Penfold Acts to Protect NSW North Coast Forestry Jobs from Labor’s Carbon Credit Raid

Federal Member for Lyne Alison Penfold MP will today introduce a Private Members Bill today to stop the Minns Labor Government using Australia’s carbon credit scheme to bankroll the Great Koala National Park at the expense of regional jobs and the integrity of the Australian Carbon Credit Unit (ACCU) system.

Ms Penfold said her Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026 would prevent governments from distorting the ACCU scheme for political purposes.

"The ACCU scheme was established to encourage genuine emissions reductions and new carbon sequestration projects," Ms Penfold said.

"It was never designed to reward governments for shutting down existing industries and then claiming carbon credits for doing so."

The Minns Labor Government has proposed an Improved Native Forest Management Method that is currently being considered by the Commonwealth's Emissions Reduction Assurance Committee (ERAC), which is the body that considers methodology proposals and makes a determination under the Act. 

The Premier has said that the final creation of the Great Koala National Park is contingent on approval of the carbon project.

"Labor announced the park first and is now looking for a way to make someone else pay for it," Ms Penfold said.

“If the Park is genuinely justified on scientific grounds, the government should make the case transparently and fund it honestly through the budget process.

"It should not seek to bastardise ACCUs, the original purpose of which was to incentivise new carbon abatement. Instead, the NSW proposal seeks credits for stopping an existing lawful activity through a government policy decision."

"If governments can simply change land-use policy and claim carbon credits as a reward, we risk turning the ACCU scheme into a funding mechanism for political decisions rather than genuine carbon outcomes."

Ms Penfold said the Minns Labor Government’s proposal had attracted criticism from both forestry and carbon market experts, with concerns raised about its validity, integrity and scientific basis.

She said the proposal also highlighted the lack of evidence supporting Labor's attack on the North Coast timber industry.

"The major threats to koalas are well known: urban development, vehicle strikes, dog attacks, disease and catastrophic bushfires."

"Forestry workers, timber mills and the many other businesses dependent on them are not the enemy. They are among Australia's most experienced environmental managers and operate under some of the strictest environmental regulations in the world."

Ms Penfold said more than 5,500 jobs across North East NSW depended on forestry and timber processing.

"Labor is cruelling a sustainable regional industry that supports families, supplies renewable building materials and underpins local economies."

"My Bill will strengthen transparency and ensure ACCU decisions are based on science, integrity and genuine carbon outcomes."

"Australia's carbon markets must not become a backdoor funding source for political projects,” she said.

Ms Penfold’s Bill will ensure that ERAC decisions are in accord with the actual Objects of the Act and that all documentation, modelling and science relevant to the determination is made available for public consultation to allow proper scrutiny.