Responsible emitters of safeguard facilities that exceed their baseline may be eligible to purchase Australian carbon credit units (ACCUs) from us at a fixed price.
This cost containment measure was introduced in 2023–24 with an ACCU price of $75. The price is indexed each financial year to the consumer price index plus 2%.
ACCUs are generally available on the secondary market for less than the cost containment price, including through brokers and intermediaries. The measure gives responsible emitters certainty about their maximum compliance costs when ACCU market prices are higher than the cost containment price.
Learn more about carbon markets and ACCU prices in our Quarterly Carbon Market Reports.
ACCUs delivered under carbon abatement contracts are allocated to the cost containment measure reserve. You can find the number of ACCUs held in the cost containment account on the project and contract register.
Eligibility
Only responsible emitters of safeguard facilities that exceed their baseline can buy ACCUs under the measure. The ACCUs must be immediately surrendered to eliminate the facility's excess emissions position. They can't be traded or held for future use.
Responsible emitters can apply to buy ACCUs under the measure from mid-February to early March. We will communicate the specific timing of the window each year.
We publish details of any ACCUs bought under the measure.
Contracting principles
Excess emissions position is prevented
We will only supply cost containment ACCUs to responsible entities of safeguard facilities for the purpose of reducing their facility's net emissions below or to its baseline. We must be satisfied that this requirement will be met.
Find out how to surrender ACCUS.
Lower ACCU prices are unavailable
Responsible emitters that want to buy ACCUs under the measure must confirm they can't buy ACCUs from the market for less than the cost containment price. The measure is not intended to operate where ACCUs are available at a lower price in the market.
Good faith
We will act in good faith in accordance with the law and our contracting principles during the contract process.
Responses and engagement
We will deal with all buyer enquiries efficiently and effectively. We will provide accurate information but not advice.
We will operate the trading window according to our specified timelines.
Fair and proportionate action
We will exercise our discretion fairly. Our decisions will be proportionate and will consider the specific facts of each situation.