Whether your land is eligible for a carbon project comes down to a handful of things: the type and condition of your land, whether an approved method fits what you can do with it, whether you hold the legal right to run the project, and whether you are willing to store carbon for the long term. The rule that catches most people out is timing. You generally have to register the project before you start the activity, so it pays to check eligibility early rather than after you have made changes.
This guide walks through what makes land eligible, what rules it out, and how to find out for certain.
The quick version
You are more likely to be eligible if:
- you have grazing, cropping or previously cleared land that you can manage differently
- you hold the legal right to the land, whether freehold or leasehold with the right permissions
- you have not already started the activity you would be claiming credits for
- the change is not something the law already requires you to do
- you are willing to maintain the stored carbon for 25 or 100 years
- there is enough land involved to make the project worth the costs
If most of those sound like you, it is worth a proper look.
The eligibility checklist in full
- An approved method fits your land. The scheme only credits activities covered by an approved method. Soil carbon, native vegetation regeneration, reforestation and savanna fire management each suit different country, so the first question is whether any of them match your land and what you can realistically do with it.
- The activity is new. You generally need to register the project with the Clean Energy Regulator before the activity starts. Work you have already done usually cannot be backdated into a project.
- The change is additional. The activity has to go beyond what the law already requires and beyond standard practice. If you would be doing it anyway, or a regulation already mandates it, it will not qualify.
- You hold the legal right to the land. Freehold is straightforward. Leasehold, Crown land and country subject to native title can all work, but they need the right permissions and agreements in place.
- Everyone with a legal interest consents. Before credits are issued, parties with an interest in the land, such as your bank or other titleholders, have to consent to the project and its long-term obligations.
- You can commit to permanence. Sequestration projects require you to keep the carbon stored for 25 or 100 years, and that commitment stays with the land if you sell.
- The numbers work. This is practical rather than legal, but a project needs enough area and abatement to cover registration, measurement, audits and management and still leave a worthwhile return.
What usually rules a project out
- the activity has already started, which fails the newness test
- the change is something a law already requires, so it is not additional
- there is no clear legal right to the land, or a required party will not consent
- the land is already committed to another carbon project or a conflicting obligation
- you are not able to commit to the permanence period
Most knock-outs come down to timing or rights, which is exactly why an early check is worth it.
Different methods suit different land
There is no single “carbon land.” Soil carbon tends to suit productive grazing and cropping country where you can change management. Native vegetation regeneration suits land where native species will come back if the pressure is taken off. Reforestation suits cleared land you are willing to plant. Savanna fire management applies across northern Australia, including large parts of Queensland. The complete guide to carbon farming explains each method, and soil carbon, explained goes deeper on the most common one.
How to know for certain
A checklist gets you to “worth a look,” not “yes.” A real assessment looks at your title and tenure, your land’s history and condition, which method fits, the consents you will need, and whether the numbers stack up for your property. That is the point where a general guide ends and a property-specific assessment begins.
If you want to understand the process end to end first, see how landholders generate ACCUs, and before you commit to anyone, read the questions to ask before signing a carbon project agreement.
Frequently Asked Questions (FAQs)
Can I run a carbon project on leasehold or Crown land?
Often yes. Leasehold and Crown land can host projects, but you need the legal right to carry out the activity and to deal with the carbon, which usually means specific permissions or agreements. It is one of the first things worth checking.
If you have a mortgage or another party holds a legal interest in the land, they generally need to consent before credits are issued, because the project creates long-term obligations on the title. Most lenders are familiar with this now.
Possibly not for that change, because projects usually have to be registered before the activity starts. It depends on the method and the timing, so it is worth asking before you assume the door is closed.
There is no single legal minimum, but there is a practical one. The project has to generate enough credits to cover its costs, so very small areas often do not stack up on their own, though aggregating with neighbours can sometimes help.
Usually not. Several methods, soil carbon especially, are designed to run alongside grazing or cropping rather than replace it. How much changes depends on the method.
A first-pass check on the key factors can often be done quickly once the basic details about your land are known. A full feasibility assessment, with the numbers, takes longer.
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