The past few years have seen a rapid increase in organisations transitioning to carbon neutrality. For the vast majority, achieving carbon neutral status requires at least some level of carbon offsetting.
For businesses with the opportunity, a carbon offset strategy with self-generating carbon offsets can be an excellent way to mitigate the risks from the future price of carbon. It can also become a rewarding, cornerstone piece of any organisation’s carbon neutral (or net zero) strategy as well as broader sustainability goals.
The Emissions Reduction Fund (ERF) provides an opportunity for organisations to generate high-integrity carbon credits known as Australian Carbon Credit Units (ACCUs). The ERF is a voluntary scheme that provides incentives to adopt new practices and technologies to reduce emissions.
A number of activities are eligible under the scheme, including the planting of trees. Participants in the scheme earn ACCUs for emissions reductions. One ACCU is earned for each tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project. ACCUs can be sold to generate income, either to the government through a carbon abatement contract, or in the secondary market. ACCUs can also be surrendered to achieve carbon neutrality and emissions reductions targets.