The Carbon Market Institute welcomes the release today of the Australian Government’s response to the Climate Change Authority’s reviews of the Carbon Credits (Carbon Farming Initiative) Act 2011 and calls for legislative amendments to be tabled in Parliament as an urgent priority. The Act establishes the Australian Carbon Credit Unit (ACCU) Scheme.
“In either agreeing or agreeing in principle to all 15 recommendations made in the 2023 ACCU review report, the government has taken a positive step toward supporting ongoing integrity, and investor and community confidence in Australia’s carbon market,” said John Connor, CEO Carbon Market Institute.
“The ongoing integrity of Australia’s carbon crediting framework is integral to the reformed Safeguard Mechanism. It is now important that the government progresses this year with legislative amendments to reform the ACCU Scheme in line with the Authority’s report and also the outstanding recommendations of the 2022 Independent ACCU Review.”
“The response highlights government plans and budgetary commitments to support first nation organisations to benefit and access the carbon market which can enable greater investment, participation and self-determination,” said Connor.
“The CFI Act needs to be amended to improve Native Title Eligible Interest Holder Consent in the ACCU Scheme using the principles of Free, Prior and Informed Consent, which needs to urgently progress alongside further support for first nation organisations and others in promoting best practice,” said Connor.
“Legislation will be needed to implement many of these responses, including to establish the Carbon Abatement Integrity Committee and to heighten transparency. It is vital we make progress on this as well as advancing ACCU methods under consideration for public consultation to ensure accelerating investment in climate solutions that are enabled under the ACCU framework,” said Connor.
In its 2023 report, the Authority found that ‘the scheme is fundamentally well designed, with robust governance, compliance and enforcement structures to support integrity.’
Furthermore, ‘the ACCU scheme can help support the transition to net zero emissions by 2050 by mobilising finance for abatement activities that would not otherwise occur, helping to provide abatement to sectors that currently lack technological or cost-effective decarbonisation pathways, and reducing the cost of achieving emissions reduction goals. Many ACCU projects also contribute to positive environmental, economic and societal outcomes, creating opportunities for First Nations people, rural, regional and remote communities and supporting biodiversity.’
Earlier this week the government also released its response to the Climate Change Authority’s review of the operations of the National Greenhouse and Energy Reporting (NGER) Legislation. Most of the 25 recommendations were either accepted or accepted in principle.
“The Carbon Market Institute is looking forward to contribute to the design and implementation of the measures contained in the government’s response to these important reviews,” concluded Connor.
CMI submission to the Climate Change Authority’s 2023 consultation on the NGER Act, CFI Act.
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About the Carbon Market Institute: CMI is an independent member-based institute that promotes best practice in market-based solutions and decarbonisation investment to help limit warming to 1.5ºC. CMI’s around 150 strong membership includes organisations from across the economy, in Australia and the Asia Pacific region. CMI also administers the Australian Carbon Industry Code of Conduct, which was established in 2018 to promote and steward consumer protection and market integrity. The CMI Board updates CMI’s Policy Positions annually, which draw on practical insights from—but are ultimately independent of—members.
Media contact: Marion Demann, CMI Communications Director, media@carbonmarketinstitute.org
