While nature-based solutions are gaining traction, continued investment, data tracking, and integration with other mitigation strategies will be essential to maximize their impact.
Nature-based solutions (NbS) are crucial in Australia’s climate strategy but remain in early development. In 2022, the government launched a Nature Positive plan, committing to:
- Protecting 30% of Australia’s land and seas by 2030
- Creating a Nature Repair Market
- Establishing an independent Environmental Protection Agency
- Working in partnership with First Nations people, including developing standalone cultural heritage legislation
- Working towards zero new extinctions
The Department of Climate Change, Energy, the Environment, and Water lists four key areas for how Australia is supporting nature-based solutions. These include:
- Coastal blue carbon ecosystems
Australia is recognized as a global blue carbon hotspot, harboring approximately 12% of the world’s blue carbon ecosystems and holding between 5% and 11% of the global blue carbon stock.
Australia has made progress in support of blue carbon ecosystems. Most notable actions include:
- $ 30.6 million investment between 2020 and 2025 in actions supporting restoration, conservation, and accounting for blue carbon ecosystems in Australia and overseas
- Australia is among the few nations voluntarily reporting on human-induced GHG emissions and sequestration associated with coastal wetlands.
- The world’s first blue carbon methodology, led by Australia’s Emission Reduction Fund, was introduced in January 2022. This methodology enables better tracking of greenhouse gas (GHG) reductions and, therefore, enables more nature-based solutions to be incorporated into carbon markets.
Early trials show promise, such as a wetland restoration case study in Cairns, which achieved carbon abatement between 81,615 tCO2e and 141,688 tCO2e over the analysis period.
However, blue carbon projects remain in the early stages. The first Blue Carbon Farming project, to develop a mangrove ecosystem in the Maroochy River, only got the green light last year.
- National Soil Strategy
Recognizing the importance of soil in carbon sequestration and ecosystem resilience, Australia introduced the National Soil Strategy and its accompanying National Soil Action Plan in 2023.
Only two years into the plan, the immediate priorities include developing an established framework for measuring, mapping, and reporting soil conditions. A developed framework will enable improved data and reporting to make more informed nature decisions and future investments. An additional priority also includes promoting the importance of soil health, which in turn might increase adoption.
- Agriculture Biodiversity Stewardship Package
Australia has introduced agricultural programs to incentivize landowners in biodiversity conservation and carbon sequestration. Two key pilot programs include:
- Carbon & Biodiversity Pilot: This initiative is linked to the Australian Carbon Credit Units (ACCU) scheme, offering payments to landowners who plant native trees and shrubs to improve biodiversity, prevent soil erosion, and protect waterways. Participants must maintain projects for at least 25 years, with the option to extend to 100 years under the ACCU scheme.
- Enhancing Remnant Vegetation Pilot: This pilot funds landowners to enhance existing vegetation on their properties, with trials conducted in six regions.
These initiatives are forming the foundation for the Nature Repair Market, which was officially launched this year (2025). The Nature Repair Act, enacted in December 2023, supports the creation of biodiversity certificates that landholders can trade. The Australian Government has committed $40.9 million over two years (2024-25) to establish the Nature Positive Plan, which includes the Nature Repair Market. The hope for this Nature Repair market is to increase incentivization and investment in nature-based projects and more sustainable land management practices.
- Financing Solutions for Nature
As seen through the privatization of the Nature Repair Market and the introduction of blue carbon into the Australian carbon market, financing is prioritized as a key enabler for increasing nature-based solutions. Other mechanisms for driving private sector involvement in nature financing currently include:
- Nature Finance Council (established December 2023): This initiative seeks to channel private sector investments into projects with tangible environmental benefits. The Council also positions Australia as a leader in nature finance and supports commercializing emerging green markets.
- Nature Positive Matters Initiative: A public-private collaboration that fosters a network of business leaders advocating for the value of nature conservation in economic planning.
Impact on Emissions and Comparison with Other Approaches
Nature-based solutions provide multiple benefits beyond carbon sequestration, including biodiversity conservation, climate resilience, and ecosystem restoration.
The availability of structured tracking and methodologies, such as the blue carbon framework and the ACCU-linked biodiversity programs, will hopefully enhance transparency and promote further investment in nature-based solutions. However, data on the long-term effectiveness of these initiatives is still emerging. Nature-based initiatives require more time to deliver measurable emissions abatement than engineered solutions and come with various accounting complexities.
Conclusion
Coastal blue carbon restoration, agricultural biodiversity programs, soil health initiatives, and nature finance mechanisms collectively contribute to emission reduction and ecosystem resilience. While these solutions are gaining traction, continued investment, data tracking, and integration with other mitigation strategies will be essential to maximize their impact.
This Post was submitted by Climate Scorecard Australia Country Manager Jessica Gregory.