The Australian Carbon Industry (ACI) Code of Conduct Administrator has released its Annual Compliance Report for the 2023-2024 financial year. The report shows an increase in compliance despite a slight increase in complaints received. The Code covers the majority of land-based ACCUs registered in Australia.
The 2023-2024 reporting period has seen remarkable progress in upholding the Code’s rigorous standards. The Code Administrator has been actively engaged with signatories to foster a culture of transparency, integrity, and accountability within the Australian carbon market.
CMI’s Director of Integrity and Compliance and Code Administrator, Samuel Dawes said: “In the past year the significance of the Code in promoting best practices in the Australian carbon market has increased.”
“Looking ahead, we will be implementing the recommendations from the recent Independent Review and addressing the challenges highlighted in this year’s report.”
Chair of the Code Review Panel, Virginia Malley commented: “The Code remains responsive to the broader context in which its signatories operate: the market forces, regulatory settings, reform pipelines, and the collective role in helping Australia meet its high integrity carbon abatement ambitions.”
“A critical function of the Code Review Panel is the oversight, monitoring, and guidance of the Code. The Panel consulted with Vicki Mullen during the second Independent Review of the Code, ensuring it remains fit for purpose amid the evolving carbon market landscape.”
CMI CEO, John Connor added: “It’s encouraging to see the Code’s continual evolution and increased recognition. Signatories should be congratulated on adopting a higher standard of practice in their activities in the broader carbon market.”
“I look forward to the continued support the Code can provide to signatories in best practice particularly in relation to engagement with First Nation peoples, landholders and regional stakeholders.”
Key Highlights from the Annual Report 2023-2024:
- Stakeholder Engagement: Over 2,200 stakeholders, signatories, and consumers were reached.
- Signatory Growth: A 28% increase in signatories since FY23.
- Compliance Rates: 87% of signatories were fully compliant in FY24, up from 85% in FY23.
- Complaints and Reporting: An increase in both self-reported issues and consumer complaints since the Code’s operational stage began.
- Project Coverage: 65% of land-based ACCU projects registered since 2018 are covered by the Code.
- Conditional Registrations: 78% of ACCU projects undertaken by Signatories post-2018 are conditionally registered, a decrease from the previous year.
- Signatory Commitment: 43 signatories confirmed their commitment to the Code for FY24.
- Onboarding: Three new signatories have been onboarded for FY25, with six more in the onboarding process.
- Voluntary Carbon Market Engagement: 27% of signatories are involved in the Voluntary Carbon Market.
Future Priorities:
Looking ahead to the 2024-2025 financial year, the Code Administrator has outlined several strategic priorities to enhance the Code’s effectiveness:
- Implementation of the 2023 Independent Review Recommendations: Focus on implementing the recommendations to strengthen the Code’s framework, promote market integrity, and enhance consumer protections. This includes developing clearer signatory obligations and expanding the Code’s applicability.
- Indigenous Engagement: Support and work with First Nations groups and rural communities to maximise their participation in carbon farming activities and drive best practice engagement.
- ACCU Review Recommendations: Address the implementation of ACCU Review recommendations, particularly in aligning accreditation processes with evolving market needs.
- Monitoring ASIC RG 236 Amendments: Closely follow changes to ASIC Regulatory Guide RG 236, particularly regarding the applicability of the Australian Financial Services License (AFSL) to carbon market participants.
- Demand-Side Engagement: Increase efforts to raise awareness of the Code among consumer-side participants to ensure widespread understanding and application of its benefits.
- Record Keeping and Complaint Handling: Support signatories in enhancing record-keeping practices and refining complaint handling procedures to ensure prompt and effective resolution of issues.
The ACI Code Administrator Annual Report 2023-2024 is available on the Code’s website.
To enquire about the Code or become a signatory, visit www.carbonmarketinstitute.org/code or send an email to code.administrator@carbonmarketinstitute.org
About The Code
The ACI Code of Conduct is a voluntary industry code administered by the Carbon Market Institute (CMI). Launched in 2018, it represents Australia’s first consumer protection code for the carbon market. The Code sets industry best practices, promotes consumer protection, provides guidance and training, and upholds market integrity and transparency. For the annual compliance reporting process, Signatories submit a self-audit checklist to measure compliance and reaffirm their commitment to Code standards.
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