Australia Sees Record Avoided Deforestation Credits

Carbon credit issuances hit a new monthly high in September 2026 after a surge in forest biomass growth.

Updated on Oct. 21, 2026 in Organic Food

Australia Sees Record Avoided Deforestation Credits

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Avoided deforestation carbon credit issuances reached a record 1.95 million Australian Carbon Credit Units in September 2026. This accounted for over 60 percent of total issuances for the month.

Why it matters

The surge in credits stems from growth in forest biomass over crediting periods, reflecting successful project results verified by field surveys. This influx significantly expands the available supply of carbon offsets in the national market.

Avoided deforestation credits totalled 1.95 million units in September 2026 out of 3.15 million total issuances. Prices for generic Australian Carbon Credit Units closed at A$37.75 per metric tonne of CO2 equivalent on 20 October 2026.

The players

Terra Carbon

This organisation acts as the primary proponent and agent for the avoided deforestation projects that produced the record-breaking credit volume.

The details

Terra Carbon led all projects by issuing these credits, which were earned when field surveys demonstrated eligible increases in forest carbon stocks. The total supply of these specific credits during August and September 2026 has already surpassed the annual supply totals of each of the previous six years.

Annual supply from 2020 to 2024 ranged between 2.28 million and 2.37 million units.
Supply reached 2.67 million units during the 2024 to 2025 period.
The annual supply for July 2025 to June 2026 was 900,304 units.
Avoided deforestation supply reached 735,153 units in August 2026.
Issuances reached a record high of 1.95 million units in September 2026.

Roadmap

This rapid expansion in credit supply signals a major shift in the domestic carbon market, moving beyond historical output levels. It positions Australia to meet ambitious climate programme targets by leveraging increased biomass growth verification.

The increased supply of carbon credits may influence the broader cost of offset programmes for Australian businesses seeking to meet environmental standards. Readers should monitor these market shifts as they could impact the pricing of carbon-neutral products and services.

The takeaway

The surge in credits illustrates the growing importance of precise field surveys in validating forest biomass growth for climate reporting. Organisations involved in land management should ensure their monitoring programmes align with these evolving verification standards.