Department of Planning and Environment

NSW Blue Carbon
Strategy 2022–2027

environment.nsw.gov.au

Acknowledgement of Country
The NSW Government acknowledges the Traditional Custodians of thelands and waterways to which this NSW Blue Carbon Strategy applies, andpays respect to Elders past, present and future. The NSW Government
recognises and respects the continuation of cultural, spiritual andeducational practices of First Nations peoples.
The development of this strategy acknowledges more than 60,000 yearsof continuous First Nations connection to the land, waterways and sea
that make up NSW.
First Nations peoples knowledge and management of the land and sea
are based on deep spiritual connections with Country. Country takes ineverything within the cultural, spiritual and physical landscape – landforms,
waters, plants, animals, foods, and special places. These continued
connections are also visible in their songs, stories, dances and art, andreinforced by their continued cultural practices and knowledge of Country.
As part of the world’s oldest living culture, First Nations of the Australiancontinent and adjacent islands share a unique bond to Country–a bond forgedthrough thousands of years of interaction with land and sea environments.

The traditional name for
Hexham Swamp in the Hunter
Valley is Burraghihnbihng.
The area has significant
cultural value to the Awabakaland Worimi people who usedthe vast resources provided
by the productive wetlands.
Jo Erskine/NPWS.
NSW Blue Carbon Strategy 2022–20272Foreword
The simplest way to understand the concept ofblue carbon is to liken it to underwater rainforests– just as trees store carbon, marine plants andecosystems do too, except more efficiently.
This is blue carbon, and it represents a major opportunity to restore
biodiversity and ecosystems, while simultaneously working towards
emissions reduction.
As an island surrounded by vibrant coastlines, we are lucky in Australia
to have great potential for blue carbon projects, and I want to make sure
NSW is at the forefront.
In NSW, our marine and coastal ecosystems currently store about
10 million tonnes of carbon. That’s equivalent to emissions from
500,000 households.
We have more than 2,000 kilometres of NSW coastline and surrounding
areas that could support the storage of additional blue carbon, which
would significantly contribute to our goal to reduce carbon emissions.
We also know that businesses are keen to invest in blue carbon
because it delivers carbon reduction and biodiversity improvements,
while meeting increasing demand for ‘Environmental, Social andGovernance’ criteria.
There are also benefits for communities up and down the coast fromgreater climate resilience, income for landholders, and habitat for themarine life, which underpins our blue economy.
This NSW Blue Carbon Strategy 2022–27 is aimed at kick-starting
blue carbon in NSW, and supporting us with a scientific evidence baseneeded to make the right decisions.
The strategy will help us to forge partnerships, including with private
landholders and investors, because we are stronger and more effective
when we work together to achieve our shared goal of protecting andconserving our environment.
This is a landmark strategy for NSW, and it delivers so many exciting
opportunities to conserve our marine environment for future generations.

The Hon. James Griffin, MP
Minister for Environment and Heritage

NSW Blue Carbon Strategy 2022–2027

3

Contents
Acknowledgement of Country2

Foreword

3

NSW Blue Carbon Strategy

5What is blue carbon?
Blue carbon in coastal ecosystems
Blue carbon projects can help achieve net zero goals
Blue carbon ecosystems in NSW
Potential areas for blue carbon restoration
Why is blue carbon important in NSW?
Opportunities for blue carbon in NSW

Priority area 1: Conserving blue carbon ecosystems
and supporting their adaptation and migration
Determining effectiveness of legislative mechanisms
Supporting private land conservation
Investigating opportunities to support seagrassand seaweed conservation
Promoting and supporting blue carbon ecosystems on public
and private land

5
6
7
8
9
10
10

11
11
12
12
12

Priority area 2: Delivering blue carbon projects on public,
private and First Nations peoples owned and managed land 13
Addressing landholder hesitancy and financial barriers
Identifying and progressing ten new blue carbon restoration sites
Advising, guiding and supporting landholders and primary producers
Supporting First Nations peoples and their communities
Everlasting Swamp — a site of high blue carbon potential
Duck Creek — a site for building capacity with coastal land managers

Priority area 3: Embedding blue carbon in coastal andmarine policy planning and management
Reviewing the NSW planning system and streamlining approvals
Supporting councils to integrate blue carbon projects in coastalmanagement programs and transition land use
Determining Marine Estate Management Strategy opportunities

Priority area 4: Progressing blue carbon research
Identifying potential funding pathways for research priorities
Understanding and improving valuation and benefits
Exploring opportunities to pilot a kelp forest restoration project

NSW Blue Carbon Strategy 2022–2027

18
18
19
19

20
20
21
21

Priority area 5: Promoting blue carbon investment

22

Driving investment in blue carbon
Investigating blue carbon financing models and pathways
with stakeholders
Piloting a Blue Carbon Instrument and kick starting the
NSW blue carbon market

