Joint media release: Beefing up carbon credits for Aussie livestock farmers

The Hon Julie Collins MP, Minister for Agriculture, Fisheries and Forestry
The Hon Josh Wilson MP, Assistant Minister for Climate Change and Energy

The Albanese Labor Government is working with industry to design a new Australian Carbon Credit Unit (ACCU) Scheme livestock method that will enable farmers to diversify their income through herd management practices that reduce methane emissions.

The Government has prioritised development of the new livestock method, which is being developed by Meat and Livestock Australia, to