The Clean Energy Regulator has released the following guidance products:
The blue carbon method enables Australian carbon credit units (ACCUs) to be earned by projects that remove or modify tidal restriction mechanisms and allow tidal flow to be introduced to an area of land. This results in the rewetting of completely or partially drained coastal wetland ecosystems and the conversion of freshwater wetlands to brackish or saline wetlands. The method enables ACCUs to be earned for the establishment of coastal wetland ecosystems that occurs as a result of project activities.
There are three components within coastal wetland ecosystems that contribute to carbon abatement for a blue carbon project:
Proponents will need to consider the
legislative requirements of the blue carbon method and the requirements set out in the blue carbon method supplement.
The activity covered by the blue carbon method is the removal or modification of a tidal restriction mechanism to allow the introduction of tidal flow and the establishment of coastal wetland ecosystems in the project area. As part of the project activities, blue carbon projects may also be required to use existing infrastructure or drainage infrastructure, or modify, install or construct new infrastructure or drainage infrastructure to manage the extent of tidal inundation that occurs as a result of modifying or removing the tidal restriction mechanism.
A registered blue carbon project must maintain tidal flow to the project area throughout the project permanence period to ensure that the carbon sequestered in the vegetation and soils is maintained. This method also has prohibited and restricted activities.
Projects are required to meet general eligibility requirements and land eligibility requirements as set out in the method and the
Carbon Credits (Carbon Farming Initiative) Act 2011. Some of these requirements include that:
documentasset:The Blue Carbon Accounting Model (BlueCAM) has been developed alongside the blue carbon method and is used in accordance with the BlueCAM guidelines to calculate the net carbon abatement from each of the soil and vegetation sequestration and emissions avoidance components of a project. Project proponents are not required to conduct sampling. The model-only approach is intended to simplify the requirements of the method and reduce costs associated with sampling.
BlueCAM was developed by a collaboration of 13 of Australia’s coastal wetland scientists and experts from a number of universities across Australia. BlueCAM is based on regionally differentiated parameters that are underpinned by the latest empirical science and data. BlueCAM may be updated as new data becomes available to ensure the model provides accurate estimates of abatement.
documentasset:The Blue carbon accounting model (BlueCAM) technical overview outlines the approach used by BlueCAM to estimate carbon abatement, including the rationale behind the selection of parameters and input data.
Under this method, the net abatement amount (the amount used for crediting ACCUs) for a project will be the summed change in carbon stored by a project compared to the previous crediting report (or relative to the baseline for the first reporting period), and the emissions avoided relative to the baseline, for each carbon estimation area (CEA). This calculation will also need to account for any increases in emissions resulting from the project, including any direct impacts on forests and vegetation due to the introduction of tidal flows, fuel used for the operation of heavy machinery when carrying out project activities, and soil disturbance as a result of excavation activities.
When registering a blue carbon project, you can choose either a 25 or 100-year permanence period during which the carbon stored by the coastal wetland ecosystems that have established because of your project, must be maintained.
Sequestered carbon can be released back into the atmosphere by man-made or natural events, thereby reversing the environmental benefit of the carbon stored by the blue carbon project. Sequestration is regarded as having a ‘permanent’ benefit to the atmosphere if it is maintained for 100 years. As blue carbon projects achieve abatement through sequestration and emissions avoidance, a sequestration buffer is applied to the sequestration abatement in place of a permanence period discount and risk of reversal buffer that usually apply to ERF sequestration project. A sequestration buffer of 25% is applied to the sequestration abatement for 25-year permanence period projects.
If sequestered carbon is not maintained, or if the project is revoked, proponents may need to relinquish ACCUs that have been issued for the sequestration components of the method. The application of relinquishment provisions to blue carbon projects are outlined in the guidance:
documentasset:Relinquishment of ACCUs under joint emissions avoidance and sequestration methods. The permanence period discount applied to 100-year permanence period projects depends on the proportion of impacted land (as identified by the hydrological assessment prepared for project registration) included in the project area of a blue carbon project. If 80-100% of impacted land is included in the project area, a sequestration buffer of 5% is applied to the sequestration abatement.
Where less than 80% of impacted land is able to be included in the project area, a sequestration buffer of 25% is applied to the sequestration. This higher discount is intended to manage the risk that the coastal wetland ecosystem vegetation that establishes as a result of the project migrates beyond the project area over time.
An offsets report is the document (plus supporting information) that proponents provide to the agency to claim carbon credits. It details a project’s progress, including the net abatement amount. Proponents can nominate the intervals of their reporting periods from six months to a maximum of five years.
Proponents can submit offsets report and claim carbon credits through the Clean Energy Regulator Client Portal1. Before a proponent can be issued carbon credits, they need to set up an Australian National Registry of Emissions Units (ANREU) account2.
The blue carbon method was made by the Minister in January 2022.
For information on public consultation and consideration of the method by the Emissions Reduction Assurance Committee (ERAC), visit the
blue carbon method page on the Department of Industry, Science, Energy and Resources’ consultation hub.
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