Australian Carbon Credit Unit Scheme

What is the Australian Carbon Credit Unit Scheme?

The Australian Carbon Credit Unit (ACCU) Scheme encourages people and businesses to run projects that reduce emissions or store carbon, for example by:

• using new technology
• upgrading equipment
• changing business practices to improve productivity or energy use
• changing the way vegetation is managed.

Project and contract register

Use the ACCU Scheme project and contract register to find out more about the projects being run in Australia.

How it works

Under the ACCU Scheme, participants run projects that reduce or avoid greenhouse emissions (emissions avoidance) or remove and store carbon from the atmosphere (sequestration). Participants can earn one ACCU for every tonne of carbon dioxide equivalent (t CO₂-e) emissions their project stores or avoids.

Participants can sell ACCUs on the secondary market or to the Australian Government by entering a carbon abatement contract.

On the secondary market, private buyers purchase ACCUs to voluntarily offset their emissions or meet compliance requirements.

Buyers also include Australia's highest emitting facilities under the Safeguard Mechanism. They're required to keep emissions below set baselines and can do this by buying and surrendering ACCUs. Safeguard facilities can also earn ACCUs by running their own projects.

Who can participate

Individuals, sole traders, companies, local, state and territory government bodies and trusts can participate in the ACCU Scheme.

For example, industry, business, landholders, farmers and First Nations people can run projects to reduce emissions, improve energy efficiency, avoid emissions of methane and nitrous oxide, or convert methane and more. They can also store carbon or avoid emissions from agricultural activities, including:

• reforestation
• revegetation
• savanna burning
• managing beef cattle herds
• restoring blue carbon ecosystems
• restoring rangelands
• improving soil carbon
• protecting native forest or vegetation at risk of clearing.

Find out more about the different project methods.

Non-carbon benefits

As well as earning ACCUs that can be sold to generate income, there are other key benefits for running projects.

These can be environmental, economic, social and cultural benefits and include things like:

• improving water quality, reducing soil erosion and reducing salinity through revegetation activities
• improving farm resilience and sustainability by diversifying land use
• improving farm productivity by replenishing soil's carbon content
• valuing traditional knowledge of fire management, providing economic opportunities for First Nations communities and reducing late season wildfire damage in savanna areas
• increasing biodiversity and expanding habitats for native species
• lowering emissions and reducing energy costs for Australian businesses.

Our role

We administer the ACCU Scheme by:

• assessing project applications for registrations
• assessing project reporting
• ensuring scheme compliance
• issuing ACCUs
• managing carbon abatement contracts
• publishing the ACCU Scheme project and contract registers.

The Department of Climate Change, Energy, the Environment and Water oversees the policy of the ACCU Scheme. Read the policy intent on the department’s website.

Legislative framework

• Carbon Credits (Carbon Farming Initiative) Act 2011
• Carbon Credits (Carbon Farming Initiative) Rule 2015