Abstract: The Carbon Farming Initiative is a carbon offsets scheme being established by the Australian Government to provide new economic opportunities for farmers, forest growers and Indigenous landholders while also helping the environment by reducing carbon pollution. The Government consulted broadly on design options for the Carbon Farming Initiative from October 2010 to February 2011. The legislation for the Carbon Farming Bill was introduced to Parliament on 24 March 2011. Acknowledging the complexity of some issues under the CFI, the Government has committed to conduct further stakeholder consultation on targeted issues such as additionality and Indigenous land issues. The Department has now released a consultation paper which covers how Indigenous landholders can participate in the Carbon Farming Initiative and outlines outstanding issues in relation to Aboriginal and Torres Strait Islander land. This consultation paper provides an opportunity for stakeholders to comment on the approach to native title and land rights issues.