Tiwi Plantations Corporation pioneers game-changing ACCU project
Investment to lift key infrastructure sustainability in hard-to-abate sectors
The CEFC, alongside River Capital, is backing a landmark First Nations-led plantation forestry project in the Tiwi Islands to plant 30,000 hectares for long-rotation forestry harvest. The project is expected to generate high-integrity Australian Carbon Credit Units.
$40 million
CEFC investment
30,000
hectares
5 million
ACCUs potential
Watch
Australia’s largest First Nations-led carbon initiative
See how this landmark First Nations-led plantation forestry initiative in the Tiwi Islands is expected to deliver substantial economic benefits for the Tiwi community while generating high-integrity Australian Carbon Credit Units and timber.
Our investment
The CEFC is investing up to $40 million alongside Australian multi-asset investment firm, River Capital, in a landmark First Nations-led plantation forestry project in the Tiwi Islands, owned by the Tiwi Plantations Corporation and managed by plantation and carbon management investment company, Midway Pty Ltd.
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.
The planting of 30,000 hectares of Eucalyptus pellita trees, which are endemic to Northeastern Queensland, is projected to generate around 5 million nature-based ACCUs under the Plantation Forestry method over the life of the project.
The first two stages of the project have been registered with the Clean Energy Regulator for an estimated 865,000 ACCUs out of the 5 million total.
The plantation is also expected to produce approximately 12 million cubic metres of high-value wood products to support long-term carbon storage through sustainable timber used in construction and reduce reliance on native forests.
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.Kim PuruntatameriChair of the Tiwi Plantations Corporation
OUR IMPACT
Seeding economic and environmental benefits
Sustainable plantation forestry plays an important role in Australia’s low carbon future because it can drive down emissions through sequestering and storing carbon.
The Tiwi Plantations Corporation is owned, operated, and governed by all eight Tiwi clans. Its plantation initiative is expected to deliver substantial economic benefits for the Tiwi community, including training and employment opportunities.
With this project, the CEFC is creating new commercial investment models for meaningful collaboration with Indigenous communities.
The initiative, delivered under the updated Plantation Forestry Method, is a unique opportunity to restore productive forest ecosystems using native species and deliver lasting carbon, environmental and economic outcomes.
This large-scale project, that meets international demand for high quality timber products, is projected to increase Australia’s total plantation area by approximately two per cent.
This investment is a rare opportunity to deliver financial, environmental and social impact at scale.Suzi CarpCo-Founder and Director, River Capital
Spearheading plantation forestry’s decarbonisation potential
CEFC investment in plantation forestry is helping unlock the supply of carbon credits and accelerate carbon sequestration opportunities, to ensure we make the best use of our land as we decarbonise our economy.
Natural capital assets offer significant opportunities to contribute to the decarbonisation pathway for Australia and to build competitive new industries for our net zero future. These require a long-term investment focus. The sooner we act, the greater the economic benefit and the more opportunity we have to mitigate the worst effects of climate change.
The CEFC has previously invested $75 million in the Australia New Zealand Landscapes and Forestry Fund which is managed New Forests. The underlying plantations have the potential to generate revenue through ACCUs, supporting the growing carbon credit market in Australia.
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 SungHead of Natural Capital, CEFC
