The Australian state of Victoria has introduced a new funding initiative to encourage landowners to develop forestry projects capable of generating carbon credits. Announced on 4 August, the Victorian Trees on Farms Programme (VTOF) offers financial support for both plantation forestry (PF) and native environmental plantings (EP).
Forestry and farming project as a part of Victoria’s Trees on Farms initiative. AI generated picture.
Under the scheme, eligible landowners can receive $2,595 (AUD 4,000) per hectare for plantation forestry and $1,310 (AUD 2,000) per hectare for native plantings. PF projects can secure up to $52,500 (AUD 80,000) in total, while EP projects are capped at $26,200 (AUD 40,000).
Both project types may be registered under Australia’s approved methods for generating Australian Carbon Credit Units (ACCUs). EP projects must cover at least 5 hectares and achieve a minimum sequestration rate of 5 tonnes of CO₂ per hectare annually over 25 years. PF projects require a minimum of 3 hectares and must be located in areas receiving an average of at least 500 millimetres of rainfall per year.
The programme will consolidate two previous state initiatives: the Victorian Carbon Farming Programme and the Gippsland Farm Forestry Programme. The latter, launched in 2024 with $980,000 (AUD 1.5 million) in funding, aimed to cover around half of the establishment and early management costs for farm-based plantations.
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Eligibility for the VTOF requires applicants to be the freehold owner of land within Victoria or to hold formal approval from the owner. Participants must also demonstrate readiness to implement the project—either through the engagement of a forestry service provider or by showing proof of relevant experience.
According to Victoria’s Department of Energy, Environment and Climate Action (DEECA), the new programme aims to support both environmental restoration and economic opportunities for landowners. By combining financial incentives with the potential for carbon credit generation, the VTOF is positioned to contribute to long-term sustainability goals while enhancing on-farm productivity.
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Government programmes like Victoria’s Trees on Farms initiative send a powerful message: Nature-based solutions are essential to meeting environmental and economic goals. By recognising the role of forests, biodiversity, and healthy ecosystems in capturing carbon and restoring landscapes, states are paving the way for scalable, lasting impact. At DGB Group, we put nature first—designing and delivering large-scale nature restoration projects that harness the power of ecosystems to benefit communities, wildlife, and the planet. The momentum for high-integrity carbon projects is growing—now is the time to be part of it.
