Announcement date
9/01/2023
Link to announcement
https://www.dcceew.gov.au/about/news/australian-governments-response-independent-review-accu
Problem being addressed
In July 2022 the government appointed an independent panel, led by former Chief Scientist Professor Ian Chubb to conduct a review to ensure that the Australian Carbon Credit Units (ACCU) and the carbon crediting framework maintain a strong and credible reputation supported by participants, purchasers and the broader community.
Proposal
On 9 January 2023 Minister Bowen released the Australian Government response to the Independent Review of Australian Carbon Credit Units (also known as the Chubb Review), which concluded that the ACCU scheme arrangements are essentially sound, incorporating mechanisms for regular review and improvement. It found that after 11 years of operation there is room for further improvement.
The Government has agreed in principle to the 16 recommendations, which include a range of proposals to improve the operation of the scheme, including for the accreditation and regulation of carbon service providers and carbon market advisors.
Assessed Impact Analysis outcome
Consistent with the Government’s Impact Analysis requirements, the Department of Climate Change, Energy, the Environment, and Water (DCCEEW) certified the Chubb Review as meeting the requirements of an Impact Analysis (IA).
Assessment comments
The Office of Impact Analysis (OIA) does not assess the quality of independent reviews, but does assess relevance. The OIA assessed that the options analysed in the certified report are sufficiently relevant to the Government’s proposed activities.
Regulatory burden
DCCEEW notes that there will be no change to regulatory costs associated with the government response to the Review, however regulatory impacts are expected when these reforms are implemented.
The full range of impacts to the Australian community will be measured as part of detailed design of the reforms proposed in the recommendations. Estimates of these impacts will be prepared by DCCEEW and published by the OIA following implementation.
Addendum (March 2025)
In December 2023, the Climate Change Authority (CCA) released its 2023 Review of the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act) which establishes the ACCU Scheme. The CFI Act requires the Climate Change Authority to conduct a review of the Act every 3 years.
The Government published its response to the 2023 review in August 2024. The Authority made 15 recommendations to further enhance the Scheme. The response agreed to 3 recommendations and agreed in principle to 12 recommendations.
Aspects of 12 of the 15 recommendations align strongly with the recommendations of the Chubb Review. Decisions on these recommendations have been covered by DCCEEW’s January 2023 certification of the Chubb Review as an Impact Analysis Equivalent.
Reforms to the ACCU Scheme are being implemented in stages to implement the agreed recommendations from both the January 2023 Chubb Review and the December 2023 CCA Review.
- Stage 1 was implemented prior to the release of the CCA Review.
- Stage 2 is underway and includes work to establish the Carbon Abatement Integrity Committee, increase scheme transparency, improve processes for seeking consent from Native Title bodies and introduce a proponent-led method development process. Public consultation on Stage 2 Chubb Review reforms took place from August to October 2023. Implementation of the CCA’s recommendations that align with these reforms are being progressed concurrently.
- Stage 3 will consider options to accredit and regulate carbon service providers and agents, build capacity and support participation from rural and remote communities, including First Nations people, and further transparency measures and recognition of co-benefits. The CCA’s recommendations that align with these reforms will be considered under Stage 3.
Implementation of the remaining 3 recommendations outside of the Chubb Review will be considered as part of ongoing improvements to the ACCU Scheme. DCCEEW will continue to work with the OIA in assessing potential impacts from implementation of the Scheme.