This research paper evaluates carbon-neutral wool farming in south-eastern Australia, focusing on methods to mitigate greenhouse gas emissions through storing carbon. Researchers utilised the GrassGro and FullCAM models to assess pasture health and carbon sequestration capacity in trees and soil. Findings reveal that effective tree planting not only sequesters CO2 but also improves pasture production by combating salinity and land degradation, providing co-benefits that enhance the overall productivity of farms. With proper management, carbon sequestration could offset entire emissions from livestock, encouraging sustainable agricultural practices. Combined with government incentives, these practices demonstrate a viable pathway towards sustainability in the wool industry.