The Climate Change Authority is undertaking its fourth review of the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act) which enables the Australian Carbon Credit Unit (ACCU) Scheme.
The authority is taking a broad look at the policy and its operation in the 2023 context: the Safeguard Mechanism will drive increasing private demand for ACCUs; Australia now has a net zero target and a strong 2030 target; international and voluntary carbon markets are evolving; and the Paris Agreement is well underway.
The scheme has just been reviewed through the 2022 Independent Review of Australian Carbon Credit Units chaired by Professor Ian Chubb (the Chubb Review). The authority will build on this review, noting the government is still implementing many of the recommendations.
The authority’s review of the ACCU scheme is required by law to be delivered by the end of 2023, as is the authority’s review of the National Greenhouse and Energy Reporting Act.
The authority has focussed on the following key issues for its review:
- Securing integrity – integrity is more important than ever as Australia transitions to net zero. The authority is considering key offsets standards including additionality, permanence and leakage.
- Valuing non-carbon outcomes – how the scheme can achieve other positive outcomes, including co-financing of technology deployment, boosting environmental benefits, and benefits for First Nations, rural, regional and remote communities.
- Managing supply and demand – what an increase in ACCU demand means for land managers and how to support participation in the scheme.
- Scaling emissions removals – how the scheme could support engineered removals.
- Alignment with the Paris Agreement –what it means for the ACCU scheme to be aligned with the Paris Agreement including an increased emphasis on integrity and double counting. The authority will consider Australia’s role in international carbon trading.
The authority received valuable feedback in response to the Issues Paper released in May. Submissions have helped inform the authority’s analysis. The authority is also hosting events, webinars and roundtables. For more on the authority’s consultation activities please see our consultation page.
The authority would like to discuss the latest thinking for this year’s review at a webinar on 17 October. Please register to join the webinar here(Opens in a new tab/window).
If you have any questions about the review, please contact the authority via consultation@climatechangeauthority.gov.au