23

Delivering the strategy
Hexham Swamp/DPI

14
14
15
15
16
17

Overview of priority areas, objectives, outcomes and actions

23
23

24
24
4

NSW Blue Carbon Strategy
The NSW Blue Carbon Strategy is a statewide
initiative to support evidence-based projects
and research to protect and conserve important
blue carbon ecosystems.
The strategy will help unlock the investment potential of blue carbon
projects through carbon credits and other mechanisms that will ultimately
benefit the state’s economy and build our resilience to climate change.
The strategy identifies 5 overarching priorities and the actions
we will deliver under each priority over the next 5 years.
blue carbon ecosystems and supporting
1. Conserving
their adaptation and migration.
blue carbon projects on public, private and2. DeliveringFirst Nations peoples owned and managed land.
mbedding blue carbon in coastal and marine policy
3. Eplanningand management.

4. Progressing blue carbon research.
5. Promoting pathways for blue carbon investment.
What is blue carbon?
Blue carbon is the carbon captured and stored
in coastal and marine ecosystems, including
seagrass meadows, saltmarshes, mangroves
and supratidal forests.
When healthy, these ecosystems are efficient natural carbon sinksthat accumulate and retain large quantities of carbon, both in the living
plants and in the sediments and biological material below the ground.
For example, approximately 97% of carbon in seagrass meadows isstored in the sediment.
In addition to their carbon storage benefits, blue carbon ecosystems
provide a range of co-benefits such as jobs and income for local economies,
improving water quality, supporting healthy fisheries and opportunities
for investment, recreation and nature-based tourism.

RAMSAR Wetlands Towra Point
John Spencer/DPE
NSW Blue Carbon Strategy 2022–2027

5Blue carbon in coastal ecosystems

97%≈

of carbon in seagrassmeadows is stored
in the sediment

These ecosystems are estimatedto store nearly

Mangroves store
approximately

50%

10 million tonnesof total carbon stock in NSW.

Saltmarshes
store

Equivalent to the annual
emissions of

28%≈ 500,000

Seagrass accounts forAustralian households.

Australia’s coastline
stores approximately

5–11%
of global blue
carbon stocks.

22%

NSW is estimated to have:

Seagrass

Saltmarshhectareshectares15,300Mangroves

Kelp forest

hectareshectares13,700NSW Blue Carbon Strategy 2022–2027

7,100

14,8006

Blue carbon projects can help achieve net zero goals
Globally and in Australia, the importance of blue carbon ecosystems ascarbon sinks is increasingly being recognised and valued, given Australia
holds 5-11% of global blue carbon stocks.
Despite blue carbon ecosystems supporting our quintessential coastal
Australian lifestyle, we are losing them. Since European settlement
across Australia, we have lost approximately 50% of saltmarshes, 52–78%
of mangroves and 20–26% of seagrass meadows.
Degraded blue carbon ecosystems are a significant source of greenhousegas emissions by releasing methane and the carbon into the atmosphereand oceans. Drained wetlands are the source of acidic or black water runoff
which can cause large-scale fish kills and poor water quality.
The conservation and restoration of blue carbon ecosystems can address
issues such as acid sulfate soils and inundation, and also support in the
mitigation of and adaptation to climate change.

Net Zero Plan Stage 1: 2020-2030
The Net Zero Plan Stage 1: 2020-2030 is the foundation for NSW’s action
on climate change and goal to reach net zero emissions by 2050. It outlines
the NSW Government’s plan to reduce emissions up to 2030.
Blue carbon ecosystem restoration and protection can help achieve
2 priorities of the Net Zero Plan Stage 1: 2020–2030:
Quibrary Bay viewing platform,
Towra Point Nature Reserve.
John Spencer/DPE•

Priority 1 Drive the uptake of proven emissions reduction technologies,•

Priority 4 Ensure the NSW Government leads by example.

Hexham Swamp. Peggy Svoboda/
Local Land Services.

NSW Blue Carbon Strategy 2022–2027

7

Blue carbon ecosystems
in NSW
Mangroves

4x

Mangroves have been

spreading

per area asland-based forest.

into areas of saltmarsh as aresult of environmental change

If undisturbed can store carbon in soils>100 years
Matching upslope
migration of saltmarsh
is often constrained bypublic infrastructure
and land uses
In mapped estuaries, there has
been an increase in mangrovesin 17 estuaries and a decline in 3

17 3

NSW kelp forests form part of the‘Great Southern Reef’

which extends from the NSW/Queensland border, 8,000 km along theAustralian continent’s southern coastline to Western Australia.
Great Southern Reef kelp forests
are estimated to sequester and store>30%of the total blue carbon around the Australian continent, with mostoccurring within the 3 nautical miles of state coastal waters.
Blue carbon ecosystem loss since European settlement across Australia:

Saltmarshes

Saltmarsh

38%of estuaries mapped in thepast 5 years have shown asignificant
decrease
NPWS

Carbon Positive by 2028 Plan
details actions to enhance carbon
sequestration.

