The Australian government has introduced new legislation to Parliament aimed at strengthening the integrity, governance, and transparency of the nation’s carbon crediting scheme, ensuring it continues to drive down emissions while delivering vital economic opportunities to regional and rural communities.
The proposed bill amends the Carbon Credits (Carbon Farming Initiative) Act 2011, drawing on more than a decade of operational insights. Alongside structural improvements to streamline the Australian Carbon Credit Unit (ACCU) Scheme, the legislation enhances the recognition of First Nations rights and interests, ensuring local traditional owners benefit directly from land management initiatives.
Assistant Minister for Climate Change and Energy Josh Wilson said the legislative reforms are designed to provide long-term certainty for investors, industry, and landholders.
“These reforms build on a strong foundation to put continued downward pressure on Australia’s emissions so we can meet our climate goals while supporting new economic opportunities for Australian industries and communities,” Wilson said.
The reforms follow multiple independent reviews that confirmed the ACCU Scheme remains a robust vehicle for climate action.
Since its inception in 2011, the scheme has generated over 190 million tonnes of abatement across 2,631 registered projects, representing a total value exceeding AU$4 billion.
Beyond land restoration and carbon sequestration, the scheme is delivering substantial regional benefits. Notably, updated Savanna Fire Management methods rolled out earlier this year are projected to inject AU$7.7 billion into Northern Australia, with First Nations-led enterprises accounting for 75 per cent of savanna fire management businesses.
In addition to ACCU reforms, the bill updates the National Greenhouse and Energy Reporting (NGER) Scheme to improve corporate emissions reporting transparency. It also includes minor timetable adjustments to facilitate the smooth implementation of the New Vehicle Efficiency Standard (NVES).
“Integrity is the foundation stone of the ACCU Scheme. We have made continuous improvements to strengthen the integrity, transparency, governance and administration of the Scheme to ensure strong participation, real community benefits and ongoing cuts to Australia’s emissions.,” Wilson said.
Through these updates, the government aims to ensure Australia’s carbon framework keeps pace with a dynamic global market while continuing to restore local ecosystems.