NAB backs First Nations projects in major carbon credit deal

01 July 2026
First Nations Affairs  Climate and Sustainability  Corporate and Institutional Banking

• NAB has executed a major carbon procurement transaction with a First Nations-owned, not-for-profit organisation.
• The bank has sourced around 150,000 high-quality indigenous savanna burning ACCUs.
• The deal reduced NAB’s reliance on the annual spot market, provides coverage for a significant portion of NAB’s residual operational emissions for the next five years and supports projects in Arnhem Land. 

NAB has executed its largest single purchase of Australian Carbon Credit Units (ACCUs) in a major transaction with a First Nations-owned carbon farming business, Arnhem Land Fire Abatement NT (ALFA NT).

The transaction gives NAB access to approximately 150,000 high-quality ACCUs to offset emissions from 2026-2031, reducing the bank’s reliance on annual spot market purchases.

NAB Executive Markets, Krista Baetens said this transaction has been designed to be mutually beneficial for both NAB and ALFA NT. 

“NAB’s Carbon and Commodities Markets teams structured and executed this agreement, giving NAB reliable, long-term access to high-quality Australian carbon credits,” Ms Baetens said.

“The partnership with ALFA NT enables us to work with a First Nations-owned organisation delivering projects that combine cultural knowledge, land management, emissions reduction and economic empowerment.” 

Strengthening NAB’s supply of premium ACCUs will improve how the bank manages carbon exposure over time. 

Ms Baetens said the deal follows Federal Government reforms to the Safeguard Mechanism in 2023 and the introduction of new savanna fire methodologies in April 2026.

“Australia’s carbon market has continued to evolve in recent years, with increased spot liquidity and the development of more active forward and options markets,” Ms Baetens said.

ALFA NT uses revenue from indigenous savanna burning ACCUs to operate six Arnhem Land fire management projects led by Traditional Owners and rangers, combining customary knowledge with modern tools.

Indigenous savanna burning ACCUs involve planned, low-intensity burning early in the dry season, preventing unplanned high-emissions wildfires later in the season that negatively impact biodiversity and environmental conditions. 

ALFA NT Chief Commercial Officer Adrian Enright said the partnership with NAB is critical to providing long-term certainty for the organisation’s activities.

“Every dollar from the sale of ACCUs is reinvested into land and cultural management, employing over 300 Indigenous Rangers, training and community priorities,” Mr Enright said.

“As Australia’s carbon market continues to mature, organisations are increasingly seeking long-term partnerships that deliver certainty, integrity and enduring impact.

“Together with NAB, we’ve created a partnership that provides long-term supply certainty through one of Australia’s most trusted sources of high-integrity carbon credits, while creating enduring environmental, cultural and economic outcomes across Arnhem Land.”

The transaction contributes to demand for Indigenous-generated carbon credits and supports continued investment in projects led by Traditional Owners.