DPI provided a technical submission to assist the Commonwealth improve method integrity, maintain carbon market confidence and to reduce the risk of over crediting of Australian Carbon Credit Units (ACCUs).
The Australian Carbon Credits (Carbon Farming Initiative- Estimation of Soil Organic Carbon Sequestration using Measurement and Models) Methodology Determination 2021 (Soil Organic Carbon Method 2021)," is currently under review by the Emissions Reduction Assurance Committee (ERAC) to ensure it meets the scheme's offset integrity standards.
The 2025 periodic review aims to strengthen the method's scientific rigour in response to widespread scientific criticism and publication of peer reviewed journal articles identifying flaws and risks with the current approach. Submissions closed on 11 April 2025.
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.