+by 2028NSW Blue Carbon Strategy 2022–2027–50%

Mangroves–52 to –78%
Seagrass meadows–20 to –26%
NSW National Parks and Wildlife
Service manage greater than
40% of the NSW coast.
This represents one ofAustralia’s largest
carbon stores.

40%
8Potential areas forblue carbon restoration

2.3

A landholder’s right to carry out agriculturaland developmental activities on their land are
not altered by their property being identified
on this map. Any involvement by a landownerin delivering blue carbon projects on their landis entirely voluntary.
NSW Blue Carbon Strategy 2022–2027

9

Why is blue carbon important in NSW?
In addition to the carbon sequestration benefits of blue carbon
ecosystems, these assets also provide us with a range of co-benefits,called ecosystem services, including:Protection against increasingly regular and severe
climatic events, via:•

stabilising foreshores and reducing wave energy
to reduce coastal erosion•

trapping sediment and improving water quality•

reducing risk to coastal communities from inundation
and resultant insurance payout and premium risk

Mitigation against species loss•

conserving and enhancing important habitats•

maintaining biodiversity and ecosystem integrity•

improving resilience to the impacts of climate change

Tourism and recreational benefits•

increasing opportunities for fishing, coastal travel
and recreation

Agriculture benefits•

increasing industry resilience and helping economic
diversification•

supporting healthy fish populations, fisheries
and aquaculture•

trapping pollutants, nutrients and sediment in runoff

First Nations connection to Country

RAMSAR Wetland Towra Point.
John Spencer/DPE

On average,these ecosystems
are being lost or
degraded at a rate of

1–2%

•

maintaining spiritual connection•

providing employment opportunities in management
and protection•

enhancing wellbeing benefits

Opportunities for blue carbon in NSWThis strategy recognises that blue carbon opportunities can berealised by supporting a range of priority initiatives in collaboration
with First Nations, local communities, councils, and other stakeholders.
It aims to provide the catalyst for action, increase participation in theemerging blue carbon market and leverage the many co-benefits of blue
carbon projects.

every year globally.

NSW Blue Carbon Strategy 2022–2027

10

Priority area 1:
Conserving blue carbon ecosystems
and supporting their adaptationand migration
The NSW Government will take a lead role inworking with all levels of government, industries,
landowners, and communities to conserve existing
blue carbon ecosystems.

1.1

1.2

1.3

1.4

1

Action 1.1: Determine effectiveness of blue carbon
ecosystem legislative protection, conservation and climate change
adaptation mechanisms.
Action 1.2: Support private and public land covenanting
arrangements and other funding options to manage and conserve
blue carbon ecosystems.
Action 1.3: Investigate opportunities to support seagrassand seaweed ecosystem conservation projects.
Action 1.4: Promote and support the conservation, adaptationand migration of blue carbon ecosystems by the communityand organisations on public and private land.

Existing controls and measures to conserve
blue carbon ecosystems
Determining effectiveness oflegislative mechanisms

1.1

Many blue carbon ecosystems already benefit from protection
under Commonwealth and NSW Legislation. The Ramsar Convention
protects 3 internationally significant wetlands in the coastal zone.
The Coastal Management Act 2016 specifies management objectives
that are to protect, rehabilitate and improve the resilience of coastal
wetlands, including opportunities for migration. The Resilience andHazards State Environmental Planning Policy includes development
controls to protect coastal wetlands and guide appropriate
development. Several other Acts, including the Fisheries Management
Act 1994 protects seagrass, mangrove and saltmarsh species.

Royal National Park aerial view.
David Finnegan/DPE
NSW Blue Carbon Strategy 2022–2027

11

Coastal Wetlands of the Lower Myall River
mapped by the Resilience and Hazards SEPP

Supporting private land conservation
In 2018, the NSW Government released a Biodiversity Conservation
Investment Strategy to guide investment for private land conservation.
The strategy outlines criteria to help government prioritise where
investment in private land conservation should occur in NSW.
Restoring mangroveson Shoalhaven River.
Daniel Wiecek/DPE

The NSW Government will work with the Biodiversity Conservation Trustto accelerate new opportunities to protect blue carbon ecosystem.

Investigating opportunities to support seagrassand seaweed conservation

Seagrass marine life habitat.
Rosie Nicolai/DPE

1.2

1.3

Seagrass meadows store large amounts of carbon and provide food,shelter and nursery grounds for many important marine organisms.
A range of organisations are leading innovative work to restore seagrassecosystems in NSW. Continued delivery of projects like these are criticalin building the resilience of blue carbon ecosystems to human impacts
and climate change. Through supporting both current and future researchand restoration efforts, we will be able to gain further understanding of
ecosystem function and co-benefits for others to use and demonstrate
suitability for wider uptake.

Promoting and supporting blue carbon
ecosystems on public and private land

1.4

The NSW Government will work with stakeholders and the community toinvestigate a variety of mechanisms that may be suitable for conservationof blue carbon ecosystems on public and private land.

