Carbon Reforestation Offsets

Southern Rural Water is proud to be the lifeblood of the agricultural economy of southern Victoria.  We service an area of 88,000 square kilometres, stretching from the South Australian to the New South Wales border and from the Great Dividing Range to the Victorian coastline. 

We operate seven major dams, eight diversion weirs, three irrigation districts and manage take and use licences for waterways, licences relating to catchment dams and farm dam registration.  

With assets valued at $2.1 billion, our irrigation districts deliver water from catchment to farm gate. As regulators of surface and groundwater, we provide fair, equitable and sustainable access to water resources. Our services support farmers to generate high quality, fresh and local produce, much of which ends up on tables across the globe ready to be enjoyed by consumers. 

We supply water to irrigators, power generators, urban water corporations and we work with the Victorian Environmental Water Holder alongside Catchment Management Authorities and Melbourne Water to manage the release of environmental flows. 

Southern Rural Water is one of 17 water corporations in Victoria. The Victorian Government has committed the water sector to achieving net zero greenhouse gas emissions and Southern Rural Water is on track to reach net zero emissions earlier – by 2025.  

Carbon reforestation offsets involve planting trees to capture carbon dioxide from the atmosphere and contribute to reducing the effects of climate change. To reach our net zero target, Southern Rural Water has committed to carbon reforestation offsets, which helps reduces emissions. 

The carbon reforestation offsets project could remove up to 36,000 tonnes of carbon dioxide from the atmosphere over 25 years, which will generate carbon credits to support Southern Rural Water’s emission reduction plans. 

We are already reducing our greenhouse gas emissions through the transition of vehicle fleet towards low and no emissions vehicles, partnering with Wannon Water to trade 3,000 Australian Carbon Credit Units, installing solar panels and purchasing green energy. Solar panel installation at our Blue Rock Lake office has resulted in a reduction of emissions by between 12 to 27 tonnes of carbon dioxide annually. 

Southern Rural Water has assessed land holdings across southern Victoria, including sites at Blue Rock Lake, Lake Glenmaggie and Lake Merrimu to see if there are suitable locations to undertake carbon reforestation offsets that could help us achieve our net-zero greenhouse gas emissions target.

In total, Southern Rural Water assessed 376 hectares of its land holdings, including approximately 200 hectares at Blue Rock Lake. All sites were chosen for their large, unvegetated landholdings with high carbon yield potential. 

Southern Rural Water engaged an expert consultant to assesses the sites’ suitability. The robust assessments included bushfire risk assessments, cultural heritage assessments and ecological vegetation assessments.  The consultants identified several suitable sites. Southern Rural Water has reviewed these sites and further narrowed its current reforestation offset planting proposal to a small number of locations.

From the 200 hectares that were assessed, Southern Rural Water is proposing to plant on 75 hectares of land at Blue Rock Lake.  

The proposed planting sites include: 

• 44 hectares on the eastern side of the lake 
• 19 hectares at the northern end of Blue Rock Lake 
• 12 hectares along the bank of the lake, known as riparian edges. 

Southern Rural Water has identified these parcels of land, taking into careful consideration the bushfire, cultural heritage and ecological vegetation assessments. Importantly, Southern Rural Water has ensured that the location of these plantings is away from the Willow Grove township.  

Planting involves a mixture of native, local tree, shrub and understorey species to establish new and permanent forest cover.  

We will be planting species that reflect the local Victorian Ecological Vegetation Class, with a higher tolerance for drier and more variable climatic conditions. This is to ensure greater success in establishing and maintaining resilient reforested areas at our sites.  

Planting along the lake edge will improve water quality, which is important as Blue Rock Lake supplies Gippsland Water’s drinking water, which supplies towns including Willow Grove. 

Planting along the lake edge also reduces bank erosion caused by wave action from boats. Blue Rock Lake is an important recreation space for our communities and is used for a range of activities including fishing and swimming.  

By planting species that are native to the local area, the project will also create habitat and corridors for a wide range of flora and fauna and connect areas of existing vegetation across the landscape.  

Here is an indicative schedule of proposed next steps. The earliest any plantings would take place is mid-2026.  

Our consultant produced a bushfire risk analysis that made recommendations on the suitability of sites for planting and mitigations to be implemented for our carbon reforestation offsets.  

This also included identification of the bushfire landscape risk and likely radiant heat impacts. The analysis included a site visit, assessment of available information including municipal fire management plans, bushfire planning overlays, and legislation.

The analysis considered topography and its influences on bushfire behaviour, including under conditions such as prevailing winds. 

The Bushfire Risk Assessment can be read here.

No. A Bushfire Management Overlay is a Victorian Government planning instrument that applies to land that may be at risk of bushfire to include specific bushfire protective measures.

The proposal has bushfire buffer zones, which reduces the potential for a Bushfire Management Overlay to be applied in the future. 

From the Willow Grove township, there will be minimal changes to the visual landscape.  

From areas north and south of the township where the proposed planting areas are along the lake’s edges, the outlook would be similar to the existing planting along the walking track that follows the lake shore in front of Willow Grove. 

Below is an artists’ impression of what the sites might look like in 5, 10 and 30 years’ time. They are included here as a guide.

After 5 years 

After 10 years 

After 30 years 

The proposal includes the careful management of the land, including site preparations ahead of seed plantings.  

Under the proposal, once the seeds are planted, the land will be carefully managed. The maintenance and monitoring activities will include weed and pest control, fencing, watering and monitoring the planting area.

Southern Rural Water will maintain and preserve the carbon stored in the trees until 2050 to align with Australian Government requirements. 

The final summary report for the Carbon Reforestation Offsets Project can be viewed here.

This report considered the suitability of offsets sites at Blue Rock Lake, Lake Glenmaggie and Lake Merrimu, and any bushfire risks, cultural heritage and other matters.