Executive Summary

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Australia has no mangrove-based carbon credit projects in the international VCM but has ten other nature-based projects registered under Gold Standard and Verra. While these projects are not subject to Australia's ACCU system, they must comply with land use regulations and secure landowner rights. Permitting, especially for tidal flow restoration, is complex and varies by state, often requiring multiple federal and state approvals. For instance, in Queensland, developers may need permits under laws such as the Coastal Protection and Management Act, the Native Title Act, and the Marine Parks Act.

Australia does not require nature-based carbon credit projects in the VCM to register on a national carbon registry. However, developers must comply with environmental, land use, and tenure laws at the state and federal levels. While benefit-sharing agreements are not mandated nationally, consent requirements may apply based on land ownership, Indigenous rights, and state regulations. Australia's national carbon market has a benefit sharing framework but does not cover VCM projects. Free, Prior, and Informed Consent (FPIC) is also not required nationally, though some states have consent processes, and the Indigenous Carbon Industry Network provides FPIC guidelines. Measuring, Reporting, and Verification (MRV) is not mandated for VCM projects. The national compliance market has monitoring requirements under the Carbon Credits (Carbon Farming Initiative) Act 2011. Still, these do not extend to VCM projects, which must follow their carbon crediting program's MRV standards.
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Mangrove land tenure varies by state. Ownership depends on jurisdiction and local regulations; the state is not the sole owner. Private and community groups can lease, manage, or own mangroves for carbon projects, subject to state laws and strict environmental regulations. Although regulations vary across states, Australia has a well defined legal framework for carbon rights in mangrove forests. Under the Carbon Credits (Carbon Farming Initiative) Act 2011, carbon rights can be distinct from land ownership and forestry rights. The Carbon Credits (Carbon Farming Initiative—Tidal Restoration of Blue Carbon Ecosystems) Methodology Determination 2022 outlines that project proponents must secure carbon rights through formal agreements with landowners, leaseholders, or
recognized native title holders. In cases where projects span multiple properties, agreements with all landholders are necessary.
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Overall, Australia has ambiguous enabling conditions for blue carbon projects. While there is no national requirement to register VCM projects or implement FPIC, developers must navigate a complex permitting process that varies by state and ensure compliance with multiple environmental and land use regulations. The lack of national benefit-sharing requirements or MRV obligations offers flexibility but also shifts the responsibility to project developers to adhere to best practices. Clear carbon rights frameworks and opportunities for private and community involvement in mangrove-based projects offer potential for investment, but legal and procedural complexities may pose challenges. Project developers should work closely with federal and state authorities to ensure regulatory compliance.

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