The Australian Carbon Credit Unit (ACCU) Scheme is a government program that encourages projects that reduce greenhouse gas emissions or store carbon.
Projects in the scheme can earn carbon credits (called ACCUs).
These credits can be sold to private buyers or domestic governments, creating ways to earn and diversify income while also supporting climate action.
Project activities can have additional benefits like improving your soil health, productivity and resilience to extreme weather (Clean Energy Regulator (CER)).
How it works
Key things you need to know about how the scheme works:
- Voluntary participation: You choose whether to participate.
- Earn ACCUs: You get one ACCU for every tonne of carbon dioxide equivalent your project avoids or stores.
- Approved methods: There are official requirements that make sure your project delivers real carbon benefits. See examples of methods (CER).
- Long-term obligations: some projects, especially those that store carbon (like planting trees), come with long-term obligations. You’ll need to maintain the carbon storage for either 25 or 100 years—this is called the permanence period.
Eligible projects may change over time as approved methods are closed, reviewed or created. When a method is closed, projects already registered under that methods can continue. New projects may not be registered under closed methods.
Selling and using ACCUs
Once you earn ACCUs, you have two options:
- sell them to private buyers, or to domestic governments (offsetting)
- cancel them to claim against your own emissions reductions (insetting).
Businesses sometimes buy ACCUs to meet climate goals or regulatory requirements. This creates a market for the credits you generate.
Learn more about ACCUs (CER).
ACCUs are tracked in a secure online system, the Unit and Certificate Registry (CER).
Offsetting
You can:
- earn ACCUs by running an eligible project on your land
- sell those ACCUs to parties that want to reduce their carbon footprint.
This makes you a supplier of ACCUs. Credits you sell cannot be counted against your own farm’s emissions savings.
Insetting
You can also use ACCUs to inset your own emissions. This means you can:
- earn ACCUs by running an eligible project on your land
- voluntarily cancel them to count the emissions savings toward your own farm’s carbon footprint.
ACCUs you count against your farm’s emissions savings must be voluntarily cancelled and cannot also be sold on a carbon market to others.
You do not need to have an ACCU to inset your emissions. See more information on how to inset without an ACCU.
A real example: insetting on a livestock enterprise
Learn more about insetting from this example on a livestock enterprise (Meat & Livestock Australia).
If you’re considering offsetting or insetting your operations, it’s important to carefully consider if it’s right for you as there can be risks. You should seek independent, professional advice about your specific circumstances.
Understanding the market
The price of ACCUs changes based on supply and demand. Farmers and land managers help supply the market, while businesses and domestic governments create demand.
It’s important to understand market trends if you want to be a participant. ACCU price data and market information is available in the Quarterly Carbon Market Reports (CER).
You can learn more about how the market works (CER).
Find projects near you
You can explore existing projects using the ACCU project and contract register (CER). You can see project details like location, method and how many credits have been issued.
It also has an interactive map showing where projects are happening across Australia. These tools can help you find out if there’s a project near you.
What to consider
In assessing the appropriateness of a carbon project for your farm business, you will need to consider risks and benefits. Every farm and business are different, so what works for one may not work for another.
CER has resources to help you plan your project. AgriFutures’ handbook to on-farm carbon management explains opportunities, pitfalls and risks (free download).
The Carbon Market Institute has further guidance for farmers considering an ACCU Scheme project in partnership with a third party. The guide includes a series of checklists that are designed to cover off on key questions a landholder should ask before entering a carbon farming agreement.
States governments also have a range of resources to help you consider the benefits and risks:
- New South Wales: Frequently asked questions and questions to ask a carbon service provider
- Queensland: Information for landholders
- Western Australia: Planning a carbon project
- Victoria: What to consider
Service providers, such as legal services, financial advisors, agents and aggregators, can also help you understand your obligations and risks.
You can find carbon service providers by searching online or on the Carbon Market Institute's directory. If you engage a carbon service provider, make sure their approach matches your goals.
Financial and other risks
Different methods and project activities have different costs and returns. Refer to the CER’s guidance library for access to method guides with information on estimating project returns, obligations and costs.
There are also other factors that need to be considered before commencing a carbon project, including risks around:
- long term obligations, which can limit what farmers and land managers can do with their land in the future
- fires, poor management or equipment failure releasing carbon back into the atmosphere, which can impact a project and cause a reversal of a carbon outcome
- selling land that has an ACCU project on it, as the new owner must continue to meet the project’s obligations.
Carbon offtake agreements
You can lock in a sale price by signing a contract with a private buyer who agrees to purchase a set amount of carbon credits over time. This gives you price certainty but may mean missing out on a higher price if prices rise later.
Before you start, it’s a good idea to get independent advice to see if this approach is right for you.
How to participate
If you want to participate in the ACCU Scheme, there are a few key steps to follow. Careful planning is important to make sure your project is eligible, meets all the requirements and is the right choice for your farm business.
Go to CER for steps to participate in the ACCU Scheme. The Carbon Market Institute also has a range of guidance for landholders.
Additional resources
Learn more about the laws related to the ACCU Scheme and some key resources.
Laws and regulations
The ACCU Scheme is set up by the Australian Government and managed by CER. The Scheme is governed by two key laws:
- Carbon Credits (Carbon Farming Initiative) Act 2011
- Carbon Credits (Carbon Farming Initiative) Rule 2015
See more
- CER: Full overview of the ACCU Scheme.
- CER: How to combine smaller projects to get better financial outcomes, more flexibility and better risk management.
- Carbon Market Institute: Specific information on how to prepare and participate in the ACCU Scheme.
- CSIRO Landscape Options and Opportunities for Carbon abatement Calculator: Mapping tool that provides a quick assessment of emissions reduction or carbon storage that could be achieved by doing ACCU Scheme projects.
- DCCEEW: Monitor the status of ACCU methods at different stages of the method lifecycle.
Contact
If you’re interested in running an ACCU project, contact CER.