The Australian Government is implementing permanent exit arrangements for fixed delivery carbon abatement contracts.
A carbon abatement contract is a commercial agreement to sell Australian carbon credit units (ACCUs) to the Australian Government. Under a fixed delivery contract, participants sell a fixed number of ACCUs to the government at a set price over a defined period.
We have been trialling fixed delivery exit arrangements since 2022. Under these arrangements, sellers had the option to make an exit payment instead of delivering ACCUs under their contract.
The new permanent fixed delivery exit arrangement will apply to all deliveries from 1 January 2025, with applications open from 1 July 2026. This aims to resolve the management of fixed delivery carbon abatement contracts by providing an alternative pathway for sellers to meet their obligations.
The new permanent exit arrangement allows eligible sellers to apply to fulfill their contractual obligations by receiving a 60% discount on their exit payment after they deliver at least 25% of the outstanding volume of ACCUs (as at 1 January 2025).
This discount recognises that market and policy settings have changed since the introduction of carbon abatement auctions and fixed delivery contracts in 2015.
Find more information on eligibility requirements for fixed delivery carbon abatement contract holders.
Sellers may continue delivering ACCUs under contract and receive the agreed contract price.
In the coming month, sellers and authorised representatives will receive an email with instructions on submitting an expression of interest (EOI) to participate in the permanent exit arrangement.
