ACCU’s are Australian Carbon Credit Units, they equate to 1 tonne of Co2 avoided or sequested and are issued by the Clean Energy Regulator for projects approved under the Emissions Reduction Fund.

The Emissions Reduction Fund is a fund managed by the Clean Energy Regulator. It aims to help reduce Australia emissions by providing incentives for business, land owners, state and local governments, community organisations and individuals to adopt new practices and technologies which reduce emissions. Projects approved under the ERF are eligible to earn ACCU’s which can then be sold to generate income.

The Safeguard Mechanism requires Australia’s largest emitters of Co2 (those emitting more than 100,000 p.a. tCo2-e, of Scope 1 emissions) to reduce their emissions in line with Australia’s climate targets. Facility baselines will adjust with annual production however overall emissions limits will tighten each year in line with Australia’s climate targets. Under current legislative guidelines baselines reductions of 4.9% p.a. are required.

SMFC’s are excess Carbon Credits produced by facilities complying with their responsibilities under the Safeguard Mechanism reforms applying from 1st July 2023. Where emissions reductions are in excess of those required under the Safeguard Mechanism SMFC’s are generated. These credits are tradeable and can be bought and sold in the same way as ACCU’s, or can be banked for future use.

The Clean Energy Regulator is a Statutory Authority established by the Australian Government under the Clean Energy Regulatory Act 2011. It is responsible for administering legislation that aims to reduce carbon emissions and increase the use of clean energy. It is responsible for administering the National Greenhouse and Energy Reporting Act 2007, Carbon Credits (Carbon Farming Initative )Act 2011. Renewable Energy (Electricity )Act 2000 ,and the Australian National Registry of Emissions Units Act 2011.