On 9 September 2025, the International Organization for Standarization (ISO) and Greenhouse Gas Protocol (GHG Protocol) announced that they will combine their leading GHG standards into harmonised co-branded international standards.
Why does this matter to Australian agricultural producers?
Under the Corporations Act 2001, large businesses and financial institutions in Australia are required to disclose the climate-related risks and opportunities - that can reasonably be expected to affect the entity’s prospects - for annual reporting periods beginning on or after 1 January 2025.
This currently includes the requirement to measure and disclose the greenhouse gas emissions generated as part of the business’ own activities (Scope 1), the emissions generated from electricity purchased by the business (Scope 2) and from January 2026 the emissions generated in a business’ up- and downstream value chains (Scope 3).
As a result, a manufacturer required to report Scope 3 emissions, might start asking about the amount of greenhouse gas emissions embedded in the milk, grain, meat or vegetables and other agricultural produce they purchase, or a bank or investment company may need to know what an agricultural business is doing to reduce their emissions before they invest in them.
Therefore, smaller agricultural businesses who are not required to report emissions themselves, may still need to know the amount of greenhouse gases emitted as a result of their farming activities to provide this information to their buyers or financiers.
While there are multiple protocols to measure the amount of greenhouse gases generated through various business processes - particularly in agriculture - Australian entities are required to use the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004), unless required to use a different method by a different jurisdiction or exchange.
For this reason, it is particularly good news that the Greenhouse Gas Protocol and ISO have announced that they will harmonise their existing greenhouse gas standards and co-develop a new, co-branded international standard for GHG emissions accounting and reporting.
This is expected to streamline emissions reporting, reduce confusion and duplication and strengthen market confidence.
The Australian Federal Government is also striving to improve consistency of on-farm emissions estimations and has invested $6.4 million to task Agricultural Innovation Australia in partnership with the Zero Net Emissions from Agriculture Cooperative Research Centre to incorporate voluntary greenhouse gas emissions estimates and reporting standards into GHG calculators and accounting tools.
This will ensure that the different emissions calculators, such as the Greenhouse Accounting Frameworks (GAF) for Australian Primary Industries, will be updated in line with the latest science across free and commercial agricultural farm management and accounting platforms.
While international standardisation and streamlining will make reporting easier, it is important to also allow for increased granularity so that the emissions factors used in the calculations are appropriate for different contexts and production systems rather than based on industry averages or secondary datasets (so-called Tier 1 emissions factors) which could disadvantage Australian producers.
Sources:
Improving Consistency of On-farm Emissions Estimates Program - DAFF
https://www.piccc.org.au/resources/Tools
https://ghgprotocol.org/calculation-tools-and-guidance
An Australian Carbon Credit Unit (ACCU) represents one tonne of carbon dioxide equivalent (tCO₂-e) avoided or removed from the atmosphere. It is issued under the Emissions Reduction Fund (ERF), which is administered by the Clean Energy Regulator.
In Australia, you can use a carbon credit (Australian Carbon Credit Unit - ACCU) in several ways, depending on whether you are a business, investor, or landholder.
This will be dependant on the methodology of your project.
No
being under freehold will be easier, however carbon projects are still achieveable under leasehold land.
Entities or individuals with a financial or managerial interest in the property may include, but are not limited to, financial institutions (e.g., banks), holders of native title claims, and relevant government authorities such as the Crown Land Minister.
No, you are not required to include your entire property in the project. You may select specific eligible areas of your property to participate as per your preference.
Soil tests that identify carbon may not necessarily be suitable for establishing your baseline, as they measure a different type of carbon than what is required for emissions accounting or carbon projects. It is important to ensure that the methodology aligns with the specific requirements of the program or framework you are working within.
The cost of establishing a soil carbon project varies depending on the size of the project and the number of soil samples required. Larger projects and those requiring more extensive sampling will typically incur higher costs. It is recommended to consult with a specialist to determine the specific costs based on your property and project requirements.
The cost of establishing a vegetation carbon project varies depending on the chosen Carbon Service Provider (CSP), the division of responsibilities for project implementation, and the party assuming the associated risks.
As of March 26, 2025, the spot price for Australian Carbon Credit Units (ACCUs) was A$32.50
No, you are not required to completely destock under a tree carbon project. However, you must reduce your stocking rate to align with project requirements. You may choose to fully destock, but this is not mandatory.
Soil carbon at 30cm is typically more abundant, labile, and influenced by biological activity, supporting plant growth and nutrient cycling. At 1m depth, carbon is less abundant, more stable, and stored in a less accessible form, contributing to long-term carbon sequestration and soil health. Both depths play a role in soil fertility and climate change mitigation, but the deeper carbon is more resilient and less impacted by surface disturbances.
Scope 3 emissions are indirect greenhouse gas emissions from a company’s entire value chain, both upstream (e.g., supply chain, employee travel) and downstream (e.g., product use, disposal). These emissions, though not directly controlled by the company, often make up the largest portion of its carbon footprint.
For farms, Scope 3 emissions include the production and transportation of inputs such as feed, fertilizers, and machinery, as well as the transportation, processing, and disposal of farm products. These emissions extend beyond farm operations, impacting the broader agricultural supply chain.
Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling used on the farm (e.g., for irrigation, cooling systems, lighting).
Scope 1 emissions are direct greenhouse gas emissions from sources owned or controlled by a company. In farming, these include:
These emissions are produced directly on the farm and are the most controllable within farm operations.