Carbon Credits

Generation - How does it work?

ALFA’s five offsets projects generate carbon credits through Federal Government legislation focused on carbon farming. Specifically, the Carbon Credits (Carbon Farming Initiative—Emissions Abatement through Savanna Fire Management) Methodology Determination 2015.

The Clean Energy Regulator issues Australian Carbon Credit Units (ACCUs) for greenhouse gas abatement activities undertaken as part of the Emissions Reduction Fund, a federal scheme that provides financial incentives to organisations and individuals to reduce their greenhouse gas emissions and improve their energy efficiency.

Each carbon credit unit represents one tonne of carbon dioxide equivalent net abatement (through either emissions reductions or carbon sequestration) achieved by eligible activities undertaken as eligible offsets projects.

The issuance of ACCUs is governed by the CFI Act 2011, the Carbon Credits (Carbon Farming Initiative) Regulations 2011 (CFI Regulations 2011) and the Carbon Credits (Carbon Farming Initiative) Rule 2015 (CFI Rule 2015).

The following table outlines the total amount of carbon abated by ALFA projects since company began:

FIRE PROJECT DATE REGISTERED PROJECT AREA (km²) Ranger Groups Involved ACCU Issuance To Date
WALFA 24/12/2014 28,000 km² Bawinanga Rangers
Mimal Rangers
Jawoyn Rangers
Warddeken Rangers
Adjumarllarl Rangers
CALFA (WALFA2) 23/12/2014 26,000 km² Bawinanga Rangers
Mimal Rangers
Arafura Swamp Rangers
SEALFA (>1000 mm) 18/08/2015 5,000 km² Yugul Mangi Rangers
SEALFA Stage 2 (600-1000 mm) 28/01/2016 10,000 km² Yugul Mangi Rangers
NEALFA 11/09/2016 11,000 km² Yirralka Rangers


The production of Australian Carbon Credit Units is highly regulated to ensure that emissions reductions are genuine, additional to business-as-usual and can be counted towards Australia’s emissions reduction targets.

There are a number of requirements that must be satisfied before a project can be declared an ‘eligible offsets project’, and there are ongoing requirements in undertaking an eligible offsets project.

These requirements include:

  • The project proponent must pass a ‘fit and proper person test’.
  • There must be an approved methodology for the type of project.
  • The project must deliver abatement that is additional to what would occur in the absence of the project.
  • The project must meet the applicable additionality requirements.
  • The project must be undertaken in accordance with the methodology and comply with other scheme eligibility requirements.
  • The project proponent must report to the Regulator about the conduct of the project and the abatement achieved. Certain reports must be accompanied by a report prepared by a registered greenhouse and energy auditor.