WWF-Australia’s Koala Friendly Carbon Initiative (KFCI) is a visionary program that is helping to heal Country, restore habitat and tackle climate change.

Bringing together landholders, scientists, First Nations communities and businesses, KFCI is restoring vital habitat for endangered koalas on Australia’s eastern coast while generating high-integrity carbon credits. It is a practical demonstration of a Regenerative Economy, where nature, climate and people thrive together.

Over the past 12 months, more than 75,000 koala habitat and food trees have been planted across eastern Australia. The first sale of carbon credits occurred in 2025, with the proceeds to be reinvested in future plantings.

As a pioneering model for nature-based solutions, KFCI demonstrates how market mechanisms can be harnessed to deliver measurable outcomes for threatened species, climate mitigation and rural livelihoods.

Central to this work is respect for First Nations Knowledge and connection to Country. WWF partners with Indigenous communities and contractors. This is nature-positive climate action at its best, because protecting koalas means protecting Country, culture and the ecosystems we all depend on.

The Koala Friendly Carbon Initiative is a collaboration between WWF-Australia and Climate Friendly, proudly supported by the NSW Government and HP Inc.

Swan Bay, New South Wales, Australia. Sophie Hueppauff from WWF-Australia is getting ready to plant new native trees on Lyn Thomson and Steve Posselt's grass land in Swan Bay. These young trees will then become a viable habitat for many wildlife species, including koalas.
Planting native trees in Swan Bay, NSW, Australia. © WWF-Australia / Franck Gazzola
Swan Bay, New South Wales, Australia. Team effort is required to plant new trees on Lyn Thomson and Steve Posselt’s property in Swan Bay. Planting and mulching are the two main steps to complete. These young trees will eventually create a forest that will then become a viable habitat for many wildlife species, including koalas.
The team planting new trees on Lyn Thomson and Steve Posselt’s property in Swan Bay, NSW, Australia. © WWF-Australia / Franck Gazzola