Follow the Money for Great Koala National Park

Timber NSW

• The NSW Government has been working with the Australian National University to develop a carbon credit scheme called Improved Native Forest Management, which would generate Australian Carbon Credit Units (ACCUs) by halting native forest harvesting in State forests.
• A timeline of events reveals the scheme has been in development since early 2024, with the Great Koala National Park announced in September 2025 but deliberately not gazetted in order to secure carbon credit funding of potentially up to £1 billion over 15 years.
• Timber NSW Chief Executive Maree McCaskill has accused the NSW Government of concealing the scheme from the public, arguing that incentivising the conversion of State Forests to National Parks and restricting forestry on adjoining private land is obscene.
• Carbon leakage penalties within the scheme are reportedly capped at a 40% discount, despite independent research from the University of Queensland calculating timber harvest leakage at over 80%, with much of the displaced demand likely being met by high-risk countries.
• The forestry sector, which supports thousands of jobs and significantly contributes to regional economies across NSW, faces long-term consequences as productive forests are locked away, with decisions potentially binding future governments for 100 years.

It all comes down to money. Not koalas, not timber, not communities – just money.

The NSW Department of Climate Change, Energy, the Environment and Water has been working with the Australian National University to create new requirements for generating carbon credits under the Australian Carbon Credit Unit Scheme based on getting paid for locking up forests previously accessed for forestry. It’s called Improved Native Forest Management in Multiple-use Public Native Forests

According to Timber NSW Chief Executive Maree McCaskill, ‘This is the big lie that the NSW Government has been hiding from the people of NSW.

• Early 2024. The NSW government began investigating a carbon method that would generate Australian Carbon Credit Unit (ACCU) by stopping native forest harvesting in State forests
• 2 July 2024 – NSW lodged an Expression of Interest for an Improved Native Forest Management carbon credit scheme.
• 30 October 2024 – Federal Minister Bowen, Minister for Climate Change and Energy, prioritised the proposal.
• 2024–2025 – Technical development and consultation by NSW government.
• 7 September 2025 - Great Koala National Park announced but importantly, not gazetted, because they would risk missing out on the money.
• June 2026 – Official Commonwealth approval by Minister Bowen on the Australian Carbon Credit Unit (ACCU) method for native forest management.
• Next – but before State Election in March – Formal acceptance of taxpayers money and Gazetting of Great Koala National Park.

‘Incentivising State governments with as much as $1b over 15 years to change State Forest to National Park and to exclude forestry activities not only in the gazetted park but also on privately owned land adjoining the park is obscene. Furthermore, the current State government is locking in decisions of future Governments for 100 years – more than a lifetime.

‘The Sydney Morning Herald reported that; “There are also leakage clauses, providing penalties if logging of public forest increased elsewhere in the state on private or public land, or if there is an increase in imports of unsustainable timber”.

What is not reported is that only a maximum of 40% of the carbon leakage (both domestic and international) can be discounted by the Commonwealth despite that figure being widely debunked and calculated by Dr Tyron Venn et al from UQ at over 80% for timber harvest leakage, with most of the demand met by elevated-risk countries.  Again, follow the money.

‘Communities across NSW are increasingly concerned that productive forests are being locked away without a clear understanding of the long-term adverse economic and social consequences. Now we know why,’ said Maree.

The forestry sector supports thousands of jobs across NSW and contributes significantly to regional economies through timber harvesting, transport, processing and manufacturing. It is an undisputed fact that sustainably managed state forests can and do deliver both conservation and economic outcomes.

Our mission is to work with our members, stakeholders and the broader industry to build an economically, environmentally and socially sustainable timber industry in New South Wales.