Fifteen months after committing to remove the \u2018water rule\u2019, the Australian Government has abolished regulatory barriers preventing new timber plantings from participating in the Emissions Reduction Fund (ERF).<\/p>\n\n\n\n
The \u2018water rule\u2019 refers to added conditions that plantation forestry and other tree planting projects in high rainfall locations need to meet to participate in the Australian Carbon Credit Unit (ACCU) Scheme.<\/p>\n\n\n\n
Minister for the Environment and Water Tanya Plibersek said, \u201cThe water rule was always an ad-hoc approach to address the much broader issue of water interception by plantations.\u201d<\/p>\n\n\n\n
Minister of Agriculture, Fisheries and Forestry Murray Watt reiterated the Government\u2019s support for carbon investment in long-rotation softwood and plantation plantations.<\/p>\n\n\n\n
\u201cNew long-rotation softwood and hardwood plantations will help Australia meet future demand for timber while ensuring a sustainable and prosperous future for the forestry industry.\u201d<\/p>\n\n\n\n
The ACCU scheme allows landholders, communities and businesses to run projects in Australia that avoid releasing greenhouse gas emissions or removing and sequestering carbon from the atmosphere.<\/p>\n\n\n\n
It was enacted through the Carbon Credits (Carbon Farming Initiative) Act 2011<\/em> and the Carbon Credits (Carbon Farming Initiative) Rule 2015.<\/em><\/p>\n\n\n\n ACCU projects are activities to reduce emissions or store carbon, such as planting trees or removing grazing animals so that trees can re-grow.<\/p>\n\n\n\n Each ACCU represents one tonne of carbon dioxide equivalent (tCO2-e) emissions stored or avoided by a project.<\/p>\n\n\n\n ACCUs can be sold to generate income for the Australian Government or companies and other private buyers in the secondary market.<\/p>\n\n\n\n The Government uses contracts to purchase ACCUs generated by projects covered by a given method. Contracts are awarded through competitive auctions.<\/p>\n\n\n\n Removing the \u2018water rule\u2019 creates certainty for forestry to better contribute to emissions reduction through increased participation in carbon farming and investment in new timber plantations.<\/p>\n\n\n\n Plantations and farm forestry plantings store carbon, enabling growers to participate in the ACCU scheme to generate carbon credits and earn additional income from selling these credits.<\/p>\n\n\n\n These credits are certified through the Clean Energy Regulator for compliance with the detailed requirements in ACCU scheme methods and rules to ensure they have integrity.<\/p>\n\n\n\n Applications to register new plantations and tree planting projects in the ACCU scheme with a start date after 1 June 2024 will now be assessed without being subject to the water rule.<\/p>\n\n\n\nWhat this means for carbon investment in agroforestry<\/h6>\n\n\n\n