Plan your project

Participating in the Australian Carbon Credit Unit (ACCU) Scheme is an important business decision.

Before applying, make sure you plan your project and consider:

• who will own and manage the project
• the type, scale and location of a project
• the timeline of a project
• potential of the project to generate benefits and income
• investment costs
• the crediting strategy (how frequently you want to and are able to receive ACCUs)
• audit and reporting costs.

Check the project is viable

You should conduct a feasibility assessment to confirm an ACCU Scheme project is right for you. Consider:

• if there's a method for your project idea
• technology options, quality assurance requirements and warranties
• eligible interest-holder consent requirements
• any state and territory regulatory approvals needed for your project
• record keeping and monitoring systems you need
• expected costs to implement and maintain the project
• budget for audit costs and other requirements
• what equipment you will need to install or species to plant
• availability of qualified or experienced personnel
• estimated carbon abatement and certainty of estimates
• if there are other project benefits
• any expected risks.

Do a cost-benefit analysis

Before you apply to run a project, you need to understand how much money you might make from it. This varies depending on many factors. 

Projects usually require an upfront investment as well as ongoing expenses. Upfront costs might include:

• purchasing technology
• preparing land for planting
• hiring carbon service providers to give advice or help run your project.

Other costs associated with running a project include:

• preparing an offsets report, for example, if you engage a consultant to assist with sampling or modelling
• engaging an auditor to prepare an audit report. At least 3 audits are required over the crediting period and the first audit report is due with your initial offsets report. 

You should add up your project costs to help you decide what price you want for your ACCUs when you sell them.

You should also consider return on investment for land based projects.

Understand the method

The types of projects or activities eligible under the ACCU Scheme are determined by methods. Your project must use methods approved by the Australian Government, which set out the rules for running the project and calculating emissions reductions.

Make sure you understand the eligibility, reporting and auditing requirements for your method. Find out more about ACCU Scheme methods.

For information about carbon farming, visit the Department of Climate Change, Energy, the Environment and Water's Carbon Farming Outreach Program training package. The department has prepared this resource to help farmers and land managers make decisions about reducing greenhouse gas emissions and storing carbon.

Assess technological requirements

Consider if you need specific technology or equipment to set up and manage your project. This might include:

• methane gas capture equipment
• metering equipment
• biomass surveys.

Comply with relevant legislation

Make sure you understand any laws or regulations that apply to your project in addition to the method. This includes work health and safety laws, and any approvals, permits or permissions needed to run your project.

Know the crediting, reporting and permanence periods

A crediting period is how long a project can generate ACCUs, which varies depending on project type and method. The crediting period is generally 7 years for emissions avoidance projects and 25 years for sequestration projects.

A reporting period is the timeframe covered by an offsets report regarding the activities of the project. ACCUs can only be issued to a project once a report is received and assessed. You must report at least every 2 years for an emissions avoidance project and 5 years for a sequestration project.

A permanence period is the time you must maintain the level of carbon stored by a sequestration project. It begins when the project is first issued ACCUs. You can elect either a 25-year or 100-year permanence period when applying to register a project.

See ACCU Scheme project timelines for more information on key dates and timeframes involved in an ACCU project.

Get help from a carbon service provider

Running an ACCU project can be complex. Carbon service providers enter commercial agreements with landholders or landowners who grant them legal right to carry out the project and receive ACCUs. These agreements include obligations on each party to run the project and how proceeds from ACCUs issued for the project are distributed.

These service providers can help you understand your obligations and risks to help you participate:

• legal services
• financial advisory services
• agents
• aggregators.

You can find carbon service providers by searching online or on the Carbon Market Institute's directory.

Find out more about working with carbon service providers.

Prepare your application

Before applying, make sure you have all the information and documentation you need. This includes:

1. checking your project meets eligibility requirements
2. choosing a project proponent
3. making sure you have the legal right to carry out the project
4. choosing a project type and method
5. obtaining eligible interest holder consents
6. calculating your forward abatement estimate.