Native forest regeneration carbon project methodologies

Pastoral Partners Australia owns and operates 12 properties across Queensland, 11 of which, have active carbon projects running. 10 of these carbon projects are registered under the Native Forest from Managed Regrowth (NFMR) methodology and one is registered under the Human Induced Regeneration (HIR) methodology.

But what are these methods and how do they work for Pastoral Partners Australia? Below we break down the two methods and the differences while also highlighting upcoming methodologies, we’re keeping our eyes on.

Native Forest from Managed Regrowth (NFMR) methodology

The Native Forest from Managed Regrowth (NFMR) carbon project methodology was one of Australia’s highest-integrity nature‑based carbon solutions. At Pastoral Partners Australia, we designed carbon projects using the NFMR methodology to regenerate native forests on previously cleared land, restore native ecosystems, and generate high‑integrity Australian Carbon Credit Units (ACCUs), while maintaining productive grazing land.

Under Australian legislation, all ACCU methodologies automatically “sunset” after 10 years. The NFMR methodology reached that point on 31 March 2024 and is no longer open for new projects. New and updated methods are currently being developed and will take its place, ensuring the continuation of robust, science‑based approaches to native forest regeneration. While we await the rollout of these new methodologies, the NFMR method remains valid for existing registered projects and continues to operate as legislated.

What Is the NFMR Methodology?

The NFMR methodology, regulated by the Clean Energy Regulator, supports the natural regeneration of native forests on land that has been historically cleared as well as being suppressed by grazing livestock in many cases. Instead of planting trees, the NFMR methodology focuses on allowing existing native vegetation to regrow by changing land management practices, which must include the cessation of clearing. In addition, other management changes such as managing the timing and extent of grazing, controlling feral animals and plants can also be adopted to facilitate the regeneration of vegetation to achieve a native forest.

NFMR projects are designed to:

• Increase carbon sequestration by allowing previously cleared land to regenerate to native forest
• Restore native ecosystems
• Improve land condition
• Generate high-integrity ACCUs

The NFMR methodology is one of the most robust nature-based regenerative vegetation methodologies available in Australia.

How NFMR carbon projects work

NFMR (Native Forest from Managed Regrowth) carbon projects follow a simple but rigorous process designed to regenerate native vegetation and generate high‑integrity ACCUs.

1. Identify eligible land

Projects begin on land that has been historically cleared and suppressed but still has the natural ability to regenerate a forest. Eligibility is confirmed through a combination of some or all of the following: vegetation management history, government datasets, satellite imagery, aerial photography, and on‑ground assessment.

2. Change land‑management practices

Landholders adjust management to allow native vegetation to regrow. They must include:

• The cessation of mechanical clearing or chemical destruction of native vegetation

And may also involve one or more of the following:

• Managing the timing and extent of grazing
• Exclusion of livestock
• Managing feral animals in a humane manner
• Managing plants that are not native to the project area

These changes create the conditions for natural forest regrowth.

3. Measure carbon sequestration

As vegetation regrows, it stores carbon. The carbon dioxide sequestered by the regenerating vegetation is modelled using an approved model, FullCAM, which is a calculation engine that estimates changes in carbon stock in forests and agricultural land. The areas (CEA eligible areas) over which the model is applied are refined using remote sensing, field data, and are subjected to independent audits to ensure accuracy and transparency.

4. Generate ACCUs

For every tonne of CO₂-e stored, the project earns an Australian Carbon Credit Units (ACCU). These credits are Climate Active eligible and recognised as high-integrity, nature-based offsets. Projects are then maintained under a 100-year permanence period.

Human-Induced Regeneration (HIR) carbon project methodology

The Human‑Induced Regeneration (HIR) methodology is an Australian carbon methodology that supports the regeneration of native forests by changing how land is managed. Instead of planting trees, HIR focuses on removing or reducing activities that suppress natural regrowth, such as unmanaged grazing, feral animals, feral plants and repeated mechanical clearing, or chemical suppression of regrowth.

Under the HIR method, landholders implement deliberate management changes that allow native vegetation to return and mature into forest. As the vegetation regrows, it stores carbon, which is measured and converted into Australian Carbon Credit Units (ACCUs).

Pastoral Partners Australia currently has one project, Tippendale, registered under the HIR methodology, complementing our broader portfolio of Native Forest from Managed Regrowth (NFMR) projects across Queensland.

What is the difference between NFMR and HIR carbon projects?

The Human‑Induced Regeneration (HIR) and Native Forest from Managed Regrowth (NFMR) methodologies both generate ACCUs by restoring native vegetation, but they differ in how projects prove eligibility and establish baselines. HIR requires strong historical evidence that vegetation was actively suppressed and that regeneration would not occur without deliberate management changes known as HIR activities. The baseline for an HIR project is taken to be Zero and there is no requirement to model and deduct a baseline from the project carbon stocks.

NFMR, by contrast, requires that native forest regrowth is based on a proven historical comprehensive clearing event (or events) which may also be followed by suppressive grazing, and that the cessation of clearing and suppressive grazing enables the forest to regenerate. The NFMR methodology requires a baseline to be modelled in FullCAM and deducted from the project carbon stocks where the carbon stocks reached a material level in the 10 years immediately preceding the project’s commencement.

Upcoming methodologies

Pastoral Partners Australia remains informed of the developing regeneration methodologies, including the Integrated Farm and Land Management (IFLM) method and the Avoided Re-Clearing and Native Reforestation (ARNR) method. These methods are expected to be implemented in the second half of 2026 and will be used by Pastoral Partners Australia for future carbon projects.