The long-promised New South Wales great koala national park is set to go ahead after the Albanese government approved a regulatory change allowing state governments to earn carbon credits by storing carbon dioxide in native forests on public land. The assistant climate change minister, Josh Wilson, confirmed the decision, which unlocks hundreds of millions of dollars for protecting forests previously earmarked for logging.
Carbon Credit Mechanism
Each carbon credit represents one kilogram of emissions prevented or removed from the atmosphere, often through tree growth. Polluting companies can buy unlimited credits to offset their emissions, a practice scientists warn should be used sparingly as rapid direct cuts are needed to limit the climate crisis. The NSW government had been waiting for federal approval before delivering its election commitment to add 176,000 hectares of national park near Coffs Harbour.
Koala Park Details
NSW Labor first promised a koala park over a decade ago. In September, the government confirmed it would protect old-growth forests, at least 12,000 koalas, and more than 100 other threatened species. The carbon credit method includes safeguards to prevent logging from simply shifting elsewhere by reducing and capping the amount of logging allowed as credits are issued.
The state environment minister, Penny Sharpe, said the revenue would benefit regional communities through diversified income streams and create 100 new jobs in the national park. The government will now register its carbon project plan with the federal Clean Energy Regulator.
Mixed Reactions
Conservation groups were divided. Dailan Pugh from the North East Forrest Alliance called it a “gamechanger” for recovering an area that lost half its stored carbon due to logging. The Australian Climate and Biodiversity Foundation, led by former Treasury secretary Ken Henry, described it as a “once-in-a-generation opportunity to drive down greenhouse gas emissions.” The Nature Conservation Council welcomed strong safeguards against logging displacement.
However, The Wilderness Society opposed the change, arguing it allows big emitters to continue polluting. Tasmanian forest campaigner Hughie Nicklason said carbon credit schemes had “repeatedly been decried as a sham.” NSW Greens MP Sue Higginson criticized the logging industry as unprofitable and called for an end to logging without relying on carbon credits.
The Bob Brown Foundation’s patron, Christine Milne, accused NSW Labor of retrofitting an election promise by making it conditional on offsets, calling it “typical Labor party bastardry.” The Australian Forest Products Association said the method lacked integrity, transparency, and additionality.
Wilson stated the Albanese government has “no plans to end logging” and that using carbon credit revenue is a voluntary option for states to diversify regional economies, including ecotourism and carbon land management.
