Post by Carbon Eyes

𝗔𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆: 𝗮 𝗰𝗼𝗿𝗻𝗲𝗿𝘀𝘁𝗼𝗻𝗲 𝗼𝗳 𝗰𝗮𝗿𝗯𝗼𝗻 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 One of the key concepts underpinning the ACCU scheme, and most other carbon markets around the world, is 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆. In simple terms, additionality means that carbon credits should only be issued where a project’s abatement would be 𝘂𝗻𝗹𝗶𝗸𝗲𝗹𝘆 𝘁𝗼 𝗼𝗰𝗰𝘂𝗿 in the ordinary course of events, without the financial incentive created by the scheme. The importance and complexity of this principle has been highlighted in recent weeks: 🔵 An Australian company has proposed issuing non-ACCU carbon credits for activities such as 𝗘𝗩 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 and residential 𝘀𝗼𝗹𝗮𝗿 𝗶𝗻𝘀𝘁𝗮𝗹𝗹𝗮𝘁𝗶𝗼𝗻𝘀, prompting scrutiny over whether those activities would occur regardless of credit incentives. 🔵 The Victorian Government has launched a 𝘁𝗿𝗲𝗲-𝗽𝗹𝗮𝗻𝘁𝗶𝗻𝗴 𝗴𝗿𝗮𝗻𝘁 𝗽𝗿𝗼𝗴𝗿𝗮𝗺 that explicitly advises applicants who wish to use the grant to help cover the costs of a carbon project to apply for funding 𝗔𝗙𝗧𝗘𝗥 registering an ACCU Environmental Plantings project, raising questions about how government support interacts with additionality tests. The thinking behind the Victorian grant advice is driven by Clean Energy Regulator guidance which states that proponents should not make a final investment decision about a carbon project before it has been successfully registered; receiving a grant before registering a project may be treated as evidence that such a decision has already been made. We have seen examples of 𝗔𝗖𝗖𝗨 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 that illustrate how carefully additionality must be managed in practice, including a reforestation project announced in 2022 (without reference to ACCUs) and later announced as an ACCU EP project in late 2025, and carbon companies and projects receiving grants under the $𝟳𝟯𝗺 𝗦𝘂𝗽𝗽𝗼𝗿𝘁 𝗣𝗹𝗮𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗺𝗲𝗻𝘁 program to establish new plantations. This does not mean such projects fail additionality tests, but it highlights how 𝗰𝗮𝗿𝗲𝗳𝘂𝗹𝗹𝘆 additionality must be defined and applied in practice. #Additionality #ACCU #CarbonMarkets #CarbonCredits #ClimatePolicy #EnvironmentalPlantings #Forestry #CarbonIntegrity #NetZero #SustainableFinance