Carbon Farming Initiative

Carbon pricing mechanism repeal

The Clean Energy Act 2011 has been repealed. This abolishes the carbon pricing mechanism from 1 July 2014. Liable entities must still meet their carbon price obligations for the 2013-14 financial year.

Content on the Clean Energy Regulator website will be progressively updated to reflect these changes. More information can be found on the carbon pricing mechanism repeal page.

The Carbon Farming Initiative enables individuals and entities to earn Australian carbon credit units (ACCUs) through activities that store carbon or reduce greenhouse gas emissions on the land.

ACCUs earned under the Carbon Farming Initiative can be sold to people and businesses wishing to offset liability under the carbon pricing mechanism or voluntarily offset their emissions.

There are different types of activities that can be conducted under the Carbon Farming Initiative. These fall into two categories – emissions avoidance, where greenhouse gas emissions are prevented from entering the atmosphere, and sequestration, where carbon is stored on the land.

The scope of emissions avoidance and sequestration activities​​ that may be eligible under the Carbon Farming Initiative is defined under the Carbon Credits (Carbon Farming Initiative) Act 2011. A methodology determination must also be in place for activities under the Carbon Farming Initiative, to be considered an eligible project by the Clean Energy Regulator.

See the five steps to participate in the Carbon Farming Initiative for more information on applying to join and conduct a project through to earning ACCUs and completing a project.

​The Carbon Farming Initiative Amendment Bill 2014 is currently tabled for consideration by the parliament.​

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Soil carbon method released

The ‘Sequestering Soil Carbon in Grazing Systems’ methodology determination is now available. Projects using this methodology store carbon on grazing land by introducing activities that either increase inputs of carbon to the soil, reduce loss of carbon from the soil, or both. A guide to using the methodology determination has been published. ​


New tool aids faster application processing

The Clean Energy Regulator has developed an eligible offsets projects application checklist that highlights information and documentation that must be provided when applying to run a project. Read it in conjunction with the application form.

Carbon Farming Initiative transition

The Carbon Farming Initiative Amendment Bill 2014 will affect your Carbon Farming Initiative project if passed. To find out what the Bill proposes and the impact of the changes on current Carbon Farming Initiative projects, read our fact sheet CFI and the ERF – what does it mean?