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A project to rebuild koala habitats on the New South Wales north coast is beginning to show signs of success. The first koala has been spotted on land that's been converted from farming to forest.

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00:02It's been billed as a resort for koalas.
00:05Now this newly planted forest has its first VIP guest.
00:09If you provide the right habitat and the right species, the koalas will come.
00:14We know they're in this area.
00:16More than 60,000 trees on this farm near Lismore are the result of a pilot project
00:20known as the Koala-Friendly Carbon Initiative.
00:23It provides a three-fold incentive for landholders.
00:27They can earn an income from the carbon credits.
00:29They can sequester carbon to reduce climate change
00:33and they can also help us save koalas by restoring their habitat.
00:37Farmers can make millions of dollars in revenue by selling carbon credits.
00:41Here at Banyula, KPMG has purchased 25 hectares worth.
00:46It's quite difficult for an organisation to get involved in environmental stewardship
00:51and this gives them an opportunity to do that.
00:53This particular area of the north coast is a real hot spot for koalas
00:58so we've focused our first five plantings here.
01:01It's not just about saving koalas.
01:03It's hoped forests like this one will help with regeneration,
01:06bringing the land back to its natural state.
01:09You start to see water rush across the land and it's clear, not muddy.
01:13Seeing the first koala, you know, it starts to tell you that you're doing something right.
01:18The World Wildlife Fund is now planning more plantings across New South Wales.
01:23We're trying to expand into other regions where we know that this koala is still existing.
01:27The World Wildlife Fund is now planning and where we know that the world is still existing.
01:28The World Wildlife Fund is ever going to be involved in building.
01:28You
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