Carbon Credits and Other Legislation Amendment (Integrity and Transparency) Bill 2026
Ms COKER (Corangamite) (18:53): For my communities across the Bellarine, Surf Coast and Geelong region, the impact of climate change is absolutely real. Locals understand that protecting our coastline, oceans and the hinterland means taking meaningful action to reduce the emissions driving climate change. And they're not alone; I know so many Australians take the same view.
It's why the Albanese government has a target of net zero emissions by 2050, and one of the tools that will play an important role in achieving this target is the carbon credits mechanism. The Carbon Credits and Other Legislation Amendment (Integrity and Transparency) Bill 2026 is about making sure the carbon credits mechanism works as it should. The Albanese government is a reforming government, and that's why we're delivering this bill to ensure the market contributes to Australia's emission reduction efforts.
On top of that, we need to give Australians more confidence that those credits represent real and genuine abatement, because this is not always the case. Under the coalition government, carbon credits were misused. The scheme was watered down.
It lacked the robust guardrails needed to ensure the scheme delivered its objectives to significantly reduce emissions. This bill, through stronger oversight of how credits are created, greater transparency about the projects involved and better protections for people whose rights and interests may be affected, makes the difference. This bill will make important changes in each of these areas.
It means better protection for significant environmental landscapes and recognises that genuine carbon storage capacities is vital to emissions reduction. This bill responds to recommendations from the independent review of the Australian Carbon Credit Units Scheme, led by Professor Ian Chubb, and reviews undertaken by the Climate Change Authority. So it's based on sound foundations.
It strengthens oversight of carbon credits, improves transparency and provides clearer rules for landholders and businesses while giving greater recognition to First Nations rights and interests. The bill establishes the Carbon Abatement Integrity Committee. This will replace the existing Emissions Reduction Assurance Committee and provide independent advice to government on the integrity of ACCU methods.
This is a positive step in the right direction. The new committee will have broad functions, enhanced expertise and stronger transparency obligations, and it will be required to include at least one Aboriginal or Torres Strait Islander member, because good decision-making benefits from having the right expertise. That's particularly true when it comes to First Nations knowledge and perspective.
One of the key roles of the committee will be to advise government on the development of new carbon abatement methods. We want people developing new ways of reducing emissions to be able to participate, and we want to make sure that new methods meet the integrity, standards and safeguards our communities expect. This provides an important safeguard through the introduction of the methods transition declaration.
This gives the government a mechanism to respond to exceptional circumstances where a method used by a proponent is found to be illegitimate and a risk to the integrity of the scheme. This gives government an important backstop to ensure nothing slips through the cracks. People who have invested in projects need certainty and, importantly, the regulator needs to respond when new information identifies a serious integrity problem.
The bill also makes changes to how the scheme allows proponents to relinquish ACCUs. Project proponents will have a voluntary pathway to correct the record when they have provided incorrect information that leads to receiving ACCUs. The regulator will also have stronger powers to require relinquishment where new or updated information identifies inappropriate overcrediting.
The bill also recognises that regulation needs to be workable. That's why our measures to simplify administration and reduce regulatory burden are so important. The bill also allows for new methods that combine storing carbon with reducing emissions.
For example, an integrated approach to farm management could support projects that restore native vegetation while also helping farmers reduce methane emissions from livestock. A farm is a whole system, and this approach absolutely reflects the way many farmers actually operate. These changes can support a broader range of participants coming into the scheme while maintaining its integrity.
There's also an important regional dimension here. For communities like mine in my electorate of Corangamite, climate policy is increasingly part of the economic conversation. Farmers are considering new markets, businesses are looking at new technologies, and landholders are considering how they can improve their properties while responding to climate change.
That's where the nature repair scheme can be applied. The Albanese government is absolutely committed to ensuring regional communities have opportunities to participate in the transition, and the ACCU scheme can provide one of those opportunities. This bill also makes changes to government purchasing of ACCUs.
The bill changes the purchasing principle from securing least-cost abatement to making value-for-money purchases. That allows government to consider the broader benefits that can come from carbon projects alongside the emission reductions they deliver. Those benefits can include better biodiversity outcomes, regional economic activity and land management improvements.
That's particularly relevant for regions like mine, where a carbon project could deliver several benefits at the same time. The bill also strengthens transparency and administration under the National Greenhouse and Energy Reporting Scheme. This scheme is such a significant source of information about greenhouse gas emissions, energy consumption and energy production across our economy.
As we work together towards our emission reduction targets, we need reliable information about where emissions are coming from and how they're changing. We want to see emissions continue to come down, and we want to ensure our communities have confidence in the scheme that is delivering those results. One of the most important elements of this bill is the strengthening of First Nations rights and interests in the ACCU Scheme.
The bill changes the arrangements for projects on land that is recognised or claimed as native title land. Consent will be sought upfront, through a structured process, rather than being dealt with after a project has already been registered. This gives native title holders greater awareness of proposed projects from the outset.
It also gives project proponents a clearer process for engaging with rights holders. The bill also recognises registered native title claimants as eligible interest holders. These are important changes, because our First Nations people—people who have longstanding connections to our landscapes—should have a meaningful role in the decisions affecting country, and I know that is important for you, Deputy Speaker Scrymgour.
The carbon market is operating in places where people live and work. It is operating on farms, across bushland and in communities where people are making long-term decisions about how they manage their land. These projects affect people making long-term decisions about their land.
Landholders need clear rules, communities need to be properly consulted, and First Nations' rights and interests must be recognised right from the outset. The final part of this bill concerns the new vehicle efficiency standard. The bill adjusts the timing of several key milestones under the scheme.
For industry, certainty around those timelines is important. Businesses make investment decisions over many years. They need to understand the requirements they will be working towards and have enough time to adjust their vehicle mix.
These changes provide that certainty while supporting the emissions reductions the standard is intended to deliver. As we strengthen the foundation of our carbon market, the transition to net zero will involve large industries, small businesses, farmers, landholders, researchers and communities. There will be different pathways in different parts of our nation, and regional communities will have an important role to play.
In my electorate we know the value of agricultural land, our natural environment and the people who manage it, from farmers to small businesses and local government. We also know that change works best when people have the opportunity to understand it, participate in it and benefit from it. The Albanese government has committed more than $75 million since 2023 to deliver reforms to the ACCU scheme, informed by the independent reviews and consultation with scheme participants.
The bill is the next step in that piece of work. It recognises that maintaining integrity is an ongoing responsibility, and, as the carbon market develops, our rules will need to continue to be reviewed and improved. That is a strength of the scheme.
We can support participation while maintaining strong standards. We can encourage innovation while protecting integrity. For the Bellarine, the Surf Coast and the wider Geelong region, those opportunities are worth pursuing.
Our farmers, our landholders and our regional businesses deserve a carbon market they can have confidence in. They deserve rules that are clear, fair and workable. And Australians deserve confidence that the emissions reductions represented by this scheme are genuine.
The Carbon Credits and Other Legislation Amendment (Integrity and Transparency) Bill 2026 makes important progress towards those objectives. I would like to thank the Minister for Climate Change and Energy and the assistant minister for their work in strengthening our ACCU scheme, and I commend the bill to the House.