One Australian carbon credit unit represents one tonne of verified carbon dioxide equivalent abatement. ACCUs are created from eligible offsets projects and issued by the Clean Energy Regulator in accordance with section 147 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (CFI Act).
Transactions of ACCUs occur through the Australian National Registry of Emissions Units (ANREU).
Greenhouse gas emissions are gases which trap heat in the atmosphere, such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O).
Greenhouse gas emissions are measured as tonnes of carbon dioxide equivalence (CO2-e). This means that the amount of a greenhouse gas that a business emits is measured as an equivalent amount of carbon dioxide, which has a global warming potential of one.
The secondary market consists of financial institutions, traders, agents and installers, parties that are involved in the buying and selling of renewable energy certificates or ACCUs between private entities. For example, the price of an ACCU on the secondary market is the price at which private entities agree to trade ACCUs.
While the Clean Energy Regulator does not intervene in the secondary market, the Clean Energy Regulator's Renewable Energy Certificate Registry facilitates transactions between parties.
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.