Projects under this method can earn Australian carbon credit units (ACCUs) by reducing or improving emissions at industrial and commercial sites.

When to use this method

The industrial and commercial emissions reduction method may be suitable for your business if you:

  • want to reduce emissions from energy use or processes at your industrial and commercial sites
  • can develop a baseline emissions model which estimates the emissions produced in the absence of the project
  • understand the technical requirements needed for this method, or can hire someone who does.

You can find out more in the industrial and commercial emissions reduction method guide. 



To be eligible for this method, you must:

  • provide a statement of activity intent that explains project activities wouldn't occur without the ACCU Scheme
  • have access to historical data on past energy consumption and emissions or have the capability to measure this data.

You must also meet general eligibility requirements for the ACCU Scheme.

Your project doesn't need to meet the newness eligibility requirement if it started activities before its crediting period.

Relevant legislation

  • Part 3 of the Act
  • Part 3 of the method


Activities are excluded from this method if they:

  • relate to a vehicle or aircraft that could be covered by the land and sea transport or aviation methods
  • involve equipment at residential premises, except commercial residential or retirement villages
  • involve the use of biomass that isn't an eligible renewable energy source
  • generate abatement through flaring or fuel incineration that dissipates heat into the atmosphere without producing heat for onsite use
  • lead or are likely to lead to a material impact on fugitive emissions
  • are greenfields projects that install new equipment unless they replace existing equipment or offset grid electricity use by existing equipment. Records from existing emissions-producing equipment are needed to develop a baseline emissions model
  • involve electricity generation equipment over 30 megawatts and send power to the grid that generates more electricity annually than before project registration.

Relevant legislation

  • Section 12 of the method

Method requirements

The industrial and commercial emissions reduction method replaced the industrial and fuel efficiency (IEFE) method which was revoked on 11 January 2023. New projects can’t be registered under the industrial and fuel efficiency method.

The industrial and commercial emissions reduction method supports new abatement opportunities.

Existing IEFE projects with crediting periods that have already started can:

  • move to the new method if they meet the eligibility requirements
  • continue using the IEFE method until the end of their crediting period.

You can apply to transfer your project through our Client Portal (via Online Services).

Projects registered under the facilities method may also wish to apply and vary their project to be under this method instead. You must apply to vary before submitting your first offset report. 

You must apply during the first reporting period for the project and before you submit an offsets report for that period.

For further guidance, you can contact us.

Projects under this method can consist of of one or more implementations.

An implementation represents discrete emissions-reducing activities to existing emissions-producing equipment at a site. You must define a boundary for each implementation. Boundaries may be defined by reference to:

  • a piece of equipment
  • a physical space
  • an energy or emissions system and its components.

Emissions-reducing activities are:

  • replacing or modifying boilers, heating, ventilation and air conditioning systems
  • improving control systems and processes
  • capturing or re-using waste heat
  • replacing low-efficiency motors, fans, and pumps with high-efficiency versions
  • installing variable speed drives to target the output of motors closely
  • improving compressed air processes
  • changing chemical manufacturing processes to reduce emissions
  • installing electricity-generating equipment to service electricity-consuming equipment that would otherwise use grid electricity, or to provide off-grid electricity
  • switching fuel or feedstock.

You can add new activities to your project after it’s registered by providing an updated statement of activity intent.

New activities identify new opportunities to claim ACCUs. Your updated statement may apply to new activities at the site already included in the project or apply to new implementations at a different site.

Relevant legislation
  • Section 12 of the method
  • Section 41 of the method
  • Section 42 of the method

You must consult or work with statistical regression or engineering-based modelling techniques when developing emission models, due to strict requirements.

Project activities can fail to meet statistical requirements even if activities reduce emissions.

Other specialist skills required include:

  • accredited engineering professional
  • accredited statistician
  • measurement and verification professional
  • certified energy manager
Relevant legislation
  • Section 13(f) of the rule
  • Part 3 division 6 of the method

7 years from your project’s start date.

You can defer the start of your project's crediting period for up to 3 years after registration.

Relevant legislation
  • Part 5 of the Act
  • Section 66D of the rule

Abatement is calculated by adding the abatement generated by each implementation. The baseline emissions and measured operating emissions are compared to determine the abatement for each implementation.

You must develop a baseline emissions model. This estimates baseline emissions in an implementation for each reporting period.

Baseline emissions models may be:

  • a regression baseline emissions model developed using statistical regression analysis
  • an engineering baseline emissions model developed using engineering-based modelling techniques.

Baseline emissions models must be developed using values of emissions and model variables measured during a baseline measurement period that you choose.

Baseline emissions models must meet the minimum statistical requirements of the method. Your baseline emissions models must meet this requirement.

Measured operating emissions that occur after implementation are compared with the estimated baseline emissions that would be produced if your implementation hadn’t occurred.

If you’re using an engineering baseline emissions model, you must also provide a declaration from a suitably qualified and independent professional that the model meets the requirements of the method.

When calculating abatement, you must account for any interactive effects. An interactive effect is a change in emissions occurring from implementation activities outside the modelling boundaries for the implementation.

Relevant legislation
  • Part 3, division 6 of the method
  • Part 4 of the method

You must meet the general monitoring requirements of the Act.

If you can't monitor relevant data, you can make an estimate based on relevant and timely data. You must take steps to reduce the amount of time an estimate is used.

Relevant legislation
  • Part 17 of the Act
  • Part 5 division 3 of the method

You must keep records of:

  • technical specifications of equipment modified or installed as part of the implementation
  • completion of the implementation activities that constitute the implementation
  • reuse or disposal records of any implementation equipment
  • any declarations made by an independent measurement and verification professional.

You must also meet the general record-keeping requirements of the Act and the rule.

Relevant legislation
  • Part 17 of the Act
  • Part 17 of the rule
  • Part 5 division 2 of the method

You must report:

  • details of project completion
  • details of the boundary for project implementation
  • the interactive effects for project implementation
  • fuel and electricity consumption that's been excluded.

Additional information is only required if it’s new or different from information already provided in either the project application or a previous offsets report.

Your abatement reporting must be consistent.

You cannot remove implementations from abatement calculations in reporting periods where they return negative abatement and reinstall those implementations in reporting periods where they return positive abatement.

If an implementation is removed for a reporting period, it must continue to be removed for all future reporting periods.

You must also meet the general reporting requirements of the Act and the rule.

Relevant legislation
  • Part 6 of the Act
  • Part 6 of the rule
  • Part 4 division 2 of the method
  • Part 5 division 1 of the method

We provide you with an audit schedule when your project is declared.

You must provide audit reports according to this schedule.

We schedule at least 3 audits. Extra audits can be triggered.

For more information on audit requirements, refer to our audit information.

Relevant legislation
  • Part 19 of the Act
  • Part 6 division 3 of the rule