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Carbon Credits (Carbon Farming Initiative) Act 2011
In force
Administered by
Department of Climate Change, Energy, the Environment and Water
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C2024C00490 (C24)
14 October 2024
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Part 1—Preliminary
1 Short title
2 Commencement
3 Objects
4 Simplified outline
5 Definitions
6 Vacancy in the office of an Emissions Reduction Assurance Committee member
7 Electronic notice transmitted to the Regulator
7A Extended accounting period
8 Crown to be bound
9 Extension to external Territories
9A Extension to exclusive economic zone and continental shelf
9B Application to foreign ships
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Part 2—Issue of Australian carbon credit units in respect of offsets projects
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Division 1—Introduction
10 Simplified outline
Division 2—Issue of Australian carbon credit units in respect of offsets projects
11 Issue of Australian carbon credit units in respect of offsets projects
Division 3—Certificate of entitlement
12 Application for certificate of entitlement
13 Form of application
14 Further information
15 Issue of certificate of entitlement
15A No double counting test
16 Unit entitlement—sequestration offsets projects
18 Unit entitlement—emissions avoidance offsets project
20 Certificate of entitlement not transferable
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Part 2A—Purchase of eligible carbon credit units by the Commonwealth
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Division 1—Introduction
20A Simplified outline of this Part
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Division 2—Carbon abatement contracts
20B Carbon abatement contracts
20C When carbon abatement contracts may be entered into
20CA Duration of carbon abatement contracts
20D Regulator has powers etc. of the Commonwealth
20E Conferral of powers on the Regulator
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Division 3—Carbon abatement purchasing processes
20F Carbon abatement purchasing process
20G Conduct of carbon abatement purchasing processes
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Division 4—Miscellaneous
20H Legislative rules may provide for certain matters relating to purchased eligible carbon credit units etc.
20J Certain instruments relating to Commonwealth procurement are not applicable
20K Carbon abatement contracts are not instruments made under this Act
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Part 3—Eligible offsets projects
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Division 1—Introduction
21 Simplified outline
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Division 2—Declaration of eligible offsets project
22 Application for declaration of eligible offsets project
23 Form of application
24 Further information
25 Withdrawal of application
26 Application may be split
27 Declaration of eligible offsets project
27A Suspension of processing of applications for declarations of eligible offsets projects
28 Declaration may be subject to condition about obtaining regulatory approvals
28A Declaration may be subject to condition about obtaining consents from eligible interest holders
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Division 3—Variation of declaration of eligible offsets project
29 Voluntary variation of declaration of eligible offsets project in relation to the project area or project areas
30 Voluntary variation of declaration of eligible offsets project in relation to the project proponent
31 Voluntary variation of conditional declaration of eligible offsets project—condition of declaration has been met
31A No variation of declaration of eligible offsets project as a 100 year or 25 year permanence period project
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Division 4—Revocation of declaration of eligible offsets project
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Subdivision A—Voluntary revocation of declaration of eligible offsets project
32 Voluntary revocation of declaration of eligible offsets project—units issued
33 Voluntary revocation of declaration of eligible offsets project—no units issued
Subdivision B—Unilateral revocation of declaration of eligible offsets project
34 Unilateral revocation of declaration of eligible offsets project—condition of declaration has not been met
35 Unilateral revocation of declaration of eligible offsets project—eligibility requirements not met etc.
36 Unilateral revocation of declaration of eligible offsets project—project proponent ceases to pass the fit and proper person test
37 Unilateral revocation of declaration of eligible offsets project—person responsible for carrying out project ceases to be the project proponent
38 Unilateral revocation of declaration of eligible offsets project—false or misleading information
Division 5—Entries in title registers
39 Entries in title registers—general
40 Entries in title registers—land subject to carbon maintenance obligation
Division 7—Net total number of Australian carbon credit units issued in relation to an eligible offsets project
