Australia’s CER relinquishes 211,000 carbon credits

Australia's Clean Energy Regulator (CER) has paid back 211,000 Australian Carbon Credit Units (ACCUs) to the federal government, to "correct incorrect reporting of [CO2] abatement".

The 211,000 relinquished ACCUs came from 18 projects, totalling less than 0.2pc of the 120mn ACCUs issued so far, showed CER's ACCU Scheme Compliance and Assurance Framework report on 30 May. The CER can require the relinquishment of ACCUs if there has been a "significant reversal of carbon stores" in a project.

The CER also recently released new, layman-friendly guidelines on carbon credits. This comes after a government-appointed panel made recommendations to improve the ACCU scheme in January. The panel found that the system was sound but made 16 recommendations to improve governance, structure, and transparency — all of which the government accepted in principle.

Overseen by the Emissions Reduction Fund (ERF), ACCUs have boomed in popularity with new projects being developed to respond to the 12-month old Labor government's tougher CO2 reduction pledge and emissions caps on all facilities producing more than 100,000 t/yr of CO2 equivalent. But sceptics have alleged significant ERF governance flaws leading to last year's review.

Separately, Australia's Commonwealth Bank (CBA) has made a minority equity investment in Australian firm Nindethana Seed Service to support the growth of Australia's native seed market. The bank said growing demand from carbon sequestration and biodiversity restoration projects requires expanding seed supply, which is currently outstripped by demand.

CBA will also enter a strategic partnership with not-for-profit environmental business Greening Australia, the majority shareholder of Nindethana. CBA said the agreement will focus on supporting Australia's carbon market, including credit supply.

By Tom Major

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