Draft (Reforestation by Environmental or Mallee Plantings) Methodology Determination 2024 released

On 13 June 2024, the Department of Climate Change, Energy, the Environment and Water (the Department) released the ‘Draft (Reforestation by Environmental or Mallee Plantings) Methodology Determination 2024 ’ (Draft Method), for the purpose of seeking feedback from stakeholders.

The Draft Method will be a methodology determination made by the Minister for Climate Change, Energy, Environment and Water under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) (CFI Act). Proponents who undertake abatement activities under this methodology by removing carbon from the atmosphere and storing it in soil or trees may be eligible for Australian Carbon Credit Units (ACCUs). As highlighted in our recent podcast (link here), the demand for ACCUs is on the rise as a consequence of the Safeguard Mechanism reforms, and interest in developing carbon offsets projects continues.

The Department has noted that it proposes only ‘minor changes’ from the 2014 method. Although the changes are relatively minor, we anticipate that they will still be welcomed by project proponents of both established and new sequestration projects given they may assist in broadening the types of plantings that can qualify under this method, and the changes may also assist in streamlining the project schedule prior to registration.   

The changes include the following:

• Proponents may now own seeds/seedlings before applying to register a project and can prepare the land for planting between applying to register and registration. This will assist proponents to commence some activities which would otherwise have been prevented as a consequence of the ‘newness’ requirement and could assist with project scheduling.
• Mixed-species environmental plantings may include climate resilient native species not part of the local vegetation provided these species are appropriate for the local area. Proponents can seek a letter of endorsement from a person qualified in ecology or a similar relevant field that can be presented to the Regulator to support the inclusion of a climate resilient species not currently part of the local native vegetation.
• Proponents can plant both seeds and tube-stock together for linear mixed-species plantings.
• Fruits, nuts, seeds, and leaves from a project can be sold. Only 10% from each tree can be harvested each year. Bark, fallen timber and wood cannot be sold. These restrictions do not impact on traditional Indigenous practices or Native Title Rights.
• For projects using a specific FullCAM calibration, fertiliser use is allowed during the first 12 months of planting.
• Infill planting rules are included.
• Proponents must use the FullCAM version in force at the end of each reporting period.

The Explanatory Memorandum states that proponents of existing approved projects can apply to move to the new methodology determination under section 128 of the CFI Act where their project is covered by the new determination.

The documentation released by the Department includes:

• an exposure draft;
• a draft explanatory statement; and
• a draft ‘Simple Method Guide’.

The consultation period closes on 15 July 2024. Feedback and submissions will inform the preparation of the final draft, which will be considered by the Emissions Reduction Assurance Committee against the Offsets Integrity Standards.

Please contact Naomi Hutchings or Melanie Debenham if you have any questions in relation to the development of your offsets project.

Article written by Naomi Hutchings, Melanie Debenham and Jared Hee.