Submission opportunity available for ACCU Scheme method proposals
In a recent communication, the Chair of the Clean Energy Regulator (CER) has signaled an expected rise in demand for Australian Carbon Credit Units (ACCUs) and Safeguard Mechanism Credits (SMCs), with the market potentially tightening as a result.
The CER has announced that it will maintain a reserve of ACCUs, available for purchase by Safeguard entities at an initial fixed price of $75 per unit. However, it is currently only holding 1.9 million ACCUs in this reserve.
As for the development and modification of methods for Australian Carbon Credit Units, the name of the individual coordinating these efforts under the official ACCU scheme by the Emissions Reduction Assurance Committee remains unavailable.
The CER has also revealed that several ACCU methods are due to sunset within the next 18 months. These include popular methods such as the "Reforestation by Environmental or Mallee Plantings" method, which is set to expire by the end of the year.
In response to the sunset of the "Reforestation by Environmental or Mallee Plantings" method, the government has committed to re-making the method to ensure that environmental plantings projects can continue to be registered.
The increased demand for ACCUs is expected to grow as the Safeguard Mechanism transitions into a compliance scheme, requiring entities to collectively reduce their emissions by 200 million tonnes of CO2-e by 2030.
Unfortunately, the development of the Integrated Farm and Land Management method (IFLM Method) has reportedly been paused due to challenges in demonstrating some of the method's environmental benefits.
A comprehensive table listing all current ACCU methods, with those due to sunset within the next 18 months highlighted in light red, has been provided by the CER.
As the sunset of several ACCU methods approaches, entities are encouraged to review their carbon abatement strategies and prepare for potential changes in the market.
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