The government appointed an independent panel to review the integrity of Australian Carbon Credit Units (ACCUs) under the Emissions Reduction Fund.

The purpose of the review was to ensure ACCUs and the carbon crediting framework maintain a strong and credible reputation supported by participants, purchasers and the broader community.

The panel examined governance arrangements and legislative requirements of the carbon crediting scheme, as well as the integrity of the key methods used, and other scheme settings affecting the integrity of ACCUs. It considered the broader impacts of carbon projects, including for agriculture, biodiversity, participation of First Nations people, and regional communities. The panel also examined the requirements for use of ACCUs under Climate Active.

The panel concludes that the ACCU scheme arrangements are essentially sound, incorporating mechanisms for regular review and improvement, and recommends a number of changes to clarify governance, improve transparency, facilitate positive project outcomes and co-benefits, and enhance confidence in the integrity and effectiveness of the scheme.