Imeson Cottage, Cape Byron
State Conservation Area.
John Spencer/DPE

NSW Blue Carbon Strategy 2022–2027

For example, private land conservation initiatives may also play an importantrole. Mechanisms such as conservation agreements and grant funding
complement the protection of National Park blue carbon ecosystems andmaintain regulatory controls. In addition, initiatives such as ‘rolling’ voluntary
conservation covenants could allow for conservation covenants on land title.

12

Priority area 2:
Delivering blue carbon projects on
public, private and First Nations
peoples owned and managed land
The NSW Government will address barriers and provide
support to deliver new blue carbon projects. We will
also examine the best way to provide advice and othersupport to land managers such as primary producers,
councils and First Nations communities.

2.1

2.2

2.3

2.4

2

2.5

Action 2.1: Explore options that address landholder hesitancy,
remove financial barriers and deliver Clean Energy Regulator
registered projects.
Action 2.2: Identify and progress 10 new sites for blue
carbon restoration with potential for registration with the
Clean Energy Regulator.
Action 2.3: Provide advice, guidance and support to landholders
and primary producers to help their decision making.
Action 2.4: Provide support to First Nations peoples and theircommunities to integrate blue carbon projects into Sea Country
management.

Action 2.5: Progress blue carbon demonstration projects at
Duck Creek Agricultural Research Station, Ballina and theEverlasting Swamp wetland complex.

Everlasting Swamp National ParkJohn Spencer/DPE
NSW Blue Carbon Strategy 2022–2027

13

Addressing landholder hesitancy andfinancial barriers

2.1

NSW has a strong track record in delivering coastal ecosystem
restoration projects that have blue carbon values.
In collaboration with partners, multiple wetland restoration
projects including staged restoration of tidal flows to the Hexham Swamp,
Kooragang Island, and Tomago in the Hunter Estuary Wetlands, andto the Yarrahapinni Wetlands on the Macleay River, have been delivered
in collaboration with agencies and partners.
An important lesson from these projects is that navigating planningand other regulatory approvals can be complex. The NSW Government
will examine options to simplify planning, regulatory and administrative
approval pathways for blue carbon projects. This will include approval
processes for projects on Crown Lands and Crown waterways.
The emerging nature of the blue carbon market can also be a barrier
to broader uptake. Land managers can be encouraged to adopt carbon
farming practices when there are broader co-benefits of a project suchas enhanced agricultural productivity, and benefits to the environment.
The restoration of natural flows and enabling habitats to migrate can also
help build resilience to the impacts of climate change and sea level rise.

Zoysia macrantha saltmarsh
Hunter Wetlands National Park.
Doug Beckers/DPE

Blue carbon projects also offer an opportunity for landowners to transition
from land uses that may become unprofitable or no longer viable in the
future due to climate change and sea level rise.
These projects can enable landowner to remain in their local community,
provide greater flexibility to diversify their income and adopt more resilientand sustainable land use practices.

Identifying and progressing 10 new
blue carbon restoration sites

2.2

NSW Coastal Wetland Restoration First Pass Prioritisation Report
identified potential opportunities for high blue carbon projects
on coastal floodplains of northern NSW.
The NSW Government is committed to developing 10 blue carbon
demonstration projects. The experience of various organisations in NSW
places the state in a leading position to continue delivering ecosystem
restoration projects, distil learnings for others and pilot innovative projects
to demonstrate suitability and encourage wider uptake.

Mangroves at DPI Duck Creek
Research Station. Patrick Dwyer/DPI

NSW Blue Carbon Strategy 2022–2027

Demonstration blue carbon projects will be a critical part of building
the resilience of our estuaries and coastlines to climate change andmaintaining the extensive blue carbon that they store. They will also
show how blue carbon can be a part of a viable business enterprise mix
for primary producers, private landholders, local councils or First Nations
people and their communities.

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Advising, guiding and supporting landholders
and primary producers

2.3

The NSW Government, as part of the Marine Estate Management
Strategy, funded a project that assessed the potential of coastal
wetlands in NSW to achieve carbon abatement through therestoration of tidal flows.
The project found that there is approximately 60 km2 of high blue carbon
potential area upstream of tidal barriers in NSW, with roughly 4,200 instream
tidal barriers identified throughout the state. The north coast of NSW
was identified as having particularly high blue carbon potential, including
the Richmond River, Clarence River and Macleay River catchments.
Additional information is required so that land managers can make informed
decisions around repairing or creating new tidal barriers, or removing a tidal
barrier so they can take advantage of carbon financing linked to blue carbon
ecosystem restoration.
Jerusalem Creek, mangrove andsaltmarsh area. John Lugg/DPE

The project also identifies potential areas to leverage the managementof public lands as demonstration sites and involve public land managers
and agencies as key delivery partners.

