Forest Products Industry

Nippon Paper Resources Australia, a wholly owned subsidiary of Nippon Paper Industries has launched a softwood tree plantation project and a carbon credit generation project in the Green Triangle region of Western Victoria, Australia. Source: Timberbiz Since 1996, NPR has been operating a hardwood tree plantation business in Australia with the aim of securing raw materials of pulp for NPI. As its existing hardwood plantations are now reaching maturity in stages, the company has decided to switch to softwood species for reforestation. Nippon says that this policy aims not only to secure softwood raw materials for NPI but also to supply timber for residential construction, for which demand is expected to grow in Australia. Furthermore, the switch to softwood will enable the generation of new carbon credits. Starting in 2026, Nippon says it will gradually convert existing hardwood tree plantations into softwood. By 2028, as part of Phase 1 of the project, we will establish approximately 1,500 hectares of softwood plantations and generate carbon credits from these areas. Furthermore, leveraging the knowledge and expertise gained during Phase 1, the company will explore expanding to a total of 10,000 hectares as part of Phase 2 of the project. Australia’s carbon credit system, established under the Carbon Credits Act 2011 (Carbon Farming Initiative), is administered by the federal government’s Clean Energy Regulator (CER) and is regarded globally for its transparency and reliability. Under this system, a framework for the generation and trading of carbon credits, known as ACCUs (Australian Carbon Credit Units), within Australia has been established. NPR has already obtained approval from the CER in 2026 for the registration of its carbon credit generation project, and the generation and acquisition of carbon credits will begin in 2027 and beyond. Furthermore, as demand for paper used in packaging and packaging materials continues to grow, and global demand for softwood woodchips, the primary raw material for these paper products, is also expected to increase, the company acquired a New Zealand-based softwood woodchip production and export company in February 2026. In addition, by launching a softwood plantation business in Australia, NPR aims to secure a stable supply of resources and maximize the Nippon Paper Group’s revenue from timber-related businesses. Through this softwood plantation project in Australia, the company aims to expand the Nippon Paper Group’s forestry and timber-related businesses and contribute to solving societal challenges.

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