Australian Carbon Credit Unit (ACCU) Scheme

Accuracy and complete applications and offsets reports

Applications and offsets reports under the ACCU Scheme must be complete, accurate and supported by evidence at the time of submission.
While we have been seeing a steady increase in the quality of applications that has led to decreases in assessment processing times, we are still seeing many issues that lead to the need for further information.

This quarter, we received 472 applications and issued 154 requests for further information. While some requests were minor clarifications, a significant proportion related to core eligibility requirements.

Legal right was the most common issue, with 32 requests made. Proponents must be able to clearly demonstrate:

  • the legal right to carry out project activities
  • the exclusive right to ACCUs for the full project crediting period. 

The next highest category related to net abatement calculations, with 20 requests issued. To support compliance with complex method equation requirements, proponents are expected to maintain robust modelling and calculation tools to demonstrate the integrity of their abatement results. 

Claims not supported by timely, verifiable evidence trigger further scrutiny and will delay ACCU issuance. Repeated requests on the same issue may raise concerns about a proponent’s capability. False, misleading, reckless or negligent information – including omissions – may lead to stronger compliance action, consistent with our compliance policy for education, monitoring and enforcement activities.

National Greenhouse and Energy Reporting (NGER) Scheme and Safeguard Mechanism

Managing facilities with excess emissions under the Safeguard Mechanism

The second compliance deadline under the reformed Safeguard Mechanism has passed. Safeguard facilities that exceeded their baseline had to manage their excess emissions, including through the surrender of ACCUs and Safeguard Mechanism credit units (SMCs). This must have occurred by no later than 31 March 2026.

Once again, compliance with the Safeguard Mechanism was high. Of the 208 covered facilities, 205 (98.6%) were compliant with the requirement to not be in an excess emissions situation on the compliance deadline of 1 April 2026. View full details of the 2024–25 safeguard outcomes.

There were 3 facilities under the operational control of 3 responsible emitters (all of which are related to one corporate group) that did not meet the surrender deadline, resulting in excess emissions situations totalling 317,212 t CO2-e on 1 April. These 3 responsible emitters are:

  • Tahmoor Coal Pty Ltd (in liquidation) for the Tahmoor Coal Mine facility
  • Liberty Bell Bay Pty Ltd (in administration) for the Liberty Bell Bay facility
  • OneSteel Manufacturing Pty Ltd (in administration) for the Whyalla Steelworks facility
    • OneSteel Manufacturing completed a partial surrender of 198,003 units to reduce their excess position. 

We take all non-compliance seriously and are considering appropriate and proportionate responses to each instance of non-compliance on a case-by-case basis.

National greenhouse and energy reporting

We have completed assessment of 2024–25 NGER reports in line with our compliance priorities. This assessment focused on reporters with a history of reporting errors and on safeguard facilities eligible for SMC issuance. We have nominated 8 NGER reporters (including 5 safeguard facilities) for audits based on our assessment findings. Reporters who do not meet their obligations should expect enforcement action including infringement notices and penalties.

Renewable Energy Target (RET) 

Successful 2025 RET liability compliance period

On 16 February 2026, we reached the last milestone for the 2025 RET liability compliance period. Liable entities have a statutory obligation to submit their annual energy acquisition statement, surrender a certain number of LGCs and STCs, or pay a shortfall charge penalty.

All 134 liable entities, including 6 new entities, met their lodgement obligations for the 2025 compliance period. Four entities had a shortfall for LGCs and paid a total of $116 million in shortfall charges. No entities had a shortfall for STCs. 

Phenix Trading’s registration permanently suspended

On 5 March 2026, we permanently suspended the registration of Phenix Trading Pty Ltd (Phenix Trading) as a registered person under the Renewable Energy (Electricity) Act 2000 (the Act). The suspension was based on our determination that Phenix Trading is no longer a fit and proper person for the purposes of the Act. The suspension follows regulatory action taken by state regulators in New South Wales and Victoria.

New photographic controls to detect non-compliant battery labelling

On 1 March 2026, we introduced a new control to address non-compliant battery labelling. The control requires that all STC claims are accompanied by geotagged, time-stamped and photographic evidence that the system complies with Australian Standard labelling requirements. 

Solar Accreditation Australia has released training materials to support installers with compliant labelling.

Solar battery STC changes

We have written to retailers and installers of solar batteries reminding them of their contractual obligations in relation to the 1 May solar battery STC changes. Retailers and installers must comply with the laws under the Renewable Energy (Electricity) Regulations 2001 and Australian Consumer Law when advertising, selling and installing solar batteries. If these requirements are not met, we will take compliance action.

We have also written to state and territory fair trading agencies and ombudsmen, advising them to be on the lookout for poor consumer practices including misleading quoting.

Action taken on non-compliant solar battery installations

Our inspection program has identified installers who did not comply with minimum Australian Standard installation requirements. As a result, we have initiated corresponding compliance actions.  

We may, by written notice, declare a person ineligible to design or install solar PV systems or batteries if that person has received adverse inspection findings on 3 separate occasions. We may also declare a person not eligible to install solar PV systems or batteries if they have:

  • made 3 or more statements about an installation that are false or misleading in a significant way
  • on 3 or more occasions installed a solar PV system or battery that breached local, state or territory requirements
  • on 3 or more occasions failed to comply with the relevant accreditation scheme.

Our expectation is that rates of compliance with the technical standards will materially improve in the coming months, and we will not hesitate to suspend installers that are not meeting the schemes requirements, including new controls for labelling.

Electricity Generation Return (EGR)

For the 2025 EGR reporting period, 96% of power stations met their EGR reporting obligations by the 16 February 2026 deadline. We suspended 48 power stations for failing to meet their reporting obligations on time.

We have informed the relevant participants that repeated non-compliance may impact their fit and proper person status under Regulation 3L of the Renewable Energy (Electricity) Regulations 2001. Additional non-compliance may result in further regulatory action, including the suspension of LGC creation. 

We will apply heightened and ongoing compliance monitoring to repeat late submitters. All scheme-related power station activities will be closely reviewed, and enforcement action will be taken where non-compliance is identified. 

We remind participants that it is their responsibility to ensure the accuracy, timeliness and integrity of reporting.