Australian Carbon Market And Safeguard Mechanism Reform

A recently published independent review of Australia's carbon credit units (ACCU) scheme, commissioned by the Australian government, has found that the ACCU scheme is "essentially sound," but provides 16 recommendations to avoid potential conflicts of interest and enhance transparency. The ACCU scheme, introduced 11 years ago, was developed by the Australian government to "remove greenhouse gases from the atmosphere, or to prevent their emission." The scheme "supports carbon farming initiatives leading to the allocation of one ACCU for each ton[] of carbon abatement." The review explains that the ACCU scheme "also allows some ACCUs to be purchased by the Australian Government, some by emitters to offset a proportion of their continuing emissions, or traded on the domestic market."