This bill is currently before Parliament.
Climate, energy & environment
People proposing carbon-credit methods would need to show the method fully matches the law’s aims before the minister could approve it.
The evidence pack does not contain a government rationale. Alison Penfold (National Party), the bill’s sponsor, said it would protect the Australian Carbon Credit Unit scheme, which rewards projects that cut emissions or store carbon. She argued a proposed method for funding the Great Koala National Park might reward a decision already made, rather than create extra carbon savings. She also said North Coast forestry directly employs more than 5,500 people, contributes about $2.9 billion a year, and faces a harvesting pause covering about 176,000 hectares.
Since the Carbon Credits (Carbon Farming Initiative) Act 2011 established the ACCUA credit for cutting emissions or storing carbon. scheme, uncertainty about carbon-farming credits, policy changes that raised sovereign-risk warnings, and the 2023 Chubb review—following whistleblower claims—have tested confidence in whether credits represent genuine, additional abatement. Against that background, a proposed native forest management method linked to the Great Koala National Park and a September 2025 harvesting moratorium intensified concerns about integrity and regional jobs, prompting Alison Penfold MP’s 22 June 2026 private member’s bill to strengthen ERAC screening and require public scrutiny before methodologies are approved.
The evidence pack contains no speech criticising the bill itself. It contains only Alison Penfold’s speech supporting her bill and criticising the proposed forest carbon-credit methodRules for measuring a project’s carbon savings..
Alison Penfold MP introduced this bill. Supportive speeches so far have come from Nationals.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
46 days
Updated 07 Aug 2026.
Meaning
People proposing carbon-credit methods would need to show the method fully matches the law’s aims before the minister could approve it.
The public would receive all relevant documents, computer modelling and science for consultation before a carbon-credit methodRules for measuring a project’s carbon savings. could be approved.
Applicants could have proposals rejected when they may not meet the scheme’s rules for trustworthy carbon credits.
People with existing applications would also be covered, because the changes would apply to applications made before or after they begin.
People affected by the changes would see them begin the day after the law receives Royal AssentThe formal approval that makes a bill law..
1 After subsection 106(4AA) (4AB) The Minister must not make a methodology determination unless the Minister is satisfied that: (a) the determination is fully consistent with the objects of this Act; and (b) all documentation, modelling and science relevant to the determination was made available for public consultation to allow proper scrutiny.Carbon Credits (Carbon Farming Initiative) Amendment introduced text
1 After subsection 106(4AA) (4AB) The Minister must not make a methodology determination unless the Minister is satisfied that: (a) the determination is fully consistent with the objects of this Act; and (b) all documentation, modelling and science relevant to the determination was made available for public consultation to allow proper scrutiny.Carbon Credits (Carbon Farming Initiative) Amendment introduced text
2 Subsection 106(4B) After “does not comply”, insert “, or may not comply,”. 3 Subsection 123A(3) Omit “complies with the offsets integrity standards”, substitute “may not comply with the offsets integrity standards”.Carbon Credits (Carbon Farming Initiative) Amendment introduced text
4 Application of amendments The amendments made by this Schedule apply in relation to an application under section 22 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (application for declaration of eligible offsets project) made before or after the commencement of this item.Carbon Credits (Carbon Farming Initiative) Amendment introduced text
2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Commencement Date/Details 1. The whole of this Act The day after this Act receives the Royal Assent.Carbon Credits (Carbon Farming Initiative) Amendment introduced text
Context
Since the Carbon Credits (Carbon Farming Initiative) Act 2011 established the ACCUA credit for cutting emissions or storing carbon. scheme, uncertainty about carbon-farming credits, policy changes that raised sovereign-risk warnings, and the 2023 Chubb review—following whistleblower claims—have tested confidence in whether credits represent genuine, additional abatement. Against that background, a proposed native forest management method linked to the Great Koala National Park and a September 2025 harvesting moratorium intensified concerns about integrity and regional jobs, prompting Alison Penfold MP’s 22 June 2026 private member’s bill to strengthen ERAC screening and require public scrutiny before methodologies are approved.
The Carbon Credits Act establishes the ACCUA credit for cutting emissions or storing carbon. scheme
The Carbon Credits (Carbon Farming Initiative) Act 2011 created the framework for land managers and other project proponents to earn Australian Carbon Credit Units for reducing emissions or storing carbon.
Hansard ↗Uncertainty limits take-up of carbon-farming credits
A Sydney Morning Herald report said uncertainty about the carbon-farming scheme was limiting farmers’ willingness to participate.
Sydney Morning Herald ↗Carbon-credit policy shake-up raises sovereign-risk warnings
ABC reported that departmental documents warned a pre-election carbon-credit shake-up could damage future carbon-removal projects and create sovereign risk.
ABC News ↗Chubb review leaves doubts about carbon credits
After whistleblower claims that the system was being rorted, the Chubb review prompted farmers and businesses relying on offsets to reassess the scheme while the market remained steady.
ABC News ↗Harvesting moratorium begins in forests earmarked for the Great Koala National Park
The New South Wales government imposed a moratorium across about 176,000 hectares of state forest, with the bill’s sponsor saying workers had already lost jobs and mills were under severe strain.
Second reading speech ↗Alison Penfold MP introduces the bill to tighten carbon-credit scrutiny
Alison Penfold MP introduced the private member’s bill in response to a proposed native forest management method under ERAC consideration, seeking stronger screening and public scrutiny before approval.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The evidence pack contains no speech criticising the bill itself. It contains only Alison Penfold’s speech supporting her bill and criticising the proposed forest carbon-credit methodRules for measuring a project’s carbon savings..
Penfold cited concerns from the Carbon Market Institute, a carbon-market industry body, and the Australian Forest Products Association, a forestry industry body. No response from the method’s supporters or another party is included.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Penfold supports the bill because she says it will protect the carbon credit scheme by ensuring credits are awarded only for genuine, additional emissions reductions and preventing a proposed forest method from funding a pre-existing political commitment.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“In conclusion, this bill seeks to strengthen transparency, reinforce integrity and ensure that ACCUs are awarded only where they represent genuine and additional carbon abatement. The park does not meet this threshold and the methodology must not be approved, with my bill or not. I dedicate this bill to every forestry worker and timber mill worker, every person who has lost their job and every worker still fighting to keep one. I also dedicate it to the timber mills and supporting businesses in my electorate, those in Karuah, Booral, Bulahdelah, Pampoolah, Wingham, Kendall, Herons Creek and my friends north from Gum Scrub. You have been treated appallingly by the Minns Labor government. I will always stand with you. I commend this bill to the House.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
