Carbon Credits and Other Legislation Amendment (Integrity and Transparency) Bill 2026

Ms THWAITES (Jagajaga) (18:39): Australia's carbon market is one of the largest and most effective schemes of its kind anywhere in the world. Through the Australian Carbon Credit Unit Scheme, the ACCU Scheme, projects are supported if they cut or avoid greenhouse gas emissions or remove and store carbon from the atmosphere. And this happens in practical ways, through new technology, upgraded equipment and changes to work practices that improve productivity and energy use.

It also involves changing the way vegetation and landscapes are managed. Since 2011, the ACCU Scheme has delivered 190 million tonnes of abatement through more than 2,600 projects. It's a market valued at more than $4 billion.

The scheme is absolutely helping Australia meet its emissions reduction targets, including our most important target of net zero by 2050. The benefits go beyond that. It delivers economic, social and cultural benefits while improving environmental and biodiversity outcomes across the country, and those benefits are particularly important in rural, regional and remote communities.

I've had the privilege of seeing firsthand what the ACCU Scheme can mean for traditional owner groups and other First Nations landholders. The scheme supports savanna fire management and carbon storage projects that cut emissions, care for country and create local opportunities. It helps communities build economic independence on their own terms.

Last month, I met with the Arnhem Land Fire Abatement group to better understand its work. ALFA is an entirely Aboriginal owned, not-for-profit carbon farming business that supports traditional owners to manage fire projects across more than 80,000 square kilometres in the north-western Northern Territory, and their work combines traditional Indigenous knowledge with modern technology.

It works by having traditional owners and ranger groups carry out carefully managed cool burns early in the dry season. These burns create a patchwork of firebreaks across the landscape, reducing the risk of larger, destructive and unmanageable bushfires later in the season. Through this work, by reducing the intensity and spread of wildfire in the landscape, ALFA is reducing greenhouse gas emissions and allowing for more carbon to be stored.

ALFA manages multiple projects across Arnhem Land, but I would like to speak most about its West Arnhem Land Fire Abatement Project, which was the first savanna fire abatement project anywhere in the world. This project covers 28,000 square kilometres, and income from the sale of ACCUs is changing lives in the local community by funding initiatives such as women's ranger programs that are empowering First Nations women to care for country, protect sacred sites and lead environmental management projects; the Nawarddeken Academy, a bicultural, community driven education model delivering full-time learning on country in western Arnhem Land; and rock art documentation, cultural site maintenance and ecological monitoring.

ALFA's West Arnhem project also gives rangers and traditional owners the opportunity to use fire management activities to teach younger generations about country, songlines and cultural knowledge. This ALFA story is one of many across northern Australia. It shows us what is possible when climate action, caring for country and community priorities all work together.

The scale of that contribution is significant. First Nations projects account for 70 per cent of the area registered under savanna fire management methods and generate 74 per cent of the carbon credits produced. Since 2012, Indigenous fire management projects have operated across 24 million hectares of northern Australian savanna, abating around 1.2 million tonnes of emissions each year and 9.8 million tonnes in total.

Ancient First Nations cultural fire practices, which capture carbon and reduce emissions, are also recognised in two new savanna fire ACCU methods, estimated to generate an additional $7.7 billion across northern Australia. These are strong outcomes, and they show what is possible when First Nations knowledge, strong environmental policy and economic opportunity come together.

But, if the scheme is to keep delivering these outcomes, Australians must be able to trust it. They need to know that the emissions reductions are real, the credits are credible and the scheme has integrity. They also need to see transparency and accountability built into every part of the scheme, and that is the purpose of these reforms—to strengthen integrity, improve transparency and make sure that the scheme continues to work as it should.

Importantly, the legislation also strengthens consent requirements for traditional owner groups. It formally recognises registered native title claimants as eligible interest holders in carbon projects, and it requires upfront and staged consent for projects on land that is recognised as native title land or is subject to a native title claim. This matters.

