New Carbon Credit Rules Open Doors for Farmers and First Nations Land Managers
The Federal Government has unveiled a significant update to Australia’s carbon credit framework, creating new financial opportunities for the agriculture and waste sectors while recognising millennia-old First Nations land management practices. In an announcement on April 10, 2026, Climate Change and Energy Minister Chris Bowen introduced two new and two updated methods for generating Australian Carbon Credit Units (ACCUs).
The policy changes are designed to expand pathways for businesses, farmers, and communities to diversify their income by undertaking projects that reduce or remove greenhouse gas emissions, contributing to Australia’s 2050 net-zero target. The updates focus on savanna fire management, livestock emissions, and waste recovery, while strategically phasing out support for coal mine waste gas projects.
First Nations Knowledge at the Core of New Savanna Methods
A key feature of the announcement is the introduction of two new savanna fire management methods, which for the first time will credit the carbon stored in dead organic matter. These methods are built upon traditional First Nations land stewardship, which uses low-intensity, controlled burns early in the dry season.
This long-practised technique prevents the outbreak of destructive, high-intensity bushfires later in the season. The cooler, managed fires release significantly fewer emissions and help maintain carbon stored in the landscape. The new methods—one for sequestration and emissions avoidance, and another for emissions avoidance alone—incorporate the latest science and formally recognise this traditional knowledge as a critical tool in climate action.
“It’s great to see two new ACCU methods that account for the huge scope of carbon retained by careful savanna fire management,” Minister Bowen stated in the official release.
Fresh Opportunities in Agriculture and Waste
The government is also remaking two expired methods to align with new scientific developments, directly impacting farmers and waste management operators. The updated Livestock method will now aim to include the use of new feed additives that can significantly reduce the amount of methane produced by livestock. This change is poised to create a valuable new revenue stream for Australian farmers, offering a buffer against market and climate volatility.
Simultaneously, the Alternative Waste Treatment method is being updated to better incentivise the diversion of mixed solid waste from landfill. This will support the growth of a circular economy by encouraging the production of useful products like fertiliser and biofuels from waste that would otherwise generate methane.
A Policy Shift Away From Coal Mine Gas
In a notable policy shift, the government confirmed that the expired Coal Mine Waste Gas (CMWG) method will not be remade. The decision reflects the declining environmental value of these projects as Australia’s electricity grid increasingly decarbonises.
The government’s reasoning is that the Safeguard Mechanism, which puts a hard cap on emissions from Australia’s largest industrial polluters, now provides a sufficient incentive for coal mines to manage their waste gas emissions. Existing CMWG projects will be allowed to continue earning ACCUs for the remainder of their crediting periods, but no new projects will be registered under the old method.
These reforms signal a clear focus on driving emissions reductions in sectors like agriculture and land management, which have historically been difficult to decarbonise. By creating robust, science-backed methods for generating carbon credits, the government aims to unlock private investment and empower local communities to participate directly in Australia’s energy transition.