Projects under this method can earn Australian carbon credit units (ACCUs) for reducing emissions from land and sea transport services. This is done by:

  • switching fuel

  • using energy efficient transport practices.

When to use this method

The land and sea transport method may be suitable for your business if you can reduce your emissions by:

  • replacing vehicles
  • modifying existing vehicles
  • changing the energy source or the mix of energy sources used by vehicles
  • improving operational practices in relation to vehicles.


Vehicles and vessels

Your project vehicles or vessels must use:

  • taxable fuel
  • fuels that have emissions factors calculated with the NGER Measurement Determination.

To be eligible, you must have 3 years of historical vehicle data with:

  • amount of fuel consumed
  • distances travelled
  • tonnage.

This ensures baseline data for calculating abatement reflects the recent performance of the vehicles.

You may not need historical fuel use data if your project relates to light vehicles, such as cars and utes, and it isn’t possible for you to collect this data (for example for hire car companies).

There are exceptions for projects by a rental car or fleet lease company that replace a light vehicle fleet. It may not be possible to monitor fuel use data due to a genuine physical or practical limitation of your business model.

In this case the baseline may be set using the Australian Government’s Green Vehicle Guide.

You must also meet general eligibility requirements for the Australian Carbon Credit Unit (ACCU) Scheme.

Relevant legislation:

  • Part 3 of the Act
  • 10, 12, 15 and 28 of the method
  • Part 3 or 4 of Schedule 1 of the NGER Measurement Determination


Projects under this method only cover vehicles and vessels that use taxable fuel.

International usage, such as export shipping, is excluded. Air transport is also excluded because it’s covered in the aviation method.

This method doesn’t allow projects that switch the vehicle category or change transport mode, unless the switch complies with the requirements of the aggregated individual vehicles activity.

Relevant legislation:

  • Section 9 of the method
  • Section 11 of the method
  • Section 14 of the method
  • Part 3 or 4 of Schedule 1 of the NGER Measurement Determination

Method requirements

Project activities must specifically aim to reduce the emissions intensity of chosen vehicles. It can’t aim to reduce emissions from vehicles generally. For example, an activity can’t design a mobile phone app that allows users to run their vehicles more efficiently.

Examples of activities that can be undertaken are:

  • increasing biofuel use
  • installing low rolling resistance tyres
  • replacing vehicles with more efficient alternatives, such as switching trucks to light trucks
  • optimising vehicle schedules.

A project must be classified as either:

  • group of vehicles project
  • aggregated vehicles project.

These project types provide flexibility for different transport businesses.

These projects have different rules for what types of vehicles can be included and how to calculate abatement.

Group of vehicles project

A group of vehicles project suits businesses that don’t collect data at the level of individual vehicles, such as public or hire fleets and logistics companies. These projects can include:

  • light vehicles
  • trucks
  • buses
  • trains
  • marine vessels.

It can’t include mobile equipment.

Mobile equipment is off-road self-propelled machinery not covered by another vehicle category. Some examples are mining and agricultural vehicles.

In a group of vehicles project, the emissions reduction activities must be applied to all vehicles in a sub-group. A sub-group contains all vehicles of the same vehicle category within a business unit or transport operation.

Aggregated individual vehicles

An aggregated individual vehicles project suits businesses that have vehicle-specific data, such as railways, shipping and trucking operations.

These projects can include:

  • trucks
  • buses
  • trains
  • marine vessels
  • mobile equipment.

It doesn’t include light vehicles.

In an aggregated individual vehicles project, emissions reduction activities don’t need to apply to all the vehicles within a vehicle category.

This means that you can choose which vehicles within each category and business units participate in the project. However, the duty cycle of the vehicle must remain substantially the same.

You may be able to undertake transport mode switching in an aggregated individual vehicle project.

Transport mode switching is the change between vehicle categories, such as between rigid trucks and rail freight.

This project type is only possible if you conduct operations across both vehicle categories, providing that the duty cycle of the replacement vehicle is the same as the replaced vehicle.

Mode switching projects aren't likely to create abatement. For mode switching projects to create abatement, the emissions intensity within vehicle categories must be improved. This is unlikely to occur under the current method.

Relevant legislation
  • Section 5 of the method
  • Part 2 of the method
  • Part 3 of the method

Specialist skills may be needed to carry out projects under this method. These specialist skills may be:

  • registered professional engineer
  • certified energy manager
  • certified measurement and verification professional.
Relevant legislation
  • Section 13(f) of the rule
  • Par​t 5 of the method

7 years.

Relevant legislation
  • Part 5 of the Act

Abatement is calculated by comparing emissions in a project’s reporting period with baseline emissions.

To calculate your baseline emissions, you need to determine the emissions intensity for each sub-group of vehicles or individual vehicle in the 3 years before running the project.

Emissions intensity is the emissions produced per service unit.

A service unit is a unit of measure for the services performed by vehicles and the allowable service units. They depend on the vehicle category and your type of project.

Examples of service units are:

  • kilometres (km)
  • tonne kilometres (tkm)
  • passenger kilometres (pkm).

The exception to this process is light vehicles where refuelling is conducted by a third party. In these cases, fuel data can’t be monitored in light vehicles due to refuelling being conducted by a third party. This is also the case with most hire car and fleet lease companies.

In these cases, emissions intensity can be set using the Australian Government’s Green Vehicle Guide.

Relevant legislation
  • Part 4 of the method
  • Section 28 of the method
  • Schedule 1 of the method

You must monitor the service unit and energy consumption data that needs to be collected and monitored for either:

  • each sub-group if it’s a group of vehicles project
  • an individual vehicle if it’s an aggregated individual vehicles project.

The method includes several options for collecting data, including approaches used in various transportation industries to collect data for other purposes.

You must estimate value if unable to monitor any of the specified parameters during a reporting period.

You must remember to also meet the general monitoring requirements of the Act.

Relevant legislation
  • Part 17 of the Act
  • Sections 33 and 34 of the method

You must keep records of:

  • descriptions of vehicles
  • any project activities performed on the vehicles
  • changes to operational practices
  • composition of and changes to groups and sub-groups, if it’s a group of vehicles project
  • replacement of vehicles, if it’s aggregated individual vehicles project
  • whether any vehicles or equipment used to help power or operate project vehicles were installed or operating as part of the project.

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

Relevant legislation
  • Part 17 of the Act
  • Part 17 of the rule
  • Section 31 of the method

You must report if your project uses the Green Vehicle Guide for calculating abatement. The Green Vehicle Guide is used to find and compare environmental performance and fuel consumption of vehicles.

If using the Green Vehicle Guide, you must report:

  • vehicle make, model and fuel type
  • details of replacement vehicles, if any.

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

Relevant legislation
  • Part 6 of the Act
  • Part 6 of the rule
  • Section 28 of the method

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

You must provide audit reports according to this schedule.

We schedule at least 3 audits and additional audits can be triggered.

You can refer to our audit information to find out more.

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

Documents and resources