Background

On 12 July 2024, the NSW Government submitted an expression of interest to the Australian Government for the Improved Native Forest Management (INFM) method under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) (the CFI Act).

On 30 October 2024, the Australian Government announced that the INFM expression of interest had been prioritised for method development. The INFM method was one of only four methods selected for prioritisation from 39 expressions of interest. 

The NSW Department of Climate Change, Energy, the Environment and Water (the department) partnered with the Australian National University to develop the method. The draft method was subject to extensive technical development, stakeholder engagement and public consultation, including briefings and workshops with experts and key stakeholders.

Following consultation, the draft method was submitted to the Australian Government and independently assessed by the Emissions Reduction Assurance Committee against the statutory Offsets Integrity Standards.

On 25 June 2026, the INFM method was approved by the Australian Government Assistant Minister for Energy and Climate Change. The method was found to meet the requirements of the Offsets Integrity Standards under the CFI Act.

The approved method enables Australian Carbon Credit Units (ACCUs) to be generated from projects that reduce or stop native forest harvesting on public native forest land designated for commercial forestry use, subject to strict integrity, baseline and leakage safeguards.

The method explained

The INFM method sets out how carbon credits are generated under the ACCU Scheme for projects that reduce or stop timber harvesting in public native forests.

Projects must cover at least a whole forestry region and can include carbon protection areas (CPAs) where harvesting permanently ceases, as well as areas where harvesting may continue at reduced levels. The method includes clear rules for how emissions reductions are calculated, monitored and verified over time.

The method applies only to public native forests that are designated for commercial forestry use and requires that projects demonstrate genuine and additional emissions reductions compared to a defined baseline.

Detailed rules, supporting guidelines and technical documentation for the INFM method are available on the Australian Government’s website.

How the method generates carbon benefits

Reducing or stopping timber harvesting in native forests can reduce greenhouse gas emissions by:

  • avoiding emissions associated with harvesting and post-harvest activities
  • maintaining and increasing carbon stored in forests over time as they grow older.

The method uses a comprehensive accounting framework that considers:

  • changes in carbon stored in forests and forest debris
  • carbon stored in harvested wood products
  • emissions from harvesting activities
  • potential “leakage” where harvesting may increase elsewhere
  • impacts of natural disturbances such as bushfire.

These elements ensure that only net emissions reductions are credited, consistent with the Australian Government’s integrity standards.

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