Key facts
- Nippon Paper Industries launched a carbon credit generation project in Australia's Green Triangle region.
Nippon Paper Industries, via its Australian subsidiary, has launched a project to generate Australian Carbon Credit Units (ACCUs) from new radiata pine plantations in western Victoria. Credit issuance is expected to begin in 2027.
This initiative by Nippon Paper contributes to Australia's carbon market and demonstrates corporate investment in forestry-based carbon sequestration projects, potentially influencing future land use and carbon pricing dynamics.
Japan's Nippon Paper Industries, through its Australian subsidiary Nippon Paper Resources Australia (NPR), has initiated a carbon credit generation project in the Green Triangle region of western Victoria, Australia. The project, approved by the Clean Energy Regulator (CER), aims to produce Australian Carbon Credit Units (ACCUs) by establishing new radiata pine plantations on land previously used for hardwood forestry.
Credit issuance is anticipated to commence in 2027 under Australia's federal carbon credit scheme. NPR plans to gradually convert existing hardwood plantations to softwood, with the initial phase targeting approximately 1,500 hectares by 2028. The company intends to leverage the experience gained from this first phase to evaluate a potential second phase, which could extend the plantation and carbon project areas to around 10,000 hectares.
As of July 15, ACCU spot prices remained relatively stable, assessed at A$37.95 per tonne of CO2 equivalent (CO2e), equivalent to $27/t CO2e. Prices had briefly touched a weekly high of A$38.05/t CO2e on July 14.