Carbon credits play an important role in offsetting emissions that cannot be reduced.

Previously, the Government was essentially the monopoly buyer of ACCUs through the ERF - making up 89% of demand.

Powering Australia will unlock private demand for ACCUs through improvements to the Safeguard Mechanism.

The Powering the Regions Fund will also remain able to purchase ACCUs on behalf of the Commonwealth.

Powering Australia’s changes will improve the functioning of the market.

While Labor supports the huge potential of carbon markets, concerns have been raised around the integrity of ACCUs and their consistency with agricultural and other objectives.

Building on the King Review, the Albanese Labor Government will undertake a short review into ACCUs to ensure their integrity, consistency with agricultural and other objectives, and contribution to environmental, economic and other benefits like biodiversity.

The increasing private demand provides the opportunity to ensure ACCUs deliver benefits to all Australians.