I am writing to update you on our recent government relations and stakeholder engagement activities, particularly in relation to ACCU Scheme Reforms and the development and finalisation of the Integrated Farm and Land Management (IFLM) method.
On 4-5 February, I was in Canberra for a series of productive meetings with a wide range of stakeholders across government and industry. These included advisers to the Hon. Chris Bowen, Senator Murray Watt and Hon. Josh Wilson, as well as senior departmental officials including Mike Kaiser (Secretary, Department of Climate Change, Energy, the Environment and Water), Andrew Hutchinson, Kate-Lea Perry and Dean Knudson. Engagements also included representatives from the Department of Agriculture, Fisheries and Forestry, Australian Treasury and the National Farmers’ Federation.
The consistent objective across these meetings was to build relationships, establish a regular cadence of engagement and exchange on particular policy and market issues. Encouragingly, there was strong receptivity to the proposition that Australia needs a shared, long-term understanding of how the carbon market will evolve to meet net zero commitments. Developing this shared roadmap would provide greater business confidence, strengthen the investment case for participation, and serve as a critical reference point for periodic scheme reviews. This framing was particularly well received by Secretary Kaiser and Treasury officials.
The Department, led by Mike Kaiser, has expressed a clear interest in collaborating on improvements to the ACCU Scheme and in strengthening interoperability with emerging natural capital frameworks, including the Nature Repair Market. Reflecting this, I was invited to participate in a strategic workshop on 17 February, convened by Secretary Kaiser to consider the future of the ACCU Scheme and its interface with nature repair markets. This was an important opportunity to help shape the system architecture at a strategic level and identify quick wins. I emphasised the critical need for rapid progress on getting the IFLM method to a viable minimum product which was widely accepted as a short-term priority.
Importantly, there is renewed Departmental focus on ACCU Scheme reform prioritisation and also incentivising new abatement whilst exploring opportunities for the ACCU Scheme such as innovation, interoperability, increased Indigenous participation and recognition of non-carbon benefits. As an indication of this, DCCEEW will be imminently releasing an ACCU Scheme Progress Report. We welcome the release of the report and the commitment to the reforms already undertaken such as strengthening governance arrangements, transparency and integrity assurance. However, we continue to stress the need for accelerating the pace and prioritisation of the reforms, particularly Native Title consent processes. CMI will look to organise a member briefing to unpack the report and the opportunities.
IFLM Method Development
We are acutely aware of, and share, members’ frustrations regarding the draft IFLM method currently released for consultation by ERAC and the ongoing protracted delays. We have been clear with the Department that the current draft is not acceptable in its current form and does not present a commercially viable pathway for proponents (please see CMI’s Briefing Note on the IFLM Method Draft Exposure).
At the same time, our approach has been to continue to be constructive. We are working to provide practical, workable solutions and technical improvements to the drafts—on the basis that the process is transparent, clearly articulated and responsive. We have had numerous meetings in relation to the method and have secured the attention of DCCEEW, the Minister’s Office, the Emissions Reduction Assurance Committee and other key decision-makers responsible for delivery. We are currently co-designing a process, involving industry, to advance the method post-consultation, addressing the design and technical issues and providing a viable, working legal draft.
Given this level of engagement, our current strategy is not to pursue a media campaign. We consider that direct engagement, supported by a strong technical evidence base, is more likely to achieve the necessary refinements, especially at a time of new leadership in key roles (Secretary of the Department, the Division Head for Emissions Reductions and a new CMI CEO).
The CMI IFLM Taskforce remains the appropriate vehicle for progressing detailed technical solutions and ensuring that member expertise is channelled effectively into the process. The Taskforce is made up of over 60 individuals from 40 organisations across the membership with a broad skillset base and decades of experience collectively. The Taskforce has been supported by a CMI Secretariat, and coordination is overseen by Janet Hallows, Director at CMI. During the consultation, the Taskforce has been meeting on a regular cadence to discuss technical, scientific and commercial aspects of the method and addressing improvements to the draft which will be drawn together in a submission. CMI will also lodge a submission to the consultation looking at high-level and policy aspects. We encourage members to also prepare submissions individually and invite you to utilise the Briefing Note as a basis.
I would like to thank Taskforce Co-Chairs, coordination committee, and members for the incredible time, energy and resources they have committed to this process and the DCCEEW co-design process over the years. CMI and the Taskforce have been engaging considerably with state governments and other key stakeholders on a regular basis, have led a field trip to Western Australia, and prepared numerous resources and tools which can be found at the IFLM Hub on CMI’s website.
We will continue to advocate firmly for a framework integrated method that is scientifically credible, administratively workable and commercially viable – and that contributes meaningfully to Australia’s long-term net zero trajectory and broader environmental outcomes.
We will keep members closely informed as this work progresses.
Dr. Sasha Courville
CEO, CMI