The Coalition will ban big business from buying land for carbon offset schemes so they can meet their net zero emissions target.
Carbon abatement projects – such as tree-planting – will be limited to one-third of a farm’s area under the scheme.
The move is part of Prime Minister Scott Morrison’s bid to get rural Liberals and the Nationals on board with his 2050 climate target.
It follows rising concerns about the impact of carbon projects in the regions, which are being blamed for population losses and a growth in weeds and feral animals.
Agriculture Minister David Littleproud says he is in the middle of finalising a solution with Energy Minister Angus Taylor.
Australia’s largest independent oil and gas company, Woodside Petroleum, has purchased more than 10,000 hectares of land in the past two years to plant trees to partially offset its production emissions.