Why is forestry being underutilised in ACCU Scheme?Friday 28 Feb 2025
Despite Australia being the seventh most forested nation in the world, less than 1% of Australia's current native forest and plantation estate is eligible for the ACCU Scheme. This limited participation can be attributed to several constraints within the ACCU Scheme, primarily the limited number of methods available for the forest sector to engage in and constraints within those that is can currently participate. The study found that only 3.27% of ACCUs have been issued to forest sector projects. This is despite research showing that how forests are managed significantly impacts their carbon sequestration potential. This low level of forest sector participation in carbon markets is not mirrored in the major international carbon markets. The study identified that forest sector opportunities are prevalent in the top five international voluntary markets, being; the Verified Carbon Standard, Californian Compliance Offset Program, Gold Standard, American Carbon Registry, and Climate Action Reserve, along with the top four compliance markets by size, including; the Chinese ETS, EU ETS, California Compliance Offset Program, and the South Korean ETS. Forest sector projects, encompassing 21 types, accounted for 46% of the voluntary market share in 2021. Specifically, forest projects make up over 50% of the South Korean ETS. For the Californian Compliance Offset Program, forest offset credits account for 85% of all carbon credits issued under that scheme until 2022. These examples highlight the significant potential for forest sector participation in carbon markets, which is currently underutilised in Australia. The study also identified several options for increasing forest sector participation in the ACCU Scheme. These include revising existing methods, developing new ones through the ACCU Scheme’s proponent-led method development process, and increasing participation in international voluntary markets. By embracing lessons from international practices and addressing current methodological constraints, Australia can realise this potential. Doing so would not only bolster the nation’s climate change mitigation efforts but also unlock the co-benefits of biodiversity, water quality, soil productivity, and ecosystem resilience, ultimately contributing to a sustainable and resilient bioeconomy. More >> Source: MDPI | ||
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