Supporting First Nations peoples andtheir communities

2.4

The NSW Government is committed to understanding how blue carbon
projects could present opportunities for First Nations peoples owned
and managed land and how they may intersect and rights, native title
interests and Sea Country management. This is key if we are to move
forward with reconciliation and achieve social, cultural and environmental
outcomes in NSW.
The NSW Government has already begun conversations on how best
to involve First Nations communities in Duck Creek and Everlasting Swampdemonstration projects.
Jerusalem
mangrove
EverlastingCreek,
Swamp
NationalandPark.
saltmarsharea. John Lugg/DPE
John Spencer/DPE

NSW Blue Carbon Strategy 2022–2027

The government is committed to having broader conversations aroundthe support needed for First Nations peoples to tap into potential economic
benefits associated with blue carbon projects.

15

Pilot demonstration projects

2.5

Everlasting Swamp– a site of high blue
carbon potential
Everlasting Swamp National Park.
John Spencer/DPE

The project could restore at least:

556 haof high blue carbon potential area

Delivery of this project is dependent on registration with the Clean Energy Regulator.

Establishing blue carbon demonstration projects
is important to advance scientific knowledge,
understand delivery challenges, build capacity
and scale up participation.

State outcomes
Connecting communities to resilient andsustainable energy and local environments
Productive and sustainable land use
Stronger and cohesive regional communities
and economies
Fair, secure and efficient markets
A strong, resilient and diverse economy
Empowering First Nations communities
Improved biodiversity and water quality

Project benefits
Potential for reduced nutrient input
Potential increased fish nursery habitat
Potential expansion of endangered
ecological communities
Increased habitat and foraging area for birdlife
Improved water quality and reduced
blackwater events
Rehabilitation of acid sulfate soils
Increased tourism opportunities for the
local area

The Everlasting Swamp near Maclean in northern NSW has been extensively
modified through historic drainage works and tidal restriction infrastructure.
This has caused a significant decline in the environmental values of thearea and resulted in Everlasting Swamp becoming one of the worst acidsulfate soil affected areas in NSW. However, Everlasting Swamp is one of
the highest blue carbon potential sites in NSW, with at least 556 hectares(ha) that could be restored through the re-introduction of tidal flows. This
represents approximately 9% of the total area considered to be of highpotential for blue carbon above a tidal barrier in NSW identified by theFirst Pass Prioritisation Report.
The Marine Estate Management Authority, in partnership with NPWS,First Nations, the Sportsmans Creek Drainage Union and the broader
local community is currently undertaking feasibility assessments at
Everlasting Swamp.
The broader site contains at least 1,289 ha of suitable blue carbon habitat
where tidal flow could be restored. Full restoration of the entire wetlandcomplex would be the largest coastal wetland restoration project in
NSW, and one of the largest in Australia, and could potentially abate
approximately 136,000 tonnes over a 25-year crediting period.

NSW Blue Carbon Strategy 2022–2027

16

Pilot demonstration projects

2.5

Duck Creek– a site for building capacitywith coastal land managers
Point Paddock intertidal zone
at Duck Creek. Patrick Dwyer/DPI

The project could restore at least:

13 haof high blue carbon potential area
State outcomes

Delivery of this project is dependent on registration with the Clean Energy Regulator.

The Marine Estate Management Authority (MEMA),
in partnership with the Department of Regional
NSW and First Nations peoples, is investigating
the feasibility of undertaking a blue carbon projectat Duck Creek Agricultural Research Station.

Connecting communities to resilient andsustainable energy and local environments

Stronger and cohesive regional communities
and economies
Fair, secure and efficient markets
A strong, resilient and diverse economy
Empowering First Nations communities
Improved biodiversity and water quality

Ballina

North Creek

Productive and sustainable land use

Richmond River

Richmond River
Nature Reserve

Mobbs
Bay

Project benefits
Extension activities for landholders,
including primary producers
Potential for reduced nutrient input
Potential increased fish nursery habitat
Increased habitat and foraging area for birdlife
Benefits for First Nations communities

Tidal flows have been precluded from the site by levees for more than
60 years, which led to the loss of approximately 70 hectares of blue carbon
ecosystems. Approximately 13 hectares of the site will initially be restored.
A boardwalk is planned for education purposes allowing stakeholders towitness the progress of blue carbon ecosystem
recovery at the site.
A blue carbon ecosystem restoration project at the site will enable the
NSW Government to show how blue carbon can become part of a business’
enterprise mix. It aims to demonstrates how low-lying properties canbecome more resilient and adapt land-use to accommodate sea level rise.

NSW Blue Carbon Strategy 2022–2027

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Priority area 3:
Embedding blue carbon
in coastal and marine policy
planning and management
The NSW Government will embed blue carbon
approaches into coastal and marine estate
management to encourage and enable blue carbon
ecosystem restoration projects at different scales.

3.1

3.2

3.3

3

Action 3.1: Review the NSW planning system to streamline
approvals and enable blue carbon restoration projects.

