A project earns Australian carbon credit units (ACCUs) by registering under the ACCU Scheme, running its activities under an approved method, and reporting the abatement it achieves to the Clean Energy Regulator (CER). The CER issues one ACCU for each tonne of carbon dioxide equivalent the project stores or avoids.
Key points
- Register with the Clean Energy Regulator and follow an approved method
- Project must be new, beyond business as usual and not legally required
- Avoidance projects report at least every 2 years, sequestration every 5
- At least three scheduled audits per project
- Sequestration projects carry a 25 or 100 year permanence period
Who can take part
Individuals, sole traders, companies, government bodies and trusts can participate. The participant must have the legal right to carry out the project, hold the lawful and exclusive right to be issued the ACCUs, and pass a fit and proper person assessment.
Project eligibility
The project must be new, meaning its activities have not started. It must go beyond business as usual, must not be required by law, and must not receive financial support from specified government programs. It must also avoid activities excluded under the Carbon Credits legislation.
Methods
Every project follows a method, a legislative instrument that sets the eligible activities, how abatement is measured, and the monitoring, record-keeping and reporting rules. Methods span agriculture, energy efficiency, landfill and waste, mining, oil and gas, and vegetation.
The project steps
The CER sets out the path as: check eligibility, choose a method, plan the project, choose a proponent, apply to register and open an ANREU account, run the project, report on performance, claim ACCUs, and then sell or use them. Projects can be varied or revoked along the way.
Reporting and audits
Emissions avoidance projects report at least every two years and sequestration projects at least every five years. The first project report must include an audit report, and the CER schedules at least three audits over a project’s life, with more if triggered.
Sequestration projects
Projects that store carbon must maintain it for a permanence period of 25 or 100 years, chosen at registration and not changeable afterwards. A 25-year period attracts a discount on the ACCUs issued.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.