"The forest industry sees this legislation as a positive step which will encourage the growth of carbon sink forests, greatly increasing the viability of the Carbon Pollution Reduction Scheme (CPRS), recently outlined by the Government,” NAFI CEO Allan Hansard said.

“This legislation will ensure investment in carbon sink forests complies with applicable laws while also ensuring the land used for carbon sink purposes will be fully and appropriately integrated with other land uses such as agriculture.

“It’s important to remember that it’s not just the forestry industry, but also farmers and other private land holders, that will benefit from this legislation.

“The expansion of plantation forests is a key part of Australia meeting its carbon abatement responsibilities.

"Any legislation that encourages the growth of plantation forests is to be applauded.

“NAFI is pleased the Senate Rural and Regional Affairs and Transport Committee is looking into this issue so thoroughly.

"I hope that once the Committee has received evidence of the widespread benefits to the community of this legislation, it will opt to implement it as soon as possible,” Mr Hansard said.