Carbon Offset On Track

Western Australian sandalwood plantations offer a unique and high-value opportunity for carbon offsetting, combining sustainable forestry with long-term environmental and commercial benefits. As industries seek to reduce their carbon footprints, plantation-grown Santalum spicatum is emerging as a viable solution, helping businesses meet their net-zero commitments while supporting biodiversity and land rehabilitation.

How Sandalwood Offsets Carbon

Unlike traditional monoculture forestry, WA sandalwood plantations are often established on degraded or low-productivity land, where they actively restore ecosystems while sequestering carbon. Sandalwood ecosystems absorb significant amounts of CO₂ over their 25 to 30-year growth cycle, storing carbon in both their biomass and surrounding soil. Additionally, sandalwood’s parasitic nature, requiring host species to thrive, encourages multi-species planting, further enhancing carbon sequestration potential.

Silvalis and Australian Carbon Credit Unit (ACCU) Approvals

With the Australian Government’s Australian Carbon Credit Unit (ACCU) scheme, sandalwood plantations are now being recognized as a certifiable carbon offset project. Under ACCU guidelines, projects that demonstrate measurable carbon sequestration and sustainable land management can generate carbon credits, which can then be sold to businesses and investors seeking climate-positive assets. The approval process requires compliance with strict methodologies, including monitoring growth rates, carbon storage, and environmental benefits over time. Silvalis projects established since 2021 have successfully registered with the Clean Energy Regulator, and are accruing ACCUs

A Profitable and Sustainable Investment

The integration of carbon credits with sandalwood production provides dual-income streams for investors—both from high-value timber and essential oil markets, as well as carbon offset sales. As demand for regulated carbon credits grows—particularly from companies aiming for net-zero emissions—WA sandalwood plantations stand out as an attractive, long-term investment that aligns commercial success with climate resilience and environmental restoration.