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Frequently asked questions

01 What is carbon farming?

Carbon farming is the practice of reducing carbon emissions into the atmosphere by storing carbon (CO2e) in the landscape, specifically in vegetation and soil. There are a variety of carbon farming methods that can integrate into existing farming operations, such as planting trees and vegetation to store carbon in the landscape or changing property management to store carbon in soil.


In Australia, carbon farming activities that comply with specific vegetation or agricultural-based methodologies can be registered as projects under the Australian Carbon Credit Unit (ACCU) Scheme. Several other international methodologies can apply to certain projects, but these FAQs apply to ACCU Scheme methodologies.

In Australia, ACCUs are issued by the CER to a project proponent when it is verified that carbon has been successfully stored in the landscape. One carbon credit equals one tonne of CO2e stored or avoided by a project.

Carbon credits can act as an additional revenue stream for your farming business. As the government, business and industry move towards carbon neutrality, these carbon credits are increasingly more lucrative assets or tradable commodities.
There is no minimum size for a project to be registered under the ACCU Scheme, however size is a key variable for project success. Other variables such as carbon yield, and whether you may be eligible to take advantage of cost-reduction opportunities, will determine whether your land is viable for a carbon project. A project of at least 150ha is a general rule of thumb for viability, with greater project sizes allowing for greater economies of scale for many costs.

Carbon credits are issued after each relevant reporting period within the carbon project. You can choose to sell these credits and generate an additional revenue stream, however the price you may be able to negotiate for the selling of your ACCUs is not static. Similar to shares, the price of your ACCUs will depend on the type of project you’re running and demand for ACCUs more widely. There are many reputable advisory services and we can help to point you in the right direction when you come to this stage of your project

Unfortunately, to be able to participate under the ACCU Scheme methods we support you cannot plant trees in areas where forest cover already exists (or was present in the past 7 years). This is to ensure that the project is additional.
We recommend starting to gather all your required documentation and evidence at least 1 year prior to when you’re hoping to plant. This will allow you to properly complete your application ahead of time, aid a smooth registration process with the Clean Energy Regulator (CER), and give you opportunity to get your seedlings ordered in time for the next planting window.

Once you submit your registration with the CER, they have up to 90 days to assess your application, so it is important to have a clear understanding of timings at the commencement of your project.

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The Carbon Farming Foundation (ABN 67 645 498 004) is a Corporate Authorised Representative (AFS Representative No.001298535) of True Oak Investments Pty Ltd (ABN 81 002 558 956, AFSL 238184).

The information on this website is general financial product advice only. It does not take your personal financial objectives, situation or needs into consideration. We recommend that you read our Financial Services Guide and consider seeking independent advice before making a financial decision.