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Climate Solutions Fund > How it works > Explore project types > Human-induced regeneration projects

Human-induced regeneration projects

The benefits

A human-induced regeneration (HIR) project stores carbon in regenerated native forest. This earns Australian carbon credits units (carbon credits) in return for reducing the level of greenhouse gases in the atmosphere.

Allowing native forests to regenerate has a number of benefits:


Diversify revenue

Carbon credits provide another income stream for your property.


Farm benefits

Provides shelter for livestock and reduces soil erosion and salinity.


Ecosystem health

Improved water quality through reduced pesticide and fertiliser runoff.


Conserve biodiversity

Native forests supply habitat for species such as insects, birds and reptiles.

Help with these projects

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The basics

Introduction to human-induced regeneration projects, how they work and their eligibility requirements.

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The details

Further information and resources on human-induced regeneration projects under the Emissions Reduction Fund.


How HIR projects work

A HIR project involves introducing new land management practices to allow native forests to regenerate rather than being cleared. A forest is a 0.2 ha or larger area of land with trees that are at least two metres high and have at least 20 per cent canopy cover.

You need to use the free Full Carbon Accounting Model (FullCAM) software to model carbon stored in growing trees. You earn carbon credits for modelled increases in stored carbon. The FullCAM model is being upgraded and the estimates for HIR projects are likely to change. You should ensure you use the most up to date version of FullCAM to work out potential abatement for your project.

HIR project activities

You can run a HIR project by undertaking a range of new land management activities such as:

  • Ceasing the destruction or suppression of native regrowth.
  • Removing livestock or managing the timing and extent of grazing in the area.
  • Managing feral animals humanely or removing plant species not native to the area.

How the Climate Solutions Fund works

The Climate Solutions Fund builds on the Emissions Reduction Fund and offers landholders, communities and businesses the opportunity to run new projects that reduce or remove greenhouse gas emissions from the atmosphere.

In running a Climate Solutions Fund project, you can earn carbon credits and sell them to the Australian Government, or to companies and other private buyers. Each carbon credit represents one tonne of carbon dioxide equivalent greenhouse gas emissions stored or avoided (noting that discounts apply to projects that store carbon).

How to participate

Climate Solutions Fund project lifecycle

Make sure you are eligible to participate

To be eligible you must:

  • Identify eligible land on your property:
    • Your land cannot have areas of existing forest and must have been managed in a way that suppressed regeneration of native vegetation in the ten years before you apply to register a project (e.g. the land will need to have been subject to mechanical clearing or grazed by livestock).
    • Your land needs to have the potential to achieve forest cover if allowed to regenerate.
  • Establish legal right (the right to run your project and claim carbon credits) – for example, holding a lease or land title, or having a signed agreement with other landholders to run a project on their land.
  • Obtain regulatory approvals and consent from everyone with an eligible interest in the project land. Consent holders will vary. They may include banks, state governments (if the land is leased) or relevant native title bodies corporate.
  • Make sure your project is new — you will need to adopt a new land management activity after you register your HIR project.

Running and reporting on your project

As part of registering a project, you will need to map your project boundary, identify vegetation groups and calculate your expected carbon credits.

There are operating, reporting, monitoring and audit obligations in running a HIR project. You will need to report on how your native forest is regenerating at least once every five years. You will receive carbon credits for modelled increases in stored carbon over a period of 25 years.

Your project must store carbon for 25 or 100 years to deliver a long-term benefit to the atmosphere (known as ‘permanence’). If stored carbon is lost from regenerating forest, you may need to hand back carbon credits.

Relevant legislation and resources

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