An Australian carbon credit unit (ACCU) represents one tonne of carbon dioxide equivalent (t CO2-e) that a registered project has stored or avoided, and that would otherwise have been released into the atmosphere. The Clean Energy Regulator (CER) issues ACCUs to projects under the ACCU Scheme, which operates under the Carbon Credits (Carbon Farming Initiative) Act 2011 and the Carbon Credits (Carbon Farming Initiative) Rule 2015.
Key points
- One ACCU equals one tonne of CO2-e stored or avoided
- Issued by the Clean Energy Regulator under the ACCU Scheme
- Held in ANREU accounts in the Unit and Certificate Registry
- Can be sold, surrendered under the Safeguard Mechanism or cancelled
Where ACCUs come from
Projects earn ACCUs by following an approved method. Eligible activities include reforestation and revegetation, savanna burning, beef cattle herd management, blue carbon restoration, soil carbon, protecting native forest and vegetation, energy efficiency, and capturing and combusting landfill gas. The ACCU project and contract register shows the projects running in Australia.
Who buys ACCUs
Demand comes from carbon abatement contracts with the Australian Government, Safeguard facilities meeting their obligations, state and territory governments, and organisations reducing their emissions voluntarily. Some buyers also value the environmental, economic, social and cultural benefits of the underlying projects.
How ACCUs are held
ACCUs are held in Australian National Registry of Emissions Units (ANREU) accounts in the Unit and Certificate Registry. Each ACCU carries a unique serial number, and ACCUs are issued in blocks with recorded serial ranges, so every unit can be traced to its issue.
How ACCUs are used
An ACCU can be held, sold, surrendered to reduce a Safeguard facility’s net emissions number, or voluntarily cancelled to offset emissions. A voluntarily cancelled ACCU is permanently removed from the market, and the CER publishes cancellations on its voluntary cancellations register.
ACCUs and SMCs
ACCUs and Safeguard Mechanism credit units (SMCs) are both prescribed carbon units under the Safeguard Mechanism. ACCUs are offsets from registered projects. SMCs are issued to Safeguard facilities that emit below their baselines, are not offsets, and cannot be voluntarily cancelled.
When ACCUs can be taken back
The CER can require ACCUs to be relinquished, for example where they were issued on false or misleading information, or where stored carbon is lost from a sequestration project and the proponent did not take reasonable steps to prevent or mitigate the loss.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.