Introduction and purpose
The Climate Change Authority is reviewing the Carbon Credits (Carbon Farming Initiative) Act 2011, which underpins the Australian Carbon Credit Unit (ACCU) Scheme. The Authority’s 2026 review will explore the role of the ACCU Scheme in meeting Australia’s emissions reduction goals, with a focus on methodologies and market dynamics.
To inform the review, the Authority has invited public feedback and is holding other targeted consultations. This listening report highlights themes we have heard through the Authority’s engagement and consultation activities up to January 2026.
How we consulted
Public consultation and engagement
- Issues paper open to submissions from 20 October to 8 December 2025
- Information webinar held on 20 November 2025.
92 | 459 |
|---|---|
submissions received | webinar attendees |
Other consultation and engagement
Meetings with government agencies including the Clean Energy Regulator and the Emissions Reduction Assurance Committee.
What we heard
A summary of the feedback we received is presented below based on the 2 focus areas explored in the Issues Paper: methodologies and ACCU market dynamics.
Overarching themes
- The ACCU Scheme plays an important role in meeting Australia’s emissions reduction targets.
- Integrity is central to confidence in the scheme.
- Policy certainty is needed to support business investment.
- Recommendations made by the Chubb Review (2022) and the last Climate Change Authority review (2023) remain relevant.
Methodologies – new and existing
Improving method development processes
- Frustration with method development processes, which are seen as slow and unclear.
- Calls for statutory timeframes, transparent work programs and greater resourcing.
- Support for proponent-led and modular approaches to accelerate progress.
- Suggestions that the Emissions Reduction Assurance Committee play a more active role during method development.
- Questions on whether methods need to be legislative instruments.
Diversifying methods and supporting innovation
- Interest in novel removal technologies (for example, direct air capture, biochar, and carbon capture, utilisation and storage) and new land-based methods.
- Requests from First Nations organisations for more resourcing and time for method development.
- Calls to reduce barriers to participation through templates, simplified reporting for smaller projects and aggregation pathways.
- Proposals for stacking carbon and transparency in benefits, including cultural and nature repair.
Strengthening integrity and accounting rules
- Concerns about additionality, permanence, risk of reversal and risk of double counting.
- A view that free, prior and informed consent of First Nations stakeholders needs clearer legislative embedding and resourcing.
- Proposals to publish more project level information like audit reports and permanence plans.
ACCU market dynamics
Supporting First Nations leadership and benefits from carbon projects
- Agreement that carbon projects present important economic and cultural opportunities for First Nations peoples, and requests for registries and frameworks to include consent attributes.
- Suggestions that government ACCU purchases should prioritise projects with First Nations projects.
Giving investors clear and stable market signals
- Forward price signals identified as being critical for investment.
- Calls for stability in policy settings.
- Suggestions for publishing demand forecasts and aggregated market data.
- Mixed views on the appropriate balance between on-site emissions reductions and the use of ACCUs for Safeguard Mechanism compliance.
- Concern that current ACCU pricing does not provide a strong incentive for on-site emissions reduction activities at Safeguard facilities.
- Proposals for the Government to explore international linkages, with others urging caution.
Improving regulatory transparency and data sharing
- Calls for greater regulatory transparency and visibility across the ACCU Scheme, including registry interoperability, publication of audit reports, and improved public access to ACCU data.
- Desire for visibility of method pipelines and clearer explanations of decisions.
- Risks highlighted around vegetation removal after crediting periods end.
What we’ll do next
Submissions made to the Authority are valuable in shaping our advice to government. We received a high number of submissions covering a wide range of interests, including many scheme participants. In the coming months we will progress our own analysis, and are planning a series of targeted engagements to deepen our understanding of the challenges and opportunities, stakeholder perspectives, and possible solutions. This engagement will include stakeholders that are not participants in the scheme.
The review will aim to be given to the Minister for Climate Change and Energy in August 2026 with the report published on our website shortly after. Further project updates will be available on the ACCU Scheme Reviews project page.
Public submissions
The Authority released public submissions to this consultation on 13 March 2026.
View public submissions on our consultation hub(Opens in a new tab/window).
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