ACC-U Later: Second Window Now Open to Exit Fixed Delivery Carbon Abatement Contracts

In August, we shared an overview of the Clean Energy Regulator’s proposal to allow contract holders to exit Fixed Delivery Carbon Abatement Contracts with the Commonwealth Government.

If you missed that article, click here for a complete list of the eligibility criteria and steps to participate.

The first “pilot” exit window closed on 30 June 2022. As at 11 October 2022, the Clean Energy Regulator has reported over 2.6 million Australian Carbon Credit Units (ACCUs) had been released under exit arrangements.

Those ACCUs will instead be traded at spot market prices.

Following the pilot, a second exit window is now open.

Exit applications for the second window must be submitted before 11:59pm on Tuesday, 14 February 2023 (AEDT).

For those interested in applying, a reminder that in determining eligibility for the exit arrangements, the Clean Energy Regulator will assess and consider:

• milestone delivery dates;
• the seller’s compliance with their contract;
• whether the Seller is in good standing with the CER; and
• the benefit sharing framework.

Any proposed benefit sharing agreements proposed by third party service providers should be considered carefully before a landowner signs.

Thynne + Macartney Agribusiness Partner, Alex Ramsey and Special Counsel, Hannah Barbour are approved Carbon Advisors under the Land Restoration Fund and are available to help contract holders navigate their exit arrangements.