Environment and Climate

Biodiverse Carbon Farming

Australia is facing a dual biodiversity and climate crisis leading to species extinction, collapsing ecosystems, endangered vegetation communities, extreme weather events and impacts to health, wellbeing and financial security.

With global net zero commitments, accelerating climate pledges, regulatory compliance measures and mandatory climate disclosures, the demand for climate action across Australia has never been greater or more important.

Since European colonisation, Australia’s rich biodiversity has experienced large and rapid declines. Over half of Australia’s forest and bushland have been permanently destroyed, replaced or are now classed as degraded.1 This clearing has led to accelerated species extinction across the country. Globally, one million species are at risk of extinction and Australia’s contribution to this is outsized.2

To make matters worse, Australia has some of the highest per capita carbon emissions in the world. Our emissions profile is leading to an increase in the frequency of extreme weather events, poorer air quality, warming oceans and impacts to health and wellbeing.

Sources:
1. Australian Bureau of Agriculture and Resource Economics (2012) Vegetation Assets, States and Transitions—2008 dataset.
2. United Nations; UN Report: Nature’s Dangerous Decline ‘Unprecedented’; Species Extinction Rates ‘Accelerating’.

Image of ‘Caddigat Road’ property in Southern NSW | Image credit: Richard Snashall
Image of ‘Caddigat Road’ property in Southern NSW | Image credit: Richard Snashall

How do we address this challenge?

CIM has made three natural capital investments to date.In May 2024, CIM partnered with environmental not-for-profit, Greening Australia, to establish a structure to support the delivery of biodiverse environmental planting projects across Australia.

CIM’s first investment alongside Greening Australia was financing the purchase of a 755-hectare property in Southern NSW, known as ‘Caddigat Road,’ with plans to plant approximately 140,000 native trees and shrubs on the property in 2025.

Caddigat Road is located in the Snowy Monaro region of Southern NSW, approximately 2.5 hours south-west of Canberra. Typical Snowy Mountains sheep grazing country, the area has a legacy of clearing and has piqued the interest of universities and local and state governments due to its alarming signs of biodiversity loss and vulnerability.

Restoration of the property is designed to benefit several nationally listed woodland bird species and will contribute to the recovery of the critically endangered Monaro Tableland Cool Temperate Grassy Woodland vegetation community.

The planting design focuses on diverse native species endemic to the area with the goal of supporting conservation of native wildlife by creating and connecting habitat across the landscape. Long-term climate resilience is also a key consideration.

The property has been successfully registered with the Clean Energy Regulator as an Environmental Plantings project with a 100-year permanence period. Greening Australia will act as landowner and project developer and CIM has provided innovative financing for the project, with repayments linked to the generation and sale of Australian Carbon Credit Units (“ACCUs“).

Once fully planted, the Caddigat Road carbon project is estimated to sequester ~300,000 tonnes of CO2e.3

CIM made its second biodiverse environmental planting investment alongside Greening Australia in January 2025, providing financing for the purchase of a 3,313-hectare property in South Australia for a property named “O’Kiltabie”. Greening Australia plans to plant ~900,000 native trees and shrubs on the property over 2026/27.3

Restoration of the property is designed to contribute to the recovery of the EPBC–listed, Critically Endangered Drooping Sheoak Grassy Woodland on Calcrete ecosystem, and to benefit a number of threatened bird and mammal species.

In addition to the Greening Australia partnership, CIM has also partnered with Traditional Owner group, the Kullilli Bulloo River Aboriginal Corporation (“KBRAC“) and carbon farming service provider, Climate Friendly, with CIM providing financing for KBRAC to acquire and regenerate a piece of Native Title land with substantial cultural significance to the Kullilli People. See media release here.

Sources:
3. These metrics are targets of the impact of the project over the life of the carbon project. There can be no guarantee that these forecasts will be achieved.

Impact Partner Profile – Greening Australia

Greening Australia is a national not-for-profit environmental enterprise, committed to restoring Australia’s diverse landscapes and protecting biodiversity. Established in 1982, Greening Australia is the largest producer of Australian Carbon Credit Units under the Environmental Plantings method as per the Clean Energy Regulator.

“Caddigat Road is an uncommon beauty in an ecologically significant location. Restoration of the property will create and link critical habitat for native species whilst storing carbon and delivering co-benefits for the local community. Our partnership with CIM will channel investment into further property acquisitions for biodiverse environmental planting projects like this one, helping scale our vital restoration work through the power of environmental markets.”
– Heather Campbell, CEO of Greening Australia

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