Independent Review of Australian Carbon Credit Units

Purpose of the Independent Review

The government appointed an independent panel to review the integrity of Australian Carbon Credit Units (ACCUs) under Australia’s carbon crediting scheme, also known as the Emissions Reduction Fund.

The independent panel was comprised of Professor Ian Chubb AC (Chair), the Hon Dr Annabelle Bennett AC SC, Ms Ariadne Gorring and Dr Steve Hatfield-Dodds.

The purpose of the Review was to ensure ACCUs and the carbon crediting framework maintain a strong and credible reputation supported by participants, purchasers and the broader community.

The Panel examined governance arrangements and legislative requirements of the carbon crediting scheme, as well as the integrity of the key methods used, and other scheme settings affecting the integrity of ACCUs. It considered the broader impacts of carbon projects, including for agriculture, biodiversity, participation of First Nations people, and regional communities. The Panel also examined the requirements for use of ACCUs under Climate Active.

Independent Panel’s conclusions

The Panel concluded that the ACCU scheme arrangements are essentially sound, incorporating mechanisms for regular review and improvement, and recommended several changes to clarify governance, improve transparency, facilitate positive project outcomes and co-benefits, and enhance confidence in the integrity and effectiveness of the scheme.

Government response and implementation of reforms

The Australian Government accepted all 16 recommendations of the Independent Review in principle and published an Implementation Plan setting out its planned timing and approach to implementing reforms.

Implementation is well underway. You can read about the government’s progress in implementing reforms.

Independent Panel consultation and advice

The Panel consulted widely during the review. The consultation paper and public submissions are available on our consultation hub.

The Panel also sought independent analysis and advice to inform its consideration of the integrity of the human induced regeneration, avoided deforestation, landfill gas, and carbon capture and storage methods. It commissioned the Australian Academy of Science to provide a rapid assessment of these methods.

The report, along with public submissions and stakeholder meetings, were key contributions to the Panel’s considerations.