The ACCU Scheme

Markets to sell and buy carbon emissions have gained momentum worldwide since 1992 when the United Nations Framework Convention on Climate Change (UNFCCC) designated carbon markets as one of its main policy instruments to mitigate anthropogenic climate change. Australia has committed to a 43% reduction on 2005 emissions levels by 2030 and has seen substantial policy development around carbon markets over the past decade, including government purchases, compliance-based and voluntary approaches.

The primary market mechanism for trading carbon from sequestration projects in Australia is the The ACCU Scheme (formerly the Emissions Reduction Fund (ERF)). Participation in the The ACCU Scheme is voluntary and it operates according to a baseline and credit model, whereby emitters can earn credits by reducing emissions below a baseline level and landholders can earn credits by sequestering carbon above a baseline level of carbon stored in the vegetation on their land. The ACCU Scheme has a single buyer (the Australian Government) and prices are determined through regular auctions of Australian carbon credit units (ACCUs), which are awarded to bidders willing to provide abatement at the lowest cost. To understand more about carbon credits please the Clean Energy Regulator website.

While the ACCU Scheme focuses on a diversity of sectors such as energy efficiency, facilities, mining, oil and gas, waste, waste water and agriculture, the majority of the projects relate to vegetation management. Different methodologies relating to vegetation management have been developed. See the Clean Energy Regulator for details around methodologies.

Further independent information can found below at the Carbon Market Institute