Barry Li | Climate Reporting & Assurance

1. ACCU Scheme review consultation opens

On 20 October 2025, the Climate Change Authority (CCA) formally opened its public consultation for its statutory review of the Carbon Credits (Carbon Farming Initiative) Act 2011—the legislative foundation for Australia’s ACCU Scheme. The consultation invites feedback on the Scheme’s operation and broader role in a decarbonising economy. Submissions close at 5 pm AEDT on 8 December 2025.

📘 For more details see: CCA ACCU Scheme Reviews (Climate Change Authority)

This consultation arrives at a critical juncture: Australia’s new 2035 emissions-reduction target (-62 to -70 % below 2005 levels) places greater expectations on the ACCU Scheme to deliver credible abatement. The questions posed by the CCA—covering methodology governance, supply/demand dynamics, and market integrity—signal that the regulatory eye is shifting from voluntary offsets to mandatory disclosure and verification.

2. New ACCU method-development process launched

In mid-October, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) published an update on how the ACCU Scheme is evolving its methodology development processes. The new “proponent-led” route replaces earlier government-only prioritisation and invites industry ideas for innovative abatement methods.

📘 See: Developing new ACCU Scheme methods – DCCEEW (DCCEEW)

Key points:

• Several methods (for soil carbon, milking-cow feed additives, industrial waste-gas reductions) are now being fast-tracked.
• Projects under older methods nearing expiration must plan for continuity or transition.
• The message to smaller practitioners is clear: the Scheme is opening—and so are the risks of being left behind.

For auditors and reporting teams, this is a signal that methodological risk (i.e., which carbon credit method a project uses) could matter for disclosures, especially when credits are referenced or retired in climate-related financial statements.

3. National Climate Risk Assessment Report released

October also saw the release of Australia’s first National Climate Risk Assessment Report, paired with the new National Adaptation Plan, addressing ten priority hazards—including flooding, bushfires, drought and ocean warming—across multiple time horizons (+1.5 °C, +2 °C, +3 °C).

📘 Source: Australia’s first National Climate Risk Assessment Report (Clayton Utz)

While this is more adaptation-than-disclosure focused, the report feeds directly into the climate strategy and risk-management pillar of AASB S2. For reporting entities, the implication is clear: climate-risks are no longer theoretical or long-term—they’ll need to be disclosed in financial statements under the new regime. It also raises questions for auditors about how advised scenario-analysis, sensitivity testing and disclosures should respond to such national-level evidence.

Practical take-aways for preparers & auditors

• If you’re involved with ACCUs or offsets, the consultation from the CCA is your chance to influence future policy—but also your signal to review any exposure now (method choice, expiry risk, documentation).
• Audit & assurance teams should start factoring in method-risk assessment for carbon-credit-related disclosures: which method, who approved it, what documentation supports it?
• Smaller entities not yet in scope for full climate disclosure should still track these developments: adaptation-risk reporting cue-cards and offsets market reforms hint at future expectations.
• Boards and audit committees should ensure minutes reflect discussion around scenario-analysis and adaptation risks, especially as national assessment data becomes publicly available and integrates with disclosures.

Final thoughts

October 2025 reaffirmed that the intersection of mandatory climate disclosure (via AASB S2) and carbon-credit markets (via the ACCU Scheme) is becoming increasingly integrated. For reporting entities and assurance practitioners, this means moving beyond “Would we need it?” to “How do we prepare now?” The policy signals are unmistakable: method integrity, transparency, market dynamics and adaptation risk are now part of the disclosure and assurance agenda.

As always, stay tuned for next month’s update—more developments are already in motion.

🔗 Further reading:

• CCA ACCU Scheme Reviews
• DCCEEW Developments for ACCU Methods
• National Climate Risk Assessment Report & Adaptation Plan

Note: This article reflects my interpretation of public information and does not constitute professional or financial advice.