Integrity is not only about the carbon that is credited; it is also about how projects are developed and ensuring that First Nations people have a genuine voice in the decisions that affect them. The legislation also enables the existing Emissions Reduction Assurance Committee to become the new Carbon Abatement Integrity Committee. It provides a clear and continuing mandate to protect the integrity of the scheme and maintain public confidence in it.

It clarifies the governance of proponent led method development and gives the minister powers to act if critical integrity risks emerge. And it makes sure the scheme can respond when new evidence, new risks or new opportunities arise. These changes also support greater investment and participation in research and development.

That is important because reaching net zero will require us to keep looking for new and credible ways to reduce emissions, and those methods must be backed by evidence and strong safeguards. These reforms strengthen the Clean Energy Regulator's compliance and publication powers. These are careful and practical reforms.

They are about taking a strong scheme, one that is world leading and that our country should absolutely be proud of, and making it even stronger. They are making sure that every credit stands for genuine emissions reduction. And they're giving landholders, communities, businesses and the Australian public confidence that the scheme is working with integrity.

There are so many benefits that come from this work and from the work that will be seen through this bill. In addition to strengthening the ACCU scheme, I also want to touch on two other important parts of the legislation before us: changes to the National Greenhouse and Energy Reporting Act 2007 and changes to the New Vehicle Efficiency Standard. The National Greenhouse and Energy Reporting Scheme provides a single national framework for companies to report information about greenhouse gas emissions, energy production and energy consumption.

These measures will improve the transparency of emissions and energy information reported under the scheme. They will also make the scheme's administration more effective and efficient. These changes streamline the publication of information submitted under the scheme.

They provide a flexible regulation-making power so that more detailed information can be published when needed. The legislation also makes a practical amendment to the New Vehicle Efficiency Standard. The Albanese government legislated this standard in 2024, and it's given Australians access to a greater and better range of cars, including more hybrid and electric vehicles.

This standard is working. Australians are increasingly embracing electric vehicles. Last month, electric vehicle sales overtook petrol car sales in Australia for the first time, as more drivers choose lower running costs and greater choice.

More than 27,000 battery electric vehicles were sold, accounting for 24.9 per cent of all new vehicle sales, which was a new monthly record. This reflects what we've seen as a broader trend across the year, with EV sales increasing significantly. This amendment fixes a timing issue that affects how vehicle suppliers meet their emissions targets under the standard, ensuring the scheme continues to operate as intended.

Australia's path to net zero depends on credible action and on institutions people can trust. As we do this work, that is what this government is focused on providing through this work—benefits for First Nations communities and for communities in rural and regional Australia, and benefits then more broadly for our country as a whole and, of course, for our world as a whole.

We are considered in how we approach that. It is disappointing but not surprising to hear that those opposite oppose this work. When it comes to considered work that sets Australia up for the future we should have, that sets Australia up for a future where we meet net zero, that makes sure we deal with the climate crisis in front of us, those opposite always step away from the challenge.

They are never up to the challenge of making sure that Australians benefit from the transition to clean green energy. Instead, they try and bury their heads in the sand and they try and prop up ageing coal-fire stations. We heard some of that from the member for Wannon, who is great at bringing the criticism in this place but not great at bringing the plans for transition or explaining how he will support communities to benefit from the future.

We get from those opposite, time and time again, this approach of denial. We saw it when they were in government—denial and delay. Australians will suffer if that approach becomes the approach they take forward.

As I said, we saw that when they were in government, when they didn't have any plans for the future of energy transition in this country—when, under their watch, coal plants were closing and nothing was replacing them. As a government, we have done a great deal of work to set this country in the right direction to increase the amount of renewables in our system.

More than half a million cheaper home batteries are now installed in households around Australia. There has been a record uptake of rooftop solar. We are now seeing EVs overtake petrol cars.

Australians understand that this is the future. They understand that it is in their economic interests and in all our interests for this transition to happen in a considered and orderly way, with a government that is serious about it. This bill, this work, builds on all that work we have already done.

It provides Australians with the surety that ACCUs are working as they should. It provides transparency and accountability. It provides benefits for all those communities I outlined, for First Nations communities across the Top End and more broadly across Australia.

I commend the bill to the House.