42 Net total number of Australian carbon credit units issued in relation to an eligible offsets project
Division 8—Eligible interest in an area of land
43 Eligible interest in an area of land—applicable carbon sequestration right
44 Eligible interest in an area of land—Torrens system land
45 Eligible interest in an area of land—Crown land that is not Torrens system land
45A Eligible interest in an area of land—native title land
Division 10—Native title land
46 Registered native title bodies corporate—deemed project proponent
47 Regulator to notify Crown lands Minister of declaration of eligible offsets project
48 Designation of special native title account
49 Issue of Australian carbon credit units to special native title account
50 Units held in special native title account
51 Regulations or legislative rules about consulting common law holders etc.
Division 11—Freehold land rights land
52 Regulator to notify Crown lands Minister of declaration of eligible offsets project
Division 12—Types of projects
53 Emissions avoidance offsets projects
53A Area based emissions avoidance projects
54 Sequestration offsets projects
56 Excluded offsets projects
Division 13—Restructure of eligible offsets projects
57 Restructure of eligible offsets projects
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Part 4—Fit and proper person test
59 Simplified outline of this Part
60 Fit and proper person test
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Part 5—Crediting period
68 Simplified outline of this Part
69 Crediting period—basic rule
70 Crediting period—general transitional rule
71 Crediting period—transitional rule for avoided deforestation projects
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Part 6—Reporting and notification requirements
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Division 1—Introduction
75 Simplified outline
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Division 2—Reporting requirements
76 Offsets reports
77 Declaration that offsets report requirement does not apply
77A Offsets report may be about a part of a project etc.
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Division 3—Notification requirements
78 Notification requirement—ceasing to be the project proponent for an eligible offsets project otherwise than because of death
79 Notification requirement—death of the project proponent for an eligible offsets project
80 Notification requirement—methodology determinations
81 Notification requirement—natural disturbances
82 Notification requirement—reversal of sequestration due to conduct of another person
83 Notification requirement—project becomes inconsistent with a regional natural resource management plan
84 Notification requirement—event relevant to whether a project proponent is a fit and proper person
85 Regulations or legislative rules may impose notification requirements
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Part 7—Requirements to relinquish Australian carbon credit units
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Division 1—Introduction
86 Simplified outline
86A Permanence period
87 100 year permanence period
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Division 2—General relinquishment requirements
88 Requirement to relinquish—false or misleading information
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Division 3—Relinquishment requirements for sequestration offsets projects
89 Requirement to relinquish—revocation of declaration of eligible offsets project
90 Requirement to relinquish—reversal of sequestration other than due to natural disturbance or conduct etc.
91 Requirement to relinquish—reversal of sequestration due to natural disturbance or conduct and no mitigation happens
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Part 8—Carbon maintenance obligation
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Division 1—Introduction
96 Simplified outline
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Division 2—Carbon maintenance obligation
97 Carbon maintenance obligation
98 Variation or revocation of declaration of carbon maintenance obligation
99 Revocation of declaration of carbon maintenance obligation—voluntary relinquishment of Australian carbon credit units
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Division 3—Injunctions
100 Injunctions
101 Interim injunctions
102 Discharge etc. of injunctions
103 Certain limits on granting injunctions not to apply
104 Other powers of the Federal Court unaffected
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Part 9—Methodology determinations
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Division 1—Introduction
105 Simplified outline
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Division 2—Methodology determinations
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Subdivision A—Making of methodology determinations
106 Methodology determinations
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Subdivision B—Variation of methodology determinations
114 Variation of methodology determinations
115 When variation takes effect
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Subdivision C—Duration of methodology determinations
122 Duration of methodology determinations
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Subdivision D—Revocation of methodology determinations
123 Revocation of methodology determinations
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Subdivision DA—Advice about making, varying or revoking methodology determinations
123A Advice by the Emissions Reduction Assurance Committee
123B Additional matters for the Emissions Reduction Assurance Committee to take into account
123C Advice about whether methodology determination deals with eligible carbon abatement
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Subdivision DB—Consultation by the Emissions Reduction Assurance Committee
123D Consultation by the Emissions Reduction Assurance Committee
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Subdivision E—Applicable methodology determination
124 Applicable methodology determination for a reporting period
124A Modified meaning of crediting period for an emissions avoidance offsets project that has an extended accounting period
125 Original methodology determination continues to apply after expiry
126 Original methodology determination continues to apply after variation
127 Original methodology determination continues to apply after revocation
128 Request to approve application of methodology determination to a project with effect from the start of a reporting period
129 Further information
130 Regulator may approve application of methodology determination to a project with effect from the start of a reporting period
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Division 3—Offsets integrity standards
133 Offsets integrity standards
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Part 10—Multiple project proponents
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Division 1—Introduction
134 Simplified outline
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Division 2—References to project proponents
135 References to project proponents
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Division 3—Nominee of multiple project proponents
136 Nomination of nominee by multiple project proponents
137 Service of documents on nominee
138 Eligible voluntary action taken by nominee
139 Unilateral revocation of declaration of eligible offsets project—failure of multiple project proponents to nominate a nominee
140 Designation of nominee account
141 Issue of Australian carbon credit units to nominee account
142 Units held in nominee account
143 Instructions in relation to nominee account
144 Updating nominee account details on change of nominee
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Division 4—Obligations of multiple project proponents
145 Obligations of multiple project proponents
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Part 11—Australian carbon credit units
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Division 1—Introduction
146 Simplified outline
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Division 2—Issue of Australian carbon credit units
147 Issue of Australian carbon credit units
148 How Australian carbon credit units are to be issued
149 Circumstances in which Australian carbon credit units may be issued
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Division 3—Property in, and transfer of, Australian carbon credit units
