Launch of Softwood Plantation Projects and Carbon Credit Generation Projects in Australia
Nippon Paper Industries Co., Ltd.
Nippon Paper Resources Australia Pty Ltd (Managing Director: Atsushi Egawa; Head Office: Melbourne, Victoria, Australia; hereinafter “NPR”), a wholly owned subsidiary of Nippon Paper Industries Co., Ltd., (President and CEO: Akira Sebe; Head Office: Chiyoda-ku, Tokyo; hereinafter “NPI”) has launched a softwood tree plantation project and a carbon credit generation project in the Green Triangle region of Western Victoria, Australia.
Since 1996, NPR has been operating a hardwood tree plantation business in Australia with the aim of securing raw materials of pulp for NPI. As our existing hardwood plantations are now reaching maturity in stages, we have decided to switch to softwood species for reforestation. This policy aims not only to secure softwood raw materials for NPI but also to supply timber for residential construction, for which demand is expected to grow in Australia. Furthermore, the switch to softwood will enable the generation of new carbon credits.
Starting in 2026, we will gradually convert existing hardwood tree plantations into softwood. By 2028, as part of Phase 1 of the project, we will establish approximately 1,500 hectares of softwood plantations and generate carbon credits from these areas. Furthermore, leveraging the knowledge and expertise gained during Phase 1, we will explore expanding to a total of 10,000 hectares as part of Phase 2 of the project.
Australia’s carbon credit system, established under the Carbon Credits Act 2011 (Carbon Farming Initiative), is administered by the federal government’s Clean Energy Regulator (CER) and is highly regarded globally for its transparency and reliability. Under this system, a framework for the generation and trading of carbon credits, known as ACCUs (Australian Carbon Credit Units), within Australia has been established. NPR has already obtained approval from the CER in 2026 for the registration of its carbon credit generation project, and the generation and acquisition of carbon credits will begin in 2027 and beyond.
Furthermore, as demand for paper used in packaging and packaging materials continues to grow, and global demand for softwood woodchips, the primary raw material for these paper products, is also expected to increase, we acquired a New Zealand-based softwood woodchip production and export company in February 2026. In addition, by launching a softwood plantation business in Australia, we aim to secure a stable supply of resources for NPI and maximize the Nippon Paper Group’s revenue from timber-related businesses.
As a comprehensive biomass company “SHAPING THE FUTURE WITH TREES,” the Nippon Paper Group has adopted the “Green Strategy”—a growth strategy based on maximizing the value of forests and forest resources. Through this softwood plantation project in Australia, we aim to expand the Nippon Paper Group’s forestry and timber-related businesses and contribute to solving societal challenges.
(Planted Radiata Pine seedling) (Scenes from planting work at a plantation site)
Summary of softwood plantation
| Project Name | Green Triangle Treefarm（GRT） |
| Plantation Area | Approximately 1,500ha（Gross Area: Approximately 1,800ha） |
| Planting species | Pinus Radiata (Radiata Pine) |