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Australia's Carbon Market Proposal Faces Industry Backlash Over New Regulations

CLIMATE POLICY, REGULATION & CARBON MARKETS

The Australian Federal Government's draft for the Integrated Farm and Land Management methodology has faced criticism from the carbon industry, particularly from Upscale Carbon, which warns that the proposed changes could make most carbon projects commercially unviable. Key changes include shifting measurement from canopy cover to woody biomass and extending the historical record-keeping requirement from 10 to 20 years.

The new rules may restrict project eligibility and increase the percentage of Australian Carbon Credit Units held back from 5% to 50-65%, diminishing financial returns for landholders. The introduction of stringent monitoring for leakage and additionality measures further complicates project implementation, raising concerns over industry sustainability.

Australia's Carbon Market Proposal Faces Industry Backlash Over New Regulations
Mar 2, 2026, 1:46 PM

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