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Federal Greens Split Over Carbon-Credit Plan for a New Koala National Park

9/8/2026, 3:29:32 AM

The pending disallowance motion

The Australian Senate will vote next week on a disallowance motion moved by the National Party and One Nation. The motion seeks to overturn a federal carbon-credit method that lets state governments earn credits for protecting native forests on public land. If the motion passes, the New South Wales (NSW) government would lose the ability to generate millions of dollars in credits that underpin its proposal to create a koala national park near Coffs Harbour. NSW Greens MP Sue Higginson—a former lawyer and forest campaigner now serving in the NSW upper house—has urged her federal Greens colleagues not to support the motion, warning that doing so would undermine the park’s prospects.

How the carbon-credit method works and why it matters

Under the “improved native forestry method,” each Australian carbon credit represents one tonne of greenhouse-gas emissions avoided or sequestered. The scheme is controversial because polluting companies can purchase unlimited credits, allowing them to claim emissions reductions while continuing to emit. Peer-reviewed studies have questioned the effectiveness of similar schemes, and scientists argue that direct emissions cuts are essential. Conservation groups such as the Bob Brown Foundation and the Wilderness Society contend that the NSW Labor government first proposed the koala park a decade ago and only later tied it to carbon-credit revenue, arguing the credits would not deliver real reductions and could set a precedent for other states to withhold protection unless compensated.

Positions of the main actors

  • Sue Higginson described carbon credits from public-forest protection as “offensive,” saying the design was later strengthened to force a substantial reduction in logging—something not included in Premier Chris Minns’ original commitment. She emphasized the tangible benefits of the park: protecting 176,000 hectares of forest, safeguarding more than 100 threatened species, creating jobs for First Nations peoples, and sequestering carbon as forests mature.
  • Bob Brown, former Greens leader and Higginson’s mentor, warned that the disallowance would force Minn s to revert to his pre-election stance.
  • The Australia Institute framed the vote as the “first big climate test” for Greens leader Larissa Waters. Independent senators David Pocock and former Green Lidia Thorpe have signaled support for Higginson’s position.

Expected outcomes and broader implications

If the disallowance succeeds, the NSW government may lose the financial incentive that underpins the koala park, jeopardizing protection for a large swath of forest and the species that depend on it. Conversely, maintaining the method could preserve a funding stream but continues debate over the legitimacy of offsets in meeting Australia’s climate targets. The dispute highlights a broader tension within the Greens between pragmatic funding mechanisms and a principled stance against market-based emissions reductions.