What’s in the future for carbon trade policy?

Written By Louisa Kiely

Farming under the ACCU scheme: what now, what next?

Australia’s carbon market is evolving fast. The Emissions Reduction Fund (ERF), originally launched in 2014, helped kick-start farmer participation in carbon trading. Today, it’s known as the ACCU Scheme — short for Australian Carbon Credit Unit Scheme — and the opportunities are growing.

💼 Government-Backed Contracts Still Exist — But They’ve Changed

While the original ERF reverse auctions awarded long-term contracts backed by $2.55 billion in public funding, most new demand is now driven by the private sector — not government auctions.

Government contracts still exist through Carbon Abatement Contracts, but:

  • They are increasingly rare

  • The ACCU Scheme has become more dynamic

  • More buyers are entering the secondary market

🔁 The Rise of the Secondary Market

Today, landholders who generate ACCUs can sell them outside of government auctions — often at competitive prices — to:

  • Businesses voluntarily offsetting their footprint

  • Companies complying with the Safeguard Mechanism

  • Investors and carbon project developers

📈 This “secondary market” is where real momentum is building.

It allows for more flexibility, and more players — but also requires a clear understanding of project viability, credit delivery, and market trends.

🔍 So What’s Next for Carbon Trade Policy?

The Albanese Government has shown strong support for scaling up carbon markets and improving the ACCU framework. Key policy moves include:

  • Ongoing updates to methods (like soil carbon, savanna fire, and blue carbon)

  • Strengthening integrity and transparency through reforms to the Clean Energy Regulator

  • Encouraging greater private sector participation in both offsets and co-investment

Still, many landholders remain unsure about where to start — or whether it’s worth it.

🚜 How CMS Can Help

You don’t need to navigate this alone. At Carbon Management Services, we bring decades of experience to help you:

  • Understand the market and where you might fit

  • Evaluate project opportunities across soil, vegetation, livestock, and emissions reduction

  • Determine if now is the right time to participate — or prepare for the future

  • Avoid hidden risks and match your goals to the right method

📋 We offer a no-obligation Whole of Farm Carbon Assessment to help landholders understand their options.

⚠️ Don’t Wait for Policy to Catch Up

Australia has committed to net zero — and the demand for carbon credits is expected to grow. If domestic credits aren’t available, government and business may be forced to buy overseas, and local farmers could miss out.

We believe the value should stay onshore — and landholders should be part of the solution.

Louisa Kiely