Action 3.2: Support councils to integrate blue carbon
projects in coastal management programs and transition land
uses on low lying floodplains vulnerable to extreme eventsand climate change.

Action 3.3: Determine Marine Estate Management Strategy
opportunities that facilitate the uptake of blue carbon projects.

Reviewing the NSW planning system andstreamlining approvals

3.1

Blue carbon projects will likely require a number of regulatory approvals
under planning and other state and Commonwealth legislation. There isan opportunity to streamline and simplify approvals for restoration projects
to assist with reducing upfront costs and increasing investment certainty
and project take-up.
The NSW Government recognises that having certainty about the process
to undertake a blue carbon project can greatly influence a proponent’s
decision to plan for and deliver such a project.
The NSW planning system can be divided into 2 broad areas– land use planning and development controls.
The NSW Government will embed blue carbon ecosystem projects andassociated works into existing planning system provisions, with a viewto streamlining approvals and facilitating project delivery. This will alignthe existing framework around aquatic habitat offsets for development
impacts under the Fisheries Management Act 1994 that generally alsoachieve blue carbon outcomes.

Hare Point Track estuarine wetlands
including saltmarsh and mangroves
Carama Inlet, northern shores ofJervis Bay. Michael Van Ewijk/DPE
NSW Blue Carbon Strategy 2022–2027

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Supporting councils to integrate blue carbon
projects in coastal management programsand transition land use

3.2

The NSW Government has established a modern and integrated coastalmanagement framework through the Coastal Management Act, 2016 that
better equips coastal communities to respond to existing and future
coastal management challenges and opportunities.
Local councils in NSW are currently preparing the first round of coastalmanagement programs under this Act. These programs set the long-term
strategy for the coordinated management of the coastal zone and alsoenable local councils, First Nations peoples and communities to identify
potential blue carbon ecosystem restoration priorities and actions. Landson low lying floodplains that are vulnerable to extreme events and climatechange may be suitable to transition to blue carbon ecosystems.
The NSW Blue Carbon Strategy recognises the opportunity to better
integrate local coastal management with statewide priorities for carbon
sequestration and the protection and enhancement of ecosystems.
Blue carbon ecosystem restoration represents a significant opportunity torealise several objectives of the Coastal Management Act, 2016 which are:Newcastle Coastline
John Spencer/DPE•

protecting and enhancing coastal wetlands in their natural state,including their biological diversity and ecosystem integrity•

promoting the rehabilitation and restoration of degraded coastal
wetlands•

improving the resilience of coastal wetlands to the impacts of climatechange, including opportunities for migration.

The NSW Blue Carbon Strategy informs key pieces of work that will
support local councils’ efforts to integrate the management of blue carbon
ecosystems and low lying floodplains into coastal management programs.

Determining Marine Estate Management
Strategy opportunities

3.3

The Marine Estate Management Strategy integrates with other coastal
and marine programs and reforms in NSW to achieve a more coordinatedapproach to management of the marine estate by all levels of government.
In delivering the NSW Blue Carbon Strategy we will determine
opportunities to facilitate the uptake of blue carbon projects throughcontinued delivery of the Marine Estate Management Strategy.

Mangroves within Emigrant Creek.
Patrick Dwyer/DPI

NSW Blue Carbon Strategy 2022–2027

The NSW Government has committed over $285 million to deliver the
NSW Marine Estate Management Strategy 2018–2028. The strategy
outlines how to protect and enhance our waterways, coastline andestuaries over the next 10 years. It is tackling the most significant threats
to our marine estate, including threats to blue carbon ecosystems suchas poor water quality, modified freshwater flows, climate change, habitat
clearing and wetland drainage.

19

Priority area 4:
Progressing blue carbon research
The NSW Government will support further targeted
research to identify opportunities, including additional
measurement and mapping of the various blue
carbon ecosystems along with ways to recognise
and value co-benefits.

4.1

4.2

4.3

Action 4.1: Undertake a gap analysis, publish a researchprospectus and work with key partners to identify potential
funding pathways to deliver research priorities.

Action 4.2: Understand and improve the valuation of blue
carbon ecosystem services and the benefits of restorationand conservation.

Action 4.3: Explore opportunities for a pilot kelp forest
restoration project in NSW.

Identifying potential funding pathways
for research priorities

4

4.1

Both the nature and extent of blue carbon opportunities in NSW are
yet to be fully realised. Further targeted research is necessary to address
information gaps and provide the evidence base to drive greater investment
in blue carbon.
Leading blue carbon researchers in Australia have considered what the
research agenda for blue carbon needs to be, after surveying the seniorauthors of the 50 most cited papers on blue carbon science.
Several priority research areas identified include:
1. 	How climate change will impact carbon accumulation in mature
blue carbon ecosystems and during their restoration.
2. 	How human driven disturbance to blue carbon ecosystems affects
the burial rate of blue carbon.
3. The importance of macroalgae like kelp, as blue carbon sinks and donors.
4. 	The extent and temporal distribution of blue carbon ecosystems.
5. 	What management actions best maintain and promote
blue carbon sequestration.

