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In short:
Woodside has bought four sheep and cattle farms in NSW for $40 million to help offset emissions from oil and gas projects.
Agents say "it's like a gold rush" as more than a dozen companies look for properties to establish carbon offset projects
What's Next?
Farmers and foresters are worried about the impact on small rural communities.
The $40 million acquisition of four large sheep and cattle properties in NSW by an oil gas giant has put the spotlight on the rapid growth of carbon farming.
WA-based company Woodside has already spent $23 million on three farms covering more than 4,300 hectares on the Monaro, in southern NSW.
The ABC understands Woodside is set to acquire a fourth property called 'Wallendibby' on 4,000 hectares on the NSW Victorian border for between $16-18 million.
Woodside did not respond to specific questions about the sale.
But a spokesperson said the properties would be used to plant native trees and shrubs for certified carbon credits to offset their emissions.
Rob De Fegely, a farmer and forester and General Manager of the South East NSW Forestry Hub, said he opposed the sale.
He said it could see active farm land taken out of production, which could provide a haven for pests and weeds.
"We don't want companies coming in that have no experience in forestry, no experience in farming, that just have deep pockets," he said.
John Jefferys, a mixed-farmer from Delegate, said he was worried that families would move away as the properties were converted from farming to native vegetation.
"That has flow-on effects to small schools, people going to the shops, buying milk and those sorts of things, so that's a real concern," he said.
'Like a gold rush'
Livestock and property agent Nick Kirshner, who has sold properties for carbon farming, said Woodside was not the only company looking at properties to start carbon offsets on the Monaro.
"Woodside is one the biggest players but they're not alone," he said.
"There are about a dozen interested parties.
"Some are the big polluters looking for offsets for themselves, some are super funds, some are ex-stockbrokers or people in the banking industry. It's a very wide range of people.
"It feels like a bit of a gold rush."
However, despite all the talk of money, he warned the talk about premium prices had been over hyped.
"When you look at the Woodside sale it only comes back to $2,180 an acre, and we've sold grazing properties in the past for more," Mr Kirshner said.
Some farmers say the flood of money into farmland for carbon offsets is reminiscent of the failed Managed Investment Schemes (MIS).
"We all remember the outcomes of the managed investment schemes and the poor social outcomes that they delivered, and we definitely don't want to see that repeated," Mr De Fegely said.
Shareholders driving corporate interest
Woodside made $1.7 billion net profit after tax last financial year, primarily through its oil and gas projects.
Earlier this year, shareholders rejected Woodside's climate plan, arguing the company was not moving fast enough.
Polly Hemming, Director of the Climate & Energy Program at The Australia Institute said it was not a surprise that the WA company was looking for offsets in other states.
"It shows that, as Woodside's planned gas expansion is occurring, Woodside needs more offsets to notionally offset its increasing emissions," she said.
"However, what we need is a reduction in absolute emissions, not, 'We are going to emit more and simply offset more.'"
In a statement, a company spokeswomen said:
"Woodside utilises certified carbon credits to offset equity Scope 1 and 2 emissions that are above our targets in a given year after design out and operate out measures have been taken."
Woodside's carbon business is largely based in WA, where the company's Native Reforestation Project aims to restore and revegetate land.
About 10,000 hectares of native trees and shrubs have been planted under that project so far.
Ms Hemming said there was value in increasing soil carbon stocks but prime agricultural land should not be used to offset oil and gas emissions.
"Fossil fuel companies are using carbon offsets to increase their production," Ms Hemming said.
"I would be asking the question as to why the ag sector has to be doing the heavy lifting for industries that ultimately Australia doesn't need."
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