Otway Silva 2027_1 Carbon Project

Otway Silva 2027_1 Carbon Project is a plantation forestry project located across multiple sites in Victoria, including areas near Macarthur in the state's south-west and near Yea, approximately 110km north-east of Melbourne. It was registered in August 2026 and covers 331.69 hectares.

Plantation forestry projects generate carbon credits by establishing new plantation forests or by converting existing short-rotation plantations into long-rotation forests. Standard methodology requirements include planting at a sufficient stocking density to achieve lasting forest cover and managing the land specifically for the commercial harvesting of wood products.

The regions surrounding Macarthur and Yea are highly productive agricultural zones known for dairy farming, cattle grazing, and extensive commercial forestry. These areas generally experience moderate to high rainfall, and feature fertile soils including volcanic basalts, clay loams, and sandy loams well-suited for commercial timber production.

This project sequesters carbon by establishing a new commercial plantation forest and converting an existing short-rotation plantation forest to a long-rotation cycle. The project proponent, Otway Silva Pty Ltd, is backed by MEAG (the asset management arm of German insurance giant Munich Re), which recently invested hundreds of millions of dollars into acquiring and developing new Victorian hardwood plantations. The project is managed in partnership with Midway Plantations Pty Ltd, one of Australia's largest forestry and wood fibre export companies.