Tiwi Plantation Carbon Project Two

Tiwi Plantation Carbon Project Two is a plantation forestry project located on Melville Island (part of the Tiwi Islands), approximately 80km north of Darwin in the Northern Territory. It was registered in August 2025 and initially covers 2,859.54 ha, with variations adding more area over the life of the project.

Plantation forestry projects involve establishing a new plantation forest, converting a short-rotation plantation to a long-rotation one, or maintaining a pre-existing plantation. Under the methodology, projects must plant eligible commercial tree species at a density that will achieve standard forest cover (typically at least 20% crown cover and 2 metres in height) while accommodating commercial harvesting cycles to store carbon in long-term tree biomass.

The Melville Island region is heavily defined by Indigenous protected areas, traditional land use, and commercial forestry operations. The area experiences a tropical monsoonal climate with very high rainfall during the wet season. The soils are predominantly sandy, highly weathered, and naturally nutrient-poor, heavily featuring types such as red kandosols and tenosols.

This project sequesters carbon by establishing and maintaining a new plantation forest for the commercial harvesting of wood products. Managed by Tiwi Plantations Pty Ltd, a wholly Indigenous-owned entity, in partnership with Plantation Management Partners Pty Ltd, the project primarily utilizes species like Acacia mangium and is exploring new Eucalyptus varieties to ensure better long-term environmental integration. The project is part of a broader, massive $81 million integrated strategy backed by the Clean Energy Finance Corporation and River Capital to expand commercial forestry and carbon abatement across the Tiwi Islands while strongly supporting local Indigenous employment.