150 An Australian carbon credit unit is personal property
150A Ownership of Australian carbon credit unit
151 Transfer of Australian carbon credit units
152 Transmission of Australian carbon credit units by assignment
153 Transmission of Australian carbon credit units by operation of law etc.
154 Outgoing international transfers of Australian carbon credit units
155 Restrictions on outgoing international transfers of Australian carbon credit units
156 Transfer of Australian carbon credit units to another Registry account held by the transferor
157A Registration of equitable interests in relation to an Australian carbon credit unit
158 Equitable interests in relation to an Australian carbon credit unit
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Part 12—Publication of information
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Division 1—Introduction
159 Simplified outline
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Division 2—Information about units
160 Information about issue of Australian carbon credit units
161 Quarterly reports about issue of Australian carbon credit units
162 Publication of concise description of the characteristics of Australian carbon credit units
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Division 3—Information about units purchased by the Commonwealth
163 Information about carbon abatement purchasing processes
163A Annual reports about purchases of eligible carbon credit units
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Division 4—Information about relinquishment requirements
164 Information about relinquishment requirements
165 Information about unpaid administrative penalties
166 Information about number of relinquished units
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Division 4A—Information about Australia’s international obligations
166A Information about Australia’s international obligations
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Division 5—Emissions Reduction Fund Register
167 Emissions Reduction Fund Register
168 Entries in the Register
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Part 13—Fraudulent conduct
170 Simplified outline
171 Units issued as a result of fraudulent conduct—court may order relinquishment
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Part 15—Relinquishment of Australian carbon credit units
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Division 1—Introduction
174 Simplified outline
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Division 2—How Australian carbon credit units are relinquished
175 How Australian carbon credit units are relinquished
176 Deemed relinquishment
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Division 3—Compliance with relinquishment requirements
179 Compliance with relinquishment requirements
180 Late payment penalty
181 Recovery of penalties
182 Set off
183 Refund of overpayments
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Part 16—Information gathering powers
184 Simplified outline
185 Regulator may obtain information or documents
186 Copying documents—compensation
187 Copies of documents
188 Regulator may retain documents
189 Self incrimination
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Part 17—Record keeping and project monitoring requirements
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Division 1—Introduction
190 Simplified outline
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Division 2—Record keeping requirements
191 Record keeping requirements—general
192 Record keeping requirements—preparation of offsets report
193 Record keeping requirements—methodology determinations
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Division 3—Project monitoring requirements
194 Project monitoring requirements—methodology determinations
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Part 18—Monitoring powers
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Division 1—Simplified outline
195 Simplified outline
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Division 2—Appointment of inspectors and issue of identity cards
196 Appointment of inspectors
197 Identity cards
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Division 3—Powers of inspectors
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Subdivision A—Monitoring powers
198 Inspector may enter premises by consent or under a warrant
199 Monitoring powers of inspectors
200 Persons assisting inspectors
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Subdivision B—Powers of inspectors to ask questions and seek production of documents
201 Inspector may ask questions and seek production of documents
202 Self incrimination
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Division 4—Obligations and incidental powers of inspectors
203 Consent
204 Announcement before entry under warrant
205 Inspector to be in possession of warrant
206 Details of warrant etc. to be given to occupier
207 Expert assistance to operate electronic equipment
208 Compensation for damage to electronic equipment
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Division 5—Occupier’s rights and responsibilities
209 Occupier entitled to observe execution of warrant
210 Occupier to provide inspector with facilities and assistance
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Division 6—Monitoring warrants
211 Monitoring warrants
