainably managed production forestry."
The new method was developed by the Clean Energy Regulator, through a co-design process with industry and stakeholders, and comes into effect today, 31 January 2022.
