Regeneration carbon farming projects involve managing land in a way that enables native vegetation to regenerate naturally into forest. This is done by changing, reducing or removing factors that would otherwise suppress regeneration (e.g. grazing pressure, feral animals and non-native plants and clearing or thinning practices).

The regenerating forest captures and stores carbon in the landscape, producing carbon credits which can be traded. Over time, the project implementation area will transition to ‘forest cover’. In Australia, forest cover means an area of land that has trees two or more metres tall and a canopy that covers at least 20% of the total area. Forest cover should be achieved within 15 years of when the trees germinated.

A regeneration project is implemented on land in Australia for either 25 or 100 years. Projects can only take place on land areas that did not have forest cover for the ten years before the project commences (known as the baseline period). The regeneration project involves natural germination of trees, rather than seeding or planting activities, which are covered under different project methods.