Shark Bay coastline, Bundjalung
National Park. Jessica Robertson/DPE
NSW Blue Carbon Strategy 2022–2027

20

Understanding and improving valuation
and benefits

4.2

Research has largely focused on physical and biological processes
and don’t include social and economic research, which needs to beconsidered by the government if a blue carbon market is to be created.
Partnerships with universities and research institutions will be fundamental
to addressing knowledge gaps around blue carbon in the biological, socialand economic realms.
Targeted research projects will provide the evidencebase to make investment
decisions and improve our understanding of the benefits and value of blue
carbon ecosystem services. For example, monitoring and researching thereinstatement of tidal flows within areas of the Clybucca River, Tuckean
Broadwater, Belmore River and Wallamba River will improve our understandingof the benefits and value of restoring approximately 5,150 ha of blue carbon
ecosystems. Similar projects are also underway on the Hunter River at Hexham
Swamp and Tomago.
Scientists surveying
mangrove forests within
the Tweed River estuary.
Patrick Dwyer/DPI

NSW has already begun this work through two projects with the CSIRO:•

estimating Australia’s blue carbon potential•

investigating the carbon sequestration potential associatedwith installing environmentally friendly moorings.

Exploring opportunities to pilot a kelp forest
restoration project

4.3

The potential for seaweeds to contribute to sequestering carbon at large
scales is being investigated. There may be significant opportunities
presented by kelp forest research and restoration to enhance biodiversity,
blue carbon and the contributions to regional NSW economies.
A kelp forest monitoring project is currently being delivered by the
Department of Primary Industries–Fisheries under the Marine EstateManagement Strategy.
The project is monitoring the resilience and condition of these ecosystems
in NSW, in order to detect the impacts of climate change, fill priority
knowledge gaps and predict future climate-induced changes.
Kelp forests have been surveyed across more than 1,000 km of the NSW
coastline using underwater cameras and diving surveys. The project
has established baseline data on the health and condition of kelp
forests, identified areas of refuge where kelp forests are likely to thrivein the future, and predicted how the cover of these kelp forests will
respond under climate change. The outcomes of the research will inform
conservation, management and on-ground works such as restoration.
Conducting surveys of kelp health.
Tom Davis/DPI

NSW Blue Carbon Strategy 2022–2027

Restoration projects typically involve removing the cause of decline toenhance natural recovery and may involve transplanting adult or juvenile
kelp to suitable sites.

21

Priority area 5:
Promoting pathways for blue
carbon investment
The NSW Government will increase investment
in blue carbon markets and natural capital by playing
a leading role in helping the public and private sector
to identify new opportunities for investment inemerging blue carbon markets.

5.1

Action 5.1: Quantify and value ecosystem services and associatedbenefits to drive investment in blue carbon.

5.2

Action 5.2: Engage with stakeholders to investigate blue carbon
financing models and pathways.

5.3

Action 5.3: Pilot the first NSW Government endorsed Blue Carbon
Instrument by 2025 and grow the blue carbon market in NSW.

Natural capital is a way of thinking about nature in much the same way
as traditional capital – if we invest in it, it creates value, and if we degrade it,
we limit its value.

5

By better accounting for any environmental degradation of natural
capital in decision-making, a holistic picture of the social, economic, andenvironmental costs can be obtained, and nature can be properly accounted
for in our decisions.
Blue carbon and the ecosystem services flowing from blue carbon projects
are a form of natural capital. Carbon markets will play an important role inenabling and encouraging participation in blue carbon projects.
This strategy aligns with the NSW Natural Capital Statement of Intent, which
recognises the value of natural capital and creating the environment forevolving natural capital markets and investment opportunities that unlock
alternative on-farm revenue streams for primary industries and landholders.
We are considering a range of financial products to accelerate private
sector financing of natural capital and low carbon farming opportunities
by establishing public-private partnerships with the finance sector.
This strategy supports an integrated approach to offsets across the
Natural Capital and Blue Carbon initiatives to optimise access to natural
capital and carbon market opportunities in NSW.
We will evaluate the financial mechanisms and suitable models for theoperation and management of blue carbon investment. This is so we canlink investment outcomes with natural capital valuation.

Richmond River Estuary.
Patrick Dwyer/DPI

NSW Blue Carbon Strategy 2022–2027

22

Driving investment in blue carbon
In April 2022, the NSW Government launched its approach tosustainably managing natural capital in New South Wales by releasing
a consultation draft NSW Natural Capital Statement of Intent.

5.1

Natural capital is the world’s stocks of natural assets and the services thatflow from them. Our natural capital includes geology, soil, air, water, andall living things, like our coastal wetlands, seagrass beds, kelp forests, andthe life that lives within these places. Our blue carbon ecosystems are aform of natural capital.

