The Clean Energy Finance Corp., Australia’s green investment bank, committed $40 million to a reforestation project on the Tiwi Islands that is being developed in partnership with the Tiwi people who inhabit and steward the islands.
Melbourne-based asset manager River Capital joined as an investor, bringing the total investment to $81 million.
The project, which will plant 74,000 acres of native tree species, is expected to remove or store the equivalent of five million tons of CO₂ over time, generating carbon credits to be sold in Australia’s regulated carbon market. The investment is directed to Tiwi Plantations Corp., a forestry company owned and governed by the eight Tiwi clans. Plantation and carbon operations will be managed by carbon project developer Midway Pty.
“With this project, we are creating new commercial investment models for meaningful collaboration with Indigenous communities,” said CEFC’s Heechung Sung. “This initiative is a unique opportunity to restore productive forest ecosystems using native species, delivering lasting carbon, environmental and economic outcomes.”
Indigenous finance
Australia’s Tiwi islands were heavily deforested under government control in the 19th century. The Tiwi people now own and manage nearly all the land. The plantation is expected to produce around 424 million cubic feet of premium wood products over the project’s lifetime. The timber will be used in construction, reducing pressure on native forests.
“The Tiwi Plantations Corporation represents the land for our people. We’ve got to look after the land very well for the next generation coming,” said the corporation’s Kim Puruntatameri. “To keep the environment strong, we need to work together with people from outside.”
