ACCU Scheme Reviews

ACCU Scheme reviews

The Climate Change Authority is required to review the Carbon Credits (Carbon Farming Initiative) Act 2011(Opens in a new tab/window) (the CFI Act), which supports the Australian Carbon Credit Unit (ACCU) Scheme every three years. 

The ACCU Scheme enables eligible projects to generate carbon credits – known as ACCUs – by undertaking activities that either reduce emissions or store carbon, removing it from the atmosphere. Each ACCU represents one tonne of carbon dioxide equivalent (t CO₂-e) sequestered or avoided. These units can be sold to entities with emissions reduction compliance obligations, for example under the Safeguard Mechanism, or to voluntary buyers looking to offset their emissions. 

The Clean Energy Regulator administers the ACCU Scheme(Opens in a new tab/window), with methodologies endorsed by the Emissions Reduction Assurance Committee(Opens in a new tab/window) and approved by the Minister for Climate Change and Energy.

2026 review of the ACCU Scheme

The Authority is preparing its fifth review of the ACCU Scheme and will provide a report to the Minister by the end of 2026.  

The Authority is doing this review in the context of: 

• Australia’s new 2035 emissions reduction targets
• Changes to the Safeguard mechanism in 2023, which shifted the main purchaser of ACCUs from the Government to liable Safeguard entities
• Progress on Article 6 arrangements under the Paris Agreement about the international trading of offsets.  

The review will work to answer the question of whether the ACCU Scheme is correctly calibrated to deliver sufficient abatement to meet the needs of a decarbonising economy.

The aim of the review is to make recommendations that, if implemented, will:

• Improve the operation of the scheme
• Support public confidence in the scheme
• Make sure that it is effectively helping to achieve Australia’s emissions reduction goals.   

A public consultation opened on 20 October 2025 and will close on 8 December 2025. 

To find out more, visit our consultation hub(Opens in a new tab/window)

If you have any questions about the review, please contact the Authority via enquiries@climatechangeauthority.gov.au