Southern Rural Water Carbon Reforestation Offset Project

The Southern Rural Water Carbon Reforestation Offset Project is a dispersed environmental planting project located across multiple water storage sites managed by Southern Rural Water (SRW) in southern Victoria. Registered in August 2024, the project covers a total area of approximately 489 hectares. The planting sites are situated at key reservoirs, specifically Merrimu Reservoir near Bacchus Marsh (west of Melbourne), and Lake Glenmaggie and Blue Rock Lake in the Gippsland region. This initiative is a core component of SRW's strategy to achieve and maintain net-zero emissions, particularly to offset Scope 1 emissions from its vehicle fleet while transitioning to electric vehicles.

The project operates under the Reforestation by Environmental or Mallee Plantings (FullCAM) methodology. This involves establishing permanent plantings of mixed native tree and shrub species on land previously used for agriculture or grazing. The methodology requires stocking densities sufficient to achieve forest cover (typically over 200 stems per hectare), using the FullCAM model to estimate carbon sequestration over a 25-year crediting period. SRW has engaged The Carbon Farming Foundation to assist with the project's design and compliance, utilizing a model that allows the corporation to retain 100% of the generated Australian Carbon Credit Units (ACCUs).

Given the dispersed nature of the project, the environmental conditions vary significantly between sites. The Merrimu Reservoir site, located in a rain shadow west of Melbourne, typically experiences lower rainfall (approximately 500-600mm) and sits on volcanic plains with silt and clay soils. In contrast, the Gippsland sites (Lake Glenmaggie and Blue Rock Lake) are situated in the foothills of the Great Dividing Range, enjoying higher rainfall (700-900mm+) and generally fertile loam or clay soils. This climatic variance requires tailored planting mixes for each location to ensure survival and optimal growth.

Planting activities are staggered, with works at Lake Glenmaggie (approx. 15ha) commencing in 2025, followed by Merrimu Reservoir (approx. 67ha) in 2026, and Blue Rock Lake in 2027 following community consultation. Beyond carbon sequestration, the project aims to improve water quality by reducing erosion and nutrient runoff into the reservoirs, while also creating habitat corridors for local wildlife.