Andrew Morgan, Managing Director of SFM Agribusiness, a leading forest management operator (timber and carbon projects), joins me to discuss the evolution of Australia’s compliance carbon market. We look at its standards, methodologies, pricing, and the main Australian Carbon Credit Units (ACCU) buyers. Andrew shares insights on SFM’s “ActivAcre” model, which partners landowners with institutional investors, and explores how carbon credits are reshaping forestry portfolios.
If you'd asked me 3 or 4 years ago, carbon and a carbon strategy weren't even considered by most institutional investors when looking at larger assets. It's now a really important part of the value. Traditionally, it was the land and the tree crop. There's now land, tree crop, and carbon. And it could be forming 20 - 30% of the total valuation.
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SFM - Plantation Carbon Partners
Founding Director and Host: Shauna Matkovich - The ForestLink
Producer and Editor: Magdalena Laas - Unscripted Creatives
[0:48] Background & SFM Agribusiness
[2:25] SFM’s Role in Forest Investment Operations
[3:16] Evolution of Carbon Forestry (Australia)
[6:31] Understanding Carbon Project Methodologies (Schedules 1–4)
[8:02] First Carbon Project & Early Learnings
[9:06] The Drivers: Climate & Timber Deficit
[10:22] Land Constraints & Strategic Aggregation Models
[11:27] How the Australian Carbon Market Works
[12:23] Pricing, Credit Types & Market Trends
[13:48] Buyers in the Compliance Carbon Market
[15:20] Compliance vs. Voluntary Markets
[16:22] Strengths & Weaknesses of the Compliance System
[17:50] Challenges with Timelines, Audits & Approval Delays
[20:03] Investor Confidence & Carbon Modeling
[21:05] Market Demand Outlook to 2033
[22:01] Carbon's Emerging Role in Asset Valuation
[23:44] The Active Acre Model: Origins & Design
[26:33] Retail-Focused Landowner Partnerships
[28:56] Land Aggregation Strategy & Regional Development
[30:01] Farmer Engagement & Early Adoption Curve
[30:52] Landowner Concerns: Tenure, Risk & Trust
[32:14] Fire Risk Management & Industry Networks
[33:57] Certification, Biodiversity & AU Plus Potential
[34:39] Flexible Models for Participatory Land Use
[35:26] Investor Perspectives: Risk, Pipeline & Land Use
[38:12] Real Estate Pipeline Management & Land Suitability
[40:49] Evolving Client Base: Emitters & AU Offtake
[42:22] Unlocking Plantation Forestry Potential
[44:36] Emerging Trends in Nature-Based Solutions
[46:36] Communicating the Value of Forest Management
[49:08] Actionable Advice for New Investors
Nature by MaxKoMusic/Soundcloud
Sopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud
Ambient Documentary by Sound Guru (Pixabay)
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