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Division 7—Powers of magistrates
212 Powers of magistrates
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Part 19—Audits
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Division 1—Introduction
213 Simplified outline
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Division 2—Audits
214 Compliance audits
215 Other audits
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Part 20—Liability of executive officers of bodies corporate
216 Simplified outline
217 Civil penalties for executive officers of bodies corporate
218 Reasonable steps to prevent contravention
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Part 21—Civil penalty orders
219 Simplified outline
220 References to Court
221 Civil penalty orders
222 Who may apply for a civil penalty order
223 Two or more proceedings may be heard together
224 Time limit for application for an order
225 Civil evidence and procedure rules for civil penalty orders
226 Civil proceedings after criminal proceedings
227 Criminal proceedings during civil proceedings
228 Criminal proceedings after civil proceedings
229 Evidence given in proceedings for a civil penalty order not admissible in criminal proceedings
230 Mistake of fact
231 State of mind
232 Continuing contraventions
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Part 22—Offences relating to administrative penalties
233 Simplified outline
234 Scheme to avoid existing liability to pay administrative penalty
235 Scheme to avoid future liability to pay administrative penalty
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Part 23—Enforceable undertakings
236 Simplified outline
237 Acceptance of undertakings
238 Enforcement of undertakings
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Part 24—Review of decisions
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Division 1—Introduction
239 Simplified outline
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Division 2—Decisions of the Regulator
240 Reviewable decisions
241 Applications for reconsideration of decisions made by delegates of the Regulator
242 Reconsideration by the Regulator
243 Deadline for reconsideration
244 Review by the Administrative Review Tribunal
245 Stay of proceedings for the recovery of an administrative penalty
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Part 26—Emissions Reduction Assurance Committee
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Division 1—Establishment and functions of the Emissions Reduction Assurance Committee
254 Emissions Reduction Assurance Committee
255 Functions of the Emissions Reduction Assurance Committee
255AA Request for review of methodology determinations
255A Crediting period extension reviews
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Division 2—Membership of the Emissions Reduction Assurance Committee
256 Membership of the Emissions Reduction Assurance Committee
257 Appointment of Emissions Reduction Assurance Committee members
258 Period for appointment for Emissions Reduction Assurance Committee members
259 Acting Emissions Reduction Assurance Committee members
260 Procedures
261 Disclosure of interests to the Minister
262 Disclosure of interests to Emissions Reduction Assurance Committee
263 Outside employment
264 Remuneration and allowances
265 Leave of absence
266 Resignation
267 Termination of appointment
268 Other terms and conditions
269 Assistance to Emissions Reduction Assurance Committee
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Part 27—Secrecy
270 Secrecy
271 Disclosure or use for the purposes of this Act or a legislative instrument under this Act
272 Disclosure to the Minister
273 Disclosure to the Secretary etc.
275 Disclosure to a Royal Commission
276 Disclosure to certain persons and bodies
277 Disclosure to certain financial bodies
278 Disclosure with consent
279 Disclosure to reduce threat to life or health
280 Disclosure of publicly available information
281 Disclosure of summaries or statistics
282 Disclosure for purposes of law enforcement—protected audit information
283 Disclosure for purposes of law enforcement—protected ERAC information
284 Disclosure for purposes of review of Act
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Part 28—Miscellaneous
286 Miscellaneous functions of the Regulator
287 Computerised decision making
288 Regulator’s power to require further information
289 Information previously given to the Regulator
290 Actions may be taken by an agent of a project proponent
291 Delegation by the Minister
292 Delegation by a State Minister or a Territory Minister
293 Delegation by the Secretary
294 Concurrent operation of State and Territory laws
295 Law relating to legal professional privilege not affected
296 Arrangements with States and Territories
297 Liability for damages
298 Executive power of the Commonwealth
299 Notional payments by the Commonwealth
300 Compensation for acquisition of property
301 Native title rights not affected
302 Racial Discrimination Act not affected
303 Alternative constitutional basis
304 Prescribing matters by reference to other instruments
305 Administrative decisions under the regulations
305A Administrative decisions under the legislative rules
306 Periodic reviews of operation of this Act etc.
307 Regulations
308 Legislative rules
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history