State Environment Minister James Griffin announced on Tuesday the NSW Biodiversity Conservation Trust has signed a partnership with Telstra.

Telstra will be able to offset greenhouse gas emissions through the agreement, which will create a new income stream for landholders and support natural habitats.

Head of Telstra Energy Ben Burge said as the country's largest telecommunications network, it was essential to explore every way to tackle the climate challenge.

"For a business of Telstra's scale, continuing our commitment to be carbon neutral in our operations equates to finding roughly two million tonnes worth of offset projects a year," he said.

"This is no small task."

The minister said he expects more deals between landholders, the private sector and philanthropists to conserve land, as demand increases from shareholders for environmentally responsible investments.

He said the program is a low-risk, high-impact way for companies to partner with government, and importantly with landholders who own and manage 70 per cent of land in NSW.

A biodiversity and carbon conservation tender, launching later in 2022, will protect and restore threatened woodlands in the Murray-Riverina region.

Australian Associated Press