Australian Carbon Credit Unit (ACCU) Scheme

Purpose and Program Overview

The Australian Carbon Credit Unit (ACCU) Scheme incentivises individuals, businesses and organisations to undertake projects that reduce or avoid greenhouse gas emissions, or remove and sequester carbon from the atmosphere. One ACCU is issued for every tonne of carbon dioxide equivalent (tCO₂-e) stored or avoided. Participants can sell ACCUs on the secondary market to private buyers or to the Australian Government under carbon abatement contracts, generating an additional income stream.

The scheme supports Australia’s emissions reduction targets by delivering real, additional and measurable abatement. It operates under the Carbon Credits (Carbon Farming Initiative) Act 2011 and is administered by the Clean Energy Regulator, with policy oversight by the Department of Climate Change, Energy, the Environment and Water. Projects cover vegetation management, agriculture, forestry, energy efficiency, waste, transport and industrial processes. The scheme forms a core part of Australia’s carbon market and complements the Safeguard Mechanism.

There is no fixed total funding pool allocated as direct grants to applicants. Instead, the scheme issues tradable ACCUs whose value is determined by market prices or government contract prices. The Australian Government continues to purchase ACCUs through carbon abatement contracts, including via the Powering the Regions Fund.

Key Grant Details

• Grant amount or funding range: Participants earn ACCUs (one per tCO₂-e abated). Value is market-determined or set under government carbon abatement contracts. No fixed cash grant amount per project.
• Application open and close dates: Open continuously; applications accepted at any time.
• Eligible industries or business types: Individuals, sole traders, companies, local/state/territory government bodies and trusts. Suitable for industry, business, landholders, farmers and First Nations peoples.
• Required co-contributions: None specified as a fixed percentage; participants fund project establishment and ongoing costs and recover value through ACCU sales.
• Location/state/territory applicability: National (projects must be undertaken in Australia).

Priority Sectors

The scheme is open to a broad range of sectors. Eligible project types include vegetation management, agriculture, forestry, energy consumption, waste, transport, coal and gas production, and industrial processes. Specific methods cover activities such as reforestation, soil carbon, savanna fire management, energy efficiency upgrades and landfill gas capture.

Funding Scope

• Minimum and maximum amounts per stream: Not applicable; abatement volume determines the number of ACCUs issued.
• Categories or streams: Emissions avoidance projects and sequestration projects, each governed by approved methodology determinations (methods).
• Project timeline or eligible funding duration: Crediting periods vary by method (commonly up to 25 years for many sequestration projects). Sequestration projects carry permanence obligations of 25 or 100 years. Reporting is required at least every 2 years (emissions avoidance) or 5 years (sequestration).

Eligibility Criteria

• Project must be new (activities must not have already started).
• Project must go beyond business-as-usual activities.
• Project must not be required by law (regulatory additionality).
• Project must not receive financial support from specified government programs.
• Project must not be an excluded activity under the Carbon Credits (Carbon Farming Initiative) Rule 2015.
• Project must follow an approved ACCU Scheme method.
• Proponent must have the legal right to carry out the project activities and the exclusive legal right to be issued all ACCUs from the project.
• Proponent must pass a fit and proper person assessment.
• Participation is open to individuals, sole traders, companies, local, state and territory government bodies and trusts.

Eligible Activities and Expenses

Eligible activities are defined by approved methods and include:

• Vegetation management (reforestation, afforestation, human-induced regeneration, environmental or mallee plantings).
• Agricultural practices (soil carbon, animal effluent management, herd management).
• Energy efficiency improvements and industrial/commercial emissions reduction.
• Landfill gas collection and combustion, waste reduction.
• Savanna fire management.
• Other method-specific activities such as plantation forestry or carbon capture and storage where approved.

The scheme does not provide direct reimbursement for capital equipment, staff or R&D; participants incur project costs and receive ACCUs for verified abatement.

Assessment Process

The scheme is entitlement-based once eligibility and method requirements are met, rather than a competitive ranking process. The Clean Energy Regulator assesses applications to confirm:

• Identity of the proponent.
• Project meets scheme eligibility criteria.
• Project meets the requirements of the relevant method.
• Fit and proper person status. Ongoing compliance is monitored through project reporting and scheduled audits. ACCUs are issued only after verified reporting.

Recent Program Updates

The Climate Change Authority released its fifth review of the ACCU Scheme in 2026. The review examined the scheme’s calibration in light of Australia’s 2035 emissions targets, the shift in ACCU demand toward Safeguard Mechanism entities, and international offset arrangements under the Paris Agreement. It found the scheme fundamentally sound while recommending evolutionary changes to support Australia’s climate goals. Legislative amendments addressing integrity and transparency have progressed, and method development and reforms continue. ACCU issuance remained strong through 2025–2026.

Application Tips

• Confirm the project meets all general eligibility requirements and the specific rules of the chosen method before applying.
• Complete a cost–benefit analysis, assess technical capability and understand permanence, reporting and audit obligations.
• Prepare documentation demonstrating legal right, additionality and method compliance.
• Align the project with an approved method and ensure accurate abatement estimation and record-keeping systems are in place.
• Consider engaging a carbon service provider if additional expertise is required for project design, registration or management.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of the Australian Carbon Credit Unit (ACCU) Scheme and other associated Australian government websites (cer.gov.au, dcceew.gov.au and business.gov.au).