Words by Impact Ag Australia
What if a carbon project could do more than store carbon? What if it could restore endangered habitat? Rehydrate the landscape? Build soil health? Strengthen farms against drought? And drive better productivity and profitability?
With support from the NSW Government’s Living Carbon program, a new woodland restoration project is taking shape in regional New South Wales. Delivered by Impact Ag Australia on a grazing property in the Riverina, the project is testing a new approach to environmental planting.
“This project is about showing what’s possible when vege carbon projects are designed with biodiversity and future agricultural use in mind,” said Sara Schmude, Impact Ag Australia’s Natural Capital Project Manager. “We’re building an ecosystem that can thrive within a working farm, and the evidence to prove this model delivers for both economics and the environment.
Restoring the endangered Box-Gum Grassy Woodland
At the heart of the project is the Box-Gum Grassy Woodland, one of eastern Australia’s most iconic but critically endangered ecological communities. Characterised by open canopies of widely spaced eucalypts over a species-rich grassy understory, these ecosystems were once widespread from Victoria through New South Wales and into southern Queensland.
Today, only about five per cent of Box-Gum Grassy Woodland remains. Clearing for agriculture ‒ compounded by intensive grazing, exotic pasture species, fertiliser use, and altered fire regimes ‒ has left the woodland highly fragmented. At least half is in such poor condition that it is no longer a functional woodland ecosystem.
Yet it supports extraordinary biodiversity: more than 400 native plant species, and fauna such as squirrel gliders and the endangered regent honeyeater.
“The future of Box-Gum Grassy Woodlands depends on active restoration,” explained Sara. “Monocultures can’t deliver that ‒ we need functioning woodland, not carbon plantations. And with most remnant woodland found on farms, the best way to scale this model is to prove it works alongside productive agriculture.”
Pioneering new methods at scale
Before planting began, the Impact Ag Australia project team carried out a natural capital opportunity assessment across the property to match land use with land capability. This identified complementary natural capital opportunities: a soil carbon project established in 2024, potential biodiversity offsets in remnant vegetation, and the environmental planting project; a site specifically chosen to balance carbon yields and agricultural production capabilities.
The planting design was refined using Agronomeye’s digital twin technology, which mapped the undulating, rocky landscape and guided where different planting methods should be used.
On-ground partner Wyola Seeds direct-seeded a 70/30 mix of trees and shrubs along the carefully-mapped 220-kilometre circuit. Tree species included White box (Eucalyptus albens), Yellow box (Eucalyptus melliodora), Apple box (Eucalyptus bridgesiana) and Blakely’s Red Gum (Eucalyptus blakelyi). Shrubs included casuarinas, tea trees, and wattles.
“While not yet commonplace in environmental plantings, we used direct seeding across most of the site,” explained Sara. “It means the seeds best suited to local soil and microclimate establish themselves, often with vigorous growth that leads to a more resilient woodland.”
On the steeper or rockier slopes, more than 10,000 tubestock were hand-planted, ensuring the entire 200-hectare landscape contributes to habitat connectivity and the project’s target of 200 stems per hectare in canopy cover.
“It’s not often you get to see the rebirth of an endangered woodland,” reflected Impact Ag Australia Farm Manager, Dave Hardie. “Each run of seed and each row of tubestock represents future habitat, future soil health, and future productivity. In a few years’ time, we’ll have a working woodland with grazing opportunities woven back into the landscape.”
Proof in the plants: biodiversity and carbon in action
Registered with the Clean Energy Regulator, the project is projected to generate around 48,000 Australian Carbon Credit Units (or ACCUs) over 25 years. Alongside carbon, the project team is embedding a biodiversity crediting framework, using the Accounting for Nature and Landcare Farming Native Vegetation Method (V-06). Seven permanent monitoring sites provide independent, verifiable data on biodiversity improvements.
“We believe this is where carbon markets are heading,” said Sara. “By measuring full ecological outcomes through Accounting for Nature, we can demonstrate verifiable biodiversity benefits alongside carbon. While the ‘Econd’ market is still emerging, it has the potential to enhance the value of carbon credits while delivering genuine environmental impact.”
Building resilience into the farm system
This Riverina planting isn’t about locking up land. Once established, time-controlled grazing will resume, demonstrating how a high-integrity carbon and biodiversity project can actively support, rather than restrict, a productive grazing enterprise:
- Soil health: Deep-rooted perennials improve soil structure, increase organic matter, and help retain moisture, making the landscape more drought resilient.
- Pasture growth & livestock health: Improved soil organic matter and water retention support higher-quality pasture for healthier stock.
- Shelter & microclimate: Trees and shrubs provide shelter for livestock, reducing stress and improving grazing efficiency.
- Biodiversity connectivity: Plantings reconnect habitat for native wildlife, supporting pollinators, pest control, and ecological function.
- Erosion control & landscape stability: Vegetation cover reduces wind and water erosion, protecting productive land.
A model for the sector
“Projects of this type are still rare in Australia, particularly at this scale,” concluded Sara. “But hopefully, not for long. Beyond our own balance sheet, the real value is in the evidence we’ll generate: survival rates across seeding methods, costs of managing pests and weeds, speed of biodiversity response, and compatibility with ongoing farm operations.”
“By capturing these lessons, we aim to create a roadmap for environmental planting initiatives that strengthen both farms, and landscapes.”
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