This page contains information about how to apply for an offsets project to be declared eligible under the Carbon Farming Initiative.
Eligibility criteria
For an offsets project to be declared eligible it must meet the following criteria:
- The applicant must:
- The project must be covered by a methodology determination that is applicable to the project. These determinations set out:
- the scope of the activities, technologies or management practices to be carried out and the circumstances or conditions under which they may be applied
- the requirements a project must meet to be covered by the determination
- The project must be undertaken in Australia (this includes external territories such as Norfolk Island).
- The activity cannot be required to be undertaken by or under a law of the Commonwealth, a State or a Territory
- The project area, or any part of it, cannot be used to meet an obligation under a Commonwealth, State or Territory law to offset or compensate for the adverse impact of an action on vegetation.
Sequestration projects
Sequestration projects, which store carbon in plants or soil, are subject to permanence obligations and must meet these additional requirements:
- the applicant must hold the applicable carbon sequestration right for the project area
- each person who holds an eligible interest in the project area needs to consent in writing to the project.
For more information, see sequestration offsets projects.
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How to apply
The project proponent applies to have their project declared an eligible offsets project by completing the relevant form found under 'Step 2: Apply for a project' on the forms and calculators page and attaching the relevant supporting documents. The Clean Energy Regulator will not accept applications for the declaration of an eligible offsets project unless the methodology relating to the project has been made into a determination.
To facilitate participation in the Carbon Farming Initiative, the Clean Energy Regulator will accept Applications for Declaration of an Eligible Offsets Project prior to a project proponent having completed Step 1 (Apply to become a recognised offsets entity and open a registry account). However, an offsets project cannot be declared eligible by the Clean Energy Regulator until a project proponent is recognised as an offsets entity.
The application form will assist with identifying which supporting documents must be provided with the application in your circumstances. The following examples are common scenarios requiring supporting documentation.
- If the project has multiple proponents (for example, a partnership), a ‘nominee’ should be nominated to be the primary contact for the project and make decisions on behalf of the multiple project proponents. A nominee must be appointed to open and manage the Australian National Registry of Emissions Units account into which Australian carbon credit units from the project will be issued. To become the project’s nominee the Clean Energy Regulator requires the written consent from all project proponents. The applicant will need to complete the Multiple Proponent Nomination of Nominee form and check that all questions have been answered and that all project proponents have signed the form and their signatures have been witnessed.
- If the project requires determination of the size of project area to estimate abatement, the project proponent must submit an electronic geospatial shape file from the Carbon Farming Initiative Mapping Tool (where applicable) for each project area or reference. The Carbon Farming Initiative Mapping Guidelines are available at Carbon Farming Initiative spatial-mapping-guidelines
- If the project is a sequestration project that stores carbon in vegetation or soil, the project proponent must obtain written consent from all persons with an interest in the area of land by submitting a completed Eligible Interest Holder Consent form for each eligible interest holder. The project proponent must complete and sign Part A before the eligible interest holder completes Part B.
Eligible interest holders will vary between projects, depending on the nature of the land title and project type. Examples of eligible interest holders include (but are not limited to):
If the project area is Torrens system Land
- Registered legal estate or interest in the land
- Registered mortgage or charge over any registered legal estate or interest in the land
- Registered Native Title Body Corporate.
If the project area is Crown Land
- Crown Lands Minister (except in relation to exclusive possession native title land or general law freehold land rights land)
- Holder of a legal estate or interest, where the estate or interest:
- came into existence as a result of a Crown grant or, was derived from such an estate or interest, or
- was created by, or under, legislation or, was derived from such an estate or interest
- Mortgage or charge over any such legal estate or interest
- Registered Native Title Body Corporate for any native title interest in the land.
If the project area is Land Rights Land
- If lease in force (and lease granted under special legislation for the benefit of Aboriginal people or Torres Strait Islanders), the Minister who administers the legislation
- If land is held by the Commonwealth (or a Commonwealth statutory authority), the Minister who administers the Aboriginal Land Rights (Northern Territory) Act 1976 or the Act that establishes the statutory authority
- Crown lands Minister (except in relation to freehold land rights land)
- Registered Native Title Body Corporate for any native title interest in the land.
The Eligible Interest Holder consent form is not required where consent is set out in a registered indigenous land use agreement.
- Project proponents of sequestration projects must also attach written evidence that they hold the exclusive legal right to benefit from carbon storage for the project area. This could include:
- A certified copy of the land title
- A certificate or notice from the relevant Crown lands Minister or Commonwealth Minister for Crown lands
- A relevant agreement such as forestry right
- Native Title Consent determination or Indigenous Land Use Agreement for exclusive possession Native Title or land rights land
- If the project has previously operated under the Commonwealth Government’s Greenhouse Friendly TM initiative, The New South Wales Government’s Greenhouse Gas Reduction Scheme, the Australian Capital Territory Government’s Greenhouse Gas Abatement Scheme or the Verified Carbon Standard, the Clean Energy Regulator may request documentary evidence of credits issued or any abatement sold or otherwise accounted for during the relevant period.
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Submit the eligible offsets project form
When the relevant forms are completed, lodge the form and supporting documents and information by:
Clean Energy Regulator
C/O The Carbon Farming Initiative
GPO Box 621
Canberra ACT 2601
cfi@cleanenergyregulator.gov.au
02 6159 7722 for the attention of ‘Clean Energy Regulator, C/O The Carbon Farming Initiative’
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Eligible offsets project assessment process
The Clean Energy Regulator will take all reasonable steps to ensure that a decision is made on an application to become an eligible offsets project within 90 days after a complete application is received. If the application is not complete or clarification is required, the Clean Energy Regulator may request further information from applicants.
The 90 day period restarts when the further information requested by the Clean Energy Regulator is received. All applications are processed as expeditiously as possible.
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Eligible offsets project approval
The Clean Energy Regulator will notify the project proponent of the outcome of their application in writing and if approved will issue a Declaration that the project is an eligible offsets project. A record of the eligible offsets project will be added to the Register of Offsets Projects on the Clean Energy Regulator website.
If the eligible offsets project is a sequestration offsets project the Clean Energy Regulator will notify the relevant state or territory land title officials. A note may be included on the relevant land title or register alerting future buyers that Carbon Farming Initiative obligations may apply.
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Methodology determinations
See methodology determinations.
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