Coal Shaft Bay lookout, Broughton
Island, Myall Lakes National Park.
John Spencer/DPE

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM), sponsoredby the Institute of International Finance (IIF) with knowledge support
from McKinsey, estimates carbon credit demand may increase by a factorof 15 or more by 2030 and up to 100 by 2050. By 2030, the global carbon
credit market may be worth upward of $50 billion.
For example, in 2018, the Seychelles Government launched the world’s
first sovereign blue bond to support sustainable marine and fisheries
projects raising $15 million from investors.

Investigating blue carbon financing models
and pathways with stakeholders

5.2

The introduction of the tidal restoration of blue carbon ecosystems
method by the Commonwealth Government, is an important milestone
in providing a market-based pathway for investable blue carbon projects
that sequester carbon. Other activities such as land-use planning to allow
for future migration of blue carbon ecosystems and avoiding disturbanceof mangroves, saltmarsh and seagrass are potentially suitable methods
for incorporation into a future Emissions Reduction Fund method.
Other examples include:

Tomago Wetlands floodgates,
Hunter Wetlands National.
Park/Soil Conservation Services•

land-use planning for sea-level rise, that enables the migrationof blue carbon ecosystems•

re-establishment or creation of new seagrass ecosystems•

avoided clearing and disturbance of mangrove and saltmarsh
ecosystems.

Piloting a Blue Carbon Instrument and kickstarting the NSW blue carbon market

5.3

There is large and growing investment demand for conservation
projects due to their potential value as premium carbon credits
and leveraging important co-benefits.
There is still much to learn about the financial mechanisms and barriers.
Actions will focus on providing a clearer pathway for investment inblue carbon ecosystems, through existing and emerging carbon andenvironmental markets.
The Australian Government has recently approved the first blue carbon
method under the Emissions Reduction Fund that generates Australian
Carbon Credit Units when restoring tidal flows to blue carbon ecosystems.
Khappinghat Creek,mangrove and saltmarsh areas.
John Lugg/DPE

NSW Blue Carbon Strategy 2022–2027

The NSW Government will play a leading role in enabling sustainablefinance for new and emerging markets. This will broaden investment
in blue carbon ecosystem protection and restoration, in addition to projects
currently supported through the Emissions Reduction Fund.
23

Delivering the strategy
The actions identified in this strategy
will be delivered over a 5-year period.

Campground Ben Boyd National Park.
John Spencer/DPE

NSW Blue Carbon Strategy– Overview of priority areas actions
Year 1

2

3

4

5

1.1

Priority 1

Determine effectiveness of blue carbon ecosystem legislative protection, conservation and climate change
adaptation mechanisms.
1.2
Support private and public land covenanting arrangements and other funding options to manage and conserve
blue carbon ecosystems.
1.3 
Investigate opportunities to support seagrass and seaweed ecosystem conservation projects.
1.4 
Promote and support the conservation, adaptation and migration of blue carbon ecosystems by the communityand organisations on public and private land.
2.1 
Explore options that address landholder hesitancy, remove financial barriers and deliver Clean Energy Regulator
registered projects.

Priority 2

2.2 
Identify and progress 10 new sites for blue carbon restoration with potential for registration with the
Clean Energy Regulator.
2.3 
Provide advice, guidance and support to landholders and primary producers to help their decision making.
2.4 Provide support to First Nations peoples and their communities to integrate blue carbon projects into
Sea Country management.
2.5 
Progress blue carbon demonstration projects at Duck Creek Agricultural Research Station, Ballina and theEverlasting Swamp wetland complex.

NSW Blue Carbon Strategy 2022–2027

24

Year 1

2

3

4

5

Priority 3

3.1
Review the NSW planning system to streamline approvals and enable blue carbon restoration projects.
3.2
Support councils to integrate blue carbon projects in coastal management programs and transition land uses on
low lying floodplains vulnerable to extreme events and climate change.
3.3 
Determine Marine Estate Management Strategy opportunities that facilitate the uptake of blue carbon projects.

Priority 4

4.1
Undertake a gap analysis, publish a research prospectus and work with key partners to identify potential
funding pathways to deliver research priorities.
4.2 
Understand and improve the valuation of blue carbon ecosystem services and the benefits of restorationand conservation.
4.3
Explore opportunities for a pilot kelp forest restoration project in NSW.

Priority 5

5.1 
Quantify and value ecosystem services and associated benefits to drive investment in blue carbon.
5.2 
Engage with stakeholders to investigate blue carbon financing models and pathways.
5.3 
Pilot the first NSW Government endorsed Blue Carbon Instrument by 2025 and grow the blue carbon
market in NSW.

NSW Blue Carbon Strategy 2022–2027

25

RAMSAR Wetlands Towra Point is the most significant wetland in
the Sydney region, and important at a National and International level.
John Spencer/DPE

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Cover photograph: Everlasting Swamp National Park.
John Spencer/DPE