Australia releases Environmental Plantings method update for ACCU Scheme

The Australian government released Nov. 20 an updated version of Environmental Plantings methodology following the expiry of the previous version in September, according to an official release.

The Department of Climate Change, Energy, the Environment and Water said in the release the new method was "clearer and simpler than the 2014 version."

The announcement of the new methodology, Reforestation by Environmental or Mallee Plantings 2024, is significant as several farmers and landowners can now register their projects just ahead of the beginning of the planting season.

Further, the release said the new method was aimed at enhancing biodiversity and improving the integrity of registered projects.

"Our work on this remake of the Environmental Plantings method will increase integrity and make it easier for landholders to undertake projects, benefiting land managers, industry, and First Nations peoples," Minister for Climate Change and Energy Chris Bowen said.

Sources S&P Global Commodity Insights spoke to earlier said they expected an announcement on the Environmental Plantings to be made earlier than the much-awaited Integrated Farm and Land Management method, which is being developed to replace the Human-Induced Regeneration methodology that expired in September 2023.

There was a delay in announcing the IFLM method as it includes several methodologies, which have expired previously, into one basket and is expected to be announced only in 2025, an Auckland-based ACCU trader said.

Commodity Insights reported Oct. 30 that the Australian government had decided to prioritize the development of four new proponent-led methods under the Australian Carbon Credit Unit Scheme.

The country's independent Emissions Reduction Assurance Committee, or ERAC, evaluated 39 new method submissions and identified four methods for prioritization -- improved native forest management in multiple-use public forests, extending Savanna Fire Management to the northern arid zone, improved avoided clearing of native regrowth, and reducing disturbance of coastal and floodplain wetlands by managing ungulates.

Platts assessed prices of Environmental Plantings at A$49.55/mtCO2e Nov. 19, Commodity Insights data showed, steady from the previous version.

Further, the announcement comes after Platts ACCU prices in the liquid segment of the market hit an all-time high Nov. 18-19 due to firm preference from buyers, including safeguard entities, ahead of the upcoming festival season and compliance deadline in March 2025.

Sources also flagged supply concerns in 2026-2027 if methods are not released in time for registrations, which will result in credit issuances being delayed.