Australian Carbon Credit Unit (ACCU) Scheme Method Development

AARES Conference 2024

Brett Kerr

Director

Land, Forest and Blue Carbon Methods

Department of Climate Change, Energy, the Environment and Water

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past and present.

ACCU Scheme �overview

Voluntary, provides incentives to reduce emissions

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Participants earn ACCUs for emissions stored or avoided. 

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ACCUs can be sold either to private buyers or to the Australian Government.​

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1 ACCU = 1 tonne of CO₂ equivalent emissions avoided or stored

QLD

453 projects

NSW

516 projects

VIC

177 projects

TAS

77 projects

SA

179 projects

WA

274 projects

NT

43 projects

National

14 projects

Multi-state

25 projects

Cumulative project across Australia - early Feb 2024*

TOTAL

1,782 projects

*Source: Interactive Map | Emissions Reduction Fund | Clean Energy Regulator

ACCU Review outcomes �

Government accepted in principle all 16 recommendations

• Review concluded ACCU Scheme is sound
• Made 16 recommendations centred around:
• Improving governance and integrity 
• Maximising transparency 
• Innovation in method development and project implementation 
• Greater participation and benefits for rural and remote communities, particularly First Nations people 

Review ran for 6 months

• Received 200+ written submissions
• Range of stakeholder meetings and site visits

Commissioned to consider

• Integrity of ACCUs
• Governance arrangements for the ACCU Scheme
• Impacts on regional communities including First Nations Australians

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ACCUs Implementation Plan 2023� �

Interim governance arrangements

Publication of carbon estimation areas�(CEAs)

The Government is committed to implementing the recommendations as quickly as possible.

Already implemented

Now considering policy positions on:

• Interim governance arrangements
• Publication of carbon estimation areas�(CEAs)
• Revocation of the avoided deforestation �method
• Climate Active

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• New ACCU Scheme Principles (Rec 6)
• Maximising transparency (Rec 4, 5.4 and 8.3)
• Government purchasing of ACCUs (Rec 3.3)
• Proponent-led method development (Rec 5) 
• Integrity Committee functions (Rec 2) 
• Native Title consent processes (Rec 11)
• Additional CFI Act changes flowing from previous Climate Change Authority reviews

Proponent-led method development process

Proponent-led method development process

Recommendation 5. Establish a transparent proponent-led process for developing and modifying methods as soon as practicable, with the Carbon Abatement Integrity Committee assuring the integrity of methods and the Department providing support for participants who otherwise may not be able to participate

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• Work with stakeholders to design a new proponent-led method development process.
• Process should be innovative and allow for scaling up of activities.
• Design an efficient and robust process, with clear steps and procedures
• Define roles and responsibilities for the Minister, the Integrity Committee, the department and the CER at each stage in the process

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Proponent-led method development

• New expression of interest and triage process – criteria, role of the Integrity Committee
• Developing a method – role of the department, role of the method developer
• Public consultation process  –role of department, role of Integrity Committee, responsibilities of method developer
• Reviewing and maintaining methods – when and how to review and maintain methods? Role of Integrity Committee?
• Transitioning between old and new methods
• Functions and responsibilities of the Integrity Committee

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Legislated Offsets Integrity Standards

1. Additionality: A method should result in carbon abatement that is unlikely to occur in the ordinary course of events (disregarding the effect of the Act).
2. Measurable and verifiable: A method involving the removal, reduction or emissions of greenhouse gases should be measurable and capable of being verified.
3. Eligible carbon abatement: A method should provide abatement that is able to be used to meet Australia’s international mitigation obligations.
4. Evidence-based: A method should be supported by clear and convincing evidence.
5. Project emissions: Material greenhouse gas emissions emitted as a direct result of the project should be deducted.
6. Conservative: Where a method involves an estimate, projection or assumption, it should be conservative.

Native Title consent

Native Title consent

Recommendation 11. The CFI Act should be amended to remove the option to conditionally register ACCU projects on Native Title lands (as defined in the CFI Act) prior to obtaining consent, in alignment with the principles of Free, Prior and Informed Consent (FPIC)

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11.1 The Australian Government should support Native Title Representative Bodies and other relevant bodies to ensure consistent standards in the application of FPIC.

• Should there be allowance for preliminary form of EIH consent? If yes, what form? 
• Preliminary agreement withdrawal and what guidance or processes could be provided? Is a dispute resolution mechanism needed? 
• How should eligible interest in land be defined to respect First Nations interests? Are there other ways of recognising interests that fall short of a Native Title determination through benefit sharing arrangements, and how might this work? 
• What support and resources do First Nations EIHs, project proponents and communities need when considering or providing consent? 

Eligible Interest Holder (EIH) consent

• Currently ‘area based’ projects can be conditionally registered without EIH consent
• Early engagement with First Nations people before projects are established is integral, in alignment with the principles of Free, prior and informed consent (FPIC)
• Proposed approach – align with Nature Repair Act 2023
• Written unconditional or conditional agreement from Native Title registered body.
• Projects could not commence until initial written agreement provided.
• Further work is underway to consider other options.

Contact us

ACCU Engagement and Implementation team�ACCUScheme@dcceew.gov.au

ACCU methods�ACCUmethods@dcceew.gov.au

or

Maximising transparency

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Maximising ACCU Scheme transparency

Recommendation 4. legislation should maximise transparency, data access and data sharing, while enabling privacy protection, to support greater public trust and confidence in scheme arrangements. 

4.1 The default should be that data be made public, including carbon estimation areas (CEAs)

Recommendation 5.4. The Minister and the Integrity Committee must publish reasons for recommendations and decisions.

Recommendation 8.3. The Clean Energy Regulator should include nominated suppression mechanism(s) and eligible HIR activities for new and existing projects on the project register, as soon as feasible, and routinely publish project assessment data and results.

Proposed transparency requirements�

Method development process

• Integrity Committee publishes decisions on method proposals

Project information

• Potential additional info – location of all projects, project details, crediting period dates, type of estimation used, service providers and enforceable undertakings

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Method specific information (possible examples)

• for sequestration projects, such as estimated forest cover assessment dates and the permanence plan
• for soil carbon projects, the land management plan.

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