The Australian Government has introduced permanent exit arrangements for fixed delivery carbon abatement contracts. Find more information on the permanent exit arrangement and eligibility requirements.
The permanent arrangement was informed by public consultation and the results of 4 pilot exit windows run since 2022. It allows eligible sellers to deliver at least 25% of their outstanding Australian carbon credit units (ACCUs) and apply for the release of their remaining contracted volume, with a 60% reduction in exit payment fees. Outstanding ACCUs are calculated as at 1 January 2025. New arrangements commence 1 July 2026 and will conclude on 31 December 2030.
This new permanent arrangement aims to resolve the management of fixed delivery carbon abatement contracts by providing an alternative pathway for sellers to meet their obligations.
Importantly, these arrangements do not change how underlying ACCU Scheme projects are credited or the pace at which abatement is created. Whether ACCUs are delivered to government under the permanent exit arrangement or to another buyer, they contribute to market supply. This means that total ACCU supply will be unaffected by the arrangements.
We expect delivery and exit to occur gradually under the exit arrangements out to 2030. This provides a consistent, structured and orderly pathway for contract holders to meet obligations while offering greater flexibility in managing ACCUs they hold or expect to receive in future.
We will continue to report on contract delivery and ACCUs held by the government in the cost containment measure, including in Quarterly Carbon Market Reports (QCMRs), and publish the volume of ACCUs released under exit arrangements on the carbon abatement contract register to support transparency and inform market decisions.
