NAB makes largest-ever carbon credit purchase in five-year Indigenous savanna burning deal
National Australia Bank (NAB) has executed its largest single purchase of Australian Carbon Credit Units (ACCUs), signing a five-year agreement with First Nations-owned carbon farming business Arnhem Land Fire Abatement NT (ALFA NT). The bank confirmed the transaction in an announcement describing it as its largest single ACCU purchase and a major transaction with the First Nations-owned carbon farming business.
The agreement gives NAB access to approximately 150,000 high-quality ACCUs through to 2031, reducing its reliance on annual spot market purchases, and represents a long-term commercial commitment to First Nations-led land management across Arnhem Land fire projects. The deal was executed on Wednesday and is significant both for its scale within the Australian compliance-linked market and for directing long-term demand towards Indigenous-generated credits.
ALFA NT uses revenue from Indigenous savanna burning ACCUs to operate six fire management projects across Arnhem Land led by Traditional Owners and rangers, combining customary knowledge with modern tools. The savanna burning method involves planned, low-intensity burning early in the dry season, preventing unplanned, high-emissions wildfires later in the season that damage biodiversity. ALFA NT’s chief commercial officer Adrian Enright said every dollar from ACCU sales is reinvested into land and cultural management, employing more than 300 Indigenous rangers, as well as training and community priorities.
The timing reflects structural changes in Australia’s carbon market. The transaction follows federal government reforms to the Safeguard Mechanism in 2023 and the introduction of new savanna fire methodologies in April 2026, with NAB noting that Australia’s carbon market has evolved in recent years through increased spot liquidity and the development of more active forward and options markets. NAB executive Krista Baetens indicated that securing a multi-year supply of premium ACCUs would strengthen the bank’s management of its carbon exposure over time and support projects delivering environmental, cultural and economic benefits.
Demand for ACCUs has been rising as facilities covered by the Safeguard Mechanism face declining emissions baselines, and long-dated offtakes from Indigenous-owned suppliers remain relatively rare. The transaction is likely to be watched as a template for other financial institutions seeking both supply certainty and credits with strong co-benefit credentials.
