The release of the Reforming the ACCU Scheme progress report by the Department of Climate Change, Energy, the Environment and Water provides a much-needed update on actions undertaken to date to implement ACCU Scheme improvements in line with recommendations from the independent review.
The Carbon Market Institute (CMI) welcomes the release of the report as an indication of renewed government commitment to the reforms. To ensure timely implementation of the reforms, a clear implementation delivery plan with timelines is needed to underpin confidence in the Scheme’s ability to deliver high-integrity abatement.
“This progress demonstrates government’s recognition of the importance of a strong and trusted ACCU Scheme,” said Dr. Sasha Courville, CEO CMI.
“The foundations are being strengthened through a process of continual improvement. The next phase needs clear plans with measurable milestones for market confidence. Without timelines, reforms risk becoming aspirational rather than operational.”
The previous staged implementation approach has seen reforms undertaken such as strengthening governance arrangements, transparency and integrity assurance. CMI has welcomed the appointment of a full-time Chair to ERAC and shift of responsibility of method development functions to the department, bolstering ERAC.
CMI has also welcomed and supported amendments allowing increased transparency of project information on the ACCU register. Whilst ACCU method reforms saw a new framework for method development led by proponents, HIR gateway checks and audits, and the release of new methods like the Reducing Methane Emissions from Landfill Gas method there are ongoing systemic issues that require urgent attention.
In its submission to the Climate Change Authority’s 2025 review, the CMI called for a review and reform to the proponent-led method development process and timely development of priority methods to address current delays, alongside building a strategic pipeline of future ACCU supply through gap analysis and prioritisation–and a government purchasing strategy to support investment.
“Reforming the ACCU Scheme is not only about integrity today—it’s about ensuring there is a forward pipeline of high-quality ACCUs to meet future demand and support Australia’s decarbonisation pathways and ensure Australia has a stable, high-integrity and investible carbon market,” said Courville.
“In acknowledging the progress achieved to date, therses and method developments.”
“Beyond governance reform, the Scheme must deliver scalable, commercially viable methods that drive sustained industry participation, incentivise carbon abatement and attract capital investment.”
“Well-designed methods are the engine room of the Scheme and the current shortage of viable methods is causing substantial financial and resourcing pain to project developers.” Policy makers, investors and emitters need to be aware of the criticality of a healthy, dynamic supply industry.”
The ACCU Review implementation is vital in improving Australia’s carbon crediting mechanism and to broader policies driving at-source decarbonisation, such as the Safeguard Mechanism.
“CMI looks forward to supporting, and where possible, accelerating further progress on the implementation of the recommendation,” concluded Courville.
Link to Reforming the ACCU Scheme – Progress report 2023–2025
