Barry Li | Climate Reporting & Assurance

Insights on climate reporting, carbon markets, and sustainability assurance.

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Barry Li

PhD candidate in Accounting and Finance at the University of Newcastle, Australia, researching climate reporting, carbon markets, and sustainability assurance. An auditing practitioner with over 10 years’ experience, sharing insights at the intersection of academia and practice.

    ACCU Scheme: what it is, who it’s for, and why most S2 reporters won’t use it (yet)

    In brief: The Australian Carbon Credit Unit (ACCU) Scheme lets registered projects earn tradeable carbon credits by avoiding, reducing or removing emissions (e.g., land sector, waste, industrial methods). It’s an operational crediting regime under the Carbon Credits (Carbon Farming Initiative) Act 2011, administered by the Clean Energy Regulator (CER). It’s separate from financial reporting standards like AASB S2/IFRS S2. (DCCEEW)

    Who it really applies to:

    • Project proponents who register a method under the ACCU Scheme to generate credits and sell/retire them.
    • Safeguard Mechanism facilities that may use ACCUs to offset emissions above baselines. (Clean Energy Regulator)

    Who it usually doesn’t apply to:

    • Most general private-sector businesses coming into scope for AASB S2 climate disclosure. They typically won’t need to interact with ACCUs unless they choose to voluntarily offset, or are captured by the Safeguard. (Different laws, different purposes.)

    Assurance/audit:

    • Scheme audits are not financial statement audits and must be performed by CER-registered greenhouse & energy auditors (audit team leader must be on the Register). Find an auditor here: CER Register of Greenhouse & Energy Auditors. (Clean Energy Regulator)

    Tensions & issues (very brief)

    • Quality differentiation & premiums: prices can vary by method (e.g., HIR vs “generic”), and buyers often pay more for units perceived as higher-integrity or with co-benefits. (Clean Energy Regulator)
    • Evolving market design: new trading infrastructure and liquidity have grown, with ongoing scrutiny of methods and governance. (Xpansiv)

    Should firms disclose net or also gross emissions?

    For transparency, firms that use offsets should still disclose gross emissions (what you actually emitted) and any net figure after ACCU use. Gross shows real operational performance; net shows your offsetting strategy. (This is my personal view, aligned with emerging investor expectations—not advice.)

    ACCU price highlights (selected points)

    (Prices vary by method; figures below are for “generic” ACCUs unless noted.)

    Note: ACCUs are not homogeneous. Some methods/attributes trade at premiums. Always check the unit type you are discussing or buying. (Clean Energy Regulator)

    Why this matters (watch this space)

    Most businesses under AASB S2 won’t need ACCUs for compliance. However, policy settings can change (e.g., Safeguard thresholds, coverage). Better climate disclosures may give government more visibility over who could be brought into compliance markets in future. That’s my personal opinion only—not policy or advice.

    Official sources

    Disclaimer: This post is general information only and not financial advice. If you need to buy or retire ACCUs, seek advice from a qualified professional.

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