We take compliance action to ensure the integrity of our schemes. Our compliance update keeps you informed of activities related to our compliance and enforcement priorities 2025–26. The update sets out our expectations of compliance by scheme participants and highlights the areas of focus for compliance action.
Australian Carbon Credit Unit (ACCU) Scheme
Revocation of ACCU projects
As a result of our ongoing review of projects that have failed to report on time, during October–December 2025 we revoked 21 projects through voluntary applications from the project proponent. If ACCUs have been issued in connection to a project, the project would be subject to relinquishment requirements prior to revocation. No ACCUs were issued to these projects.
Project revocations are an expected outcome for a minor proportion of ACCU Scheme projects, allowing for projects that are unlikely to deliver carbon abatement to be removed from the scheme.
Notify the regulator: new online form
We have streamlined compliance notifications with the new Notify the regulator form now available in Online Services. ACCU Scheme participants may use this form to report significant events, including changes to legal right, natural disturbances, errors in previously submitted offsets reports and other matters required under individual methods. Timely notification is a legislated obligation for project proponents, with penalties for non-compliance. Failure to notify us of the relevant events within the required timeframes may also affect a project proponent’s fit and proper person status.
Disturbance monitoring and notification obligations
Proponents of sequestration projects must notify us of any significant disturbance events leading to reversal of carbon stocks.
If a fire impacts your project, we encourage you to stay safe and prioritise community health and safety. Once it is safe to do so, proponents of sequestration projects must notify us of any significant fire events leading to reversal of carbon stocks.
Three proponents alerted us of significant fire disturbance events affecting their project during the quarter, taking the total number of notifications for 2025 to 8. We are working with the impacted proponents on ways to restore the carbon back to previous levels.
We use remote sensing to monitor fire scars across Australia. If a fire event occurs and you do not notify us, it will be detected. Project proponents are required to establish and implement effective permanence plans and maintain evidence of mitigation activities. Failing to effectively manage permanence and taking appropriate steps to mitigate the risk of fire may trigger relinquishment of ACCUs should a fire event occur. See reducing the risk of fire and preserving sequestered carbon in ACCU Scheme projects.
Notification of significant disturbance events is not limited to fire. We have also received 18 notifications about flood events affecting ACCU project areas.
Permanence obligations
As of 1 January 2026, 48 sequestration projects have finished their crediting periods. ACCU Scheme project proponents must continue to meet relevant reporting, monitoring, notification and record-keeping requirements after their crediting period finishes. Proponents that do not maintain these requirements in the post-crediting permanence period may be subject to civil penalties. In the event of a natural disturbance, proponents that have not taken appropriate steps to manage permanence should expect to be required to relinquish ACCUs. We recently held a webinar on post-crediting period permanence obligations.
National Greenhouse and Energy Reporting (NGER) Scheme and Safeguard Mechanism
Safeguard facilities and excess emissions
The next compliance deadline under the reformed Safeguard Mechanism is 31 March 2026.
Safeguard entities with facilities that exceed their baseline must manage their excess emissions by surrendering ACCUs and Safeguard Mechanism credit units (SMCs) or accessing a range of flexibility measures subject to meeting the required eligibility criteria.
We encourage participants to engage early about how to ensure they are not in an excess position by the deadline.
Entities that do not meet their obligations should expect the commencement of civil proceedings, which can result in substantial civil penalties. An enforceable undertaking will only be accepted in exceptional circumstances.
Enforceable undertaking with Fitzroy (CQ) Pty Ltd
Fitzroy (CQ) Pty Ltd has met its surrender obligations arising under the enforceable undertaking entered into in April 2025 under the Safeguard Mechanism. We accepted an undertaking from Fitzroy due to the presence of exceptional circumstances, including that in the year ending 31 December 2024 it made a significant financial loss.
Fitzroy has surrendered all the 546,906 prescribed carbon units required to comply with the enforceable undertaking, which was its excess position for the 2023–24 compliance period. Fitzroy has also conducted 3 feasibility studies to investigate carbon abatement opportunities.
National Greenhouse and Energy Reporting
We published the details of 8 organisations that reported after the 31 October 2025 deadline. All 8 of those organisations have now met their reporting obligations.
Failure to submit a report by the due date is a contravention of the National Greenhouse and Energy Reporting Act 2007 and may result in an infringement notice being issued or the commencement of civil penalty proceedings.
Renewable Energy Target (RET)
Success of 2025 quarter 3 small-scale technology certificates (STCs) surrender
The statutory deadline for surrendering STCs for Q3 2025 was 28 October. The strong level of compliance from liable entities continued in quarter 3 with 100% of certificates surrendered on time.
Enforcement action against Mojo Power East
We obtained a federal court order to wind up Mojo Power East Pty Ltd (formerly People Energy Pty Ltd) on 25 November 2025 due to unpaid shortfall charges and interest for the 2022 and 2023 RET assessment years. Mojo Power East Pty Ltd (formerly People Energy Pty Ltd) is a subsidiary company of iON Holdings Ltd, a company with a significant history of non-compliance specifically in relation to their failure to settle debts accrued under the scheme for its subsidiaries (Mojo Power East Pty Ltd, Mojo Power Pty Ltd, Qenergy Limited and Sanctuary Energy Pty Ltd).
Sigenergy product recall
The Australian Competition and Consumer Commission has issued a voluntary recall on a Sigenergy single phase energy controller. Sigenergy have committed to replacing all affected units. Find out more about the recall issued.
In reviewing the learnings from this incident, we have written to all manufacturers and installers to emphasise the requirement for early notification of systemic risks to ensure that these can be assessed and referred to the appropriate regulatory authority. Where a manufacturer fails to notify, we will not hesitate to use our compliance powers to remove participants from the scheme. Read our letter to manufacturers.
Ensuring integrity of battery installations
We are closely monitoring compliance of installers under the Cheaper Home Battery Program and have written to all installers to remind them of their obligations to comply with all scheme requirements including Australian Standards and state and territory safety requirements. Our inspections program will continue to build with a focus on installers whose previous inspections results have been substandard or unsafe.
We will remove installers from the scheme who are found to have 3 or more adverse inspection findings or instances where Australian Standards have not been met. Read our letter to installers.