How to Choose Australian Carbon Credits in 2026

If your organisation needs to compensate for unavoidable emissions, choosing an Australian Carbon Credit Unit (ACCU) is an important decision. While all ACCUs are issued under the Australian Government’s ACCU Scheme, the projects that generate them can have very different characteristics and environmental outcomes. 

Understanding the project behind an ACCU can help organisations make informed purchasing decisions and select credits that align with their environmental objectives, reporting requirements and values. 

What makes an ACCU credible? 

The ACCU Scheme operates under the Carbon Credits (Carbon Farming Initiative) Act 2011 and its associated integrity framework. Approved methods must meet the scheme’s Offset Integrity Standards (OFIs), which are designed to provide confidence that credited emissions reductions and removals are genuine and appropriately accounted for. The six OFIs under the Act are:  

• Additional – the credited activity would not occur without the incentive provided by the scheme. 

• Measurable and verifiable – emissions reductions or removals can be quantified using rigorous methodologies and independently checked. 

• Eligible – the project and methodology meet the requirements of the ACCU Scheme. 

• Evidence-based – methodologies are supported by appropriate scientific and technical evidence. 

• Project emissions deducted – relevant greenhouse gas emissions resulting from the project are accounted for and deducted where required. 

• Conservative – methodologies are designed to avoid overstating the amount of emissions reduction or removal achieved. 

These principles provide an important foundation for the integrity of ACCUs. 

Further, the Emissions Reduction Assurance Committee (ERAC) provides independent advice on the integrity of ACCU methods before they are approved. ACCU projects are also subject to audit requirements, with registered greenhouse and energy auditors assessing projects in accordance with the scheme’s requirements. gistered greenhouse and energy auditor, first when it applies for credits and on a scheduled basis after that. 

Evaluating the provider, not just the credit

Two suppliers can both sell you compliant, registry-verified ACCUs and still offer very different levels of service and transparency. When you’re comparing providers, the questions you ask will depend partly on why you’re buying.  

1. Can they identify the specific project generating your credits, or are you buying a pooled parcel? Direct visibility can be particularly valuable if you’re voluntarily offsetting emissions and want to report on the project, location, method or non-carbon benefits associated with your purchase. 

2. What’s their track record on delivery? Ask how long they’ve operated in the ACCU market and whether they can provide references from comparable buyers. 

3. Do they develop projects themselves, or only broker other people’s? A developer with its own portfolio typically has deeper knowledge of a project’s audit history and co-benefits – and more incentive to protect its reputation over a single sale. 

4. What happens if a project underdelivers or is deregistered? The Carbon Credits (Carbon Farming Initiative) Act 2011 sets out what happens to ACCUs when a project is revoked or stored carbon is reversed. Ask your supplier how these rules apply to the credits you’re buying. 

5. Can they support your reporting obligations directly? If you need documentation aligned to Climate Active (before it ends next year), Safeguard Mechanism surrender or a specific ESG framework, a provider with advisory capability will save you significant time. 

For Safeguard Mechanism compliance, the specific project or vintage may be less important than securing eligible credits. For voluntary offsetting or sustainability reporting, project provenance and co-benefits can matter much more. 

Matching Australian carbon credits to your obligation 

However you’re buying, the number of ACCUs you need is based on the emissions you need to offset, with one ACCU representing one tonne of CO2-e. Emissions reduction should come first, with offsets used to address the emissions that remain. 

Project types and what they signal 

Removals (sequestration) 

Removals take carbon dioxide out of the atmosphere and store it. Vegetation and reforestation projects fall into this category, sequestering carbon while delivering biodiversity and landscape restoration outcomes. Carbon Neutral’s own Wandalong Biodiverse Reforestation Project is one such example. 

Avoidance 

Avoidance projects prevent emissions that would otherwise have occurred. Savanna fire management is one example: early dry season burns in northern Australia can prevent larger, more emissions-intensive late-season fires. Many projects also involve First Nations communities applying traditional fire management knowledge, creating cultural and community core benefits. 

Reduction 

Reduction projects reduce emissions from an existing activity or process. Agricultural and soil carbon projects can reward farmers for changing management practices and improving soil health, while energy and industrial efficiency projects reduce emissions through more efficient processes or technologies. 

ACCUs from projects with strong, verified co-benefits – or core benefits such as significant Indigenous participation or engagement – command a premium over generic ACCUs. Such core and co-benefits are generally not recorded on the ACCU Scheme project register, however, so buyers should ask the project developer for evidence of any claimed benefits before purchasing. 

What documentation to request 

• ANREU registry statements confirming your holdings and transaction history 

• Project ID, method and crediting period for the specific credits you’re buying 

• A voluntary cancellation verification certificate once you cancel units for offsetting 

• The AFMA standardised contract for ACCU spot trades, where applicable 

Tax considerations 

ACCUs are GST-free and the cost of acquiring them is tax deductible, with the deduction effectively deferred until the ACCU is sold or surrendered. Detailed information about the tax treatment of ACCUs can be found on the Australian Taxation Office’s website. And as always, confirm specifics with your tax adviser. 

How to get started with Carbon Neutral 

Carbon Neutral brings over 20 years of experience working with individuals and organisations to reduce their impact on the planet. 

We develop and supply ACCUs through eligible domestic projects and offer advisory support from initial footprint assessment through to Climate Active certification.  

Contact our team to discuss your carbon credit requirements and learn how we can support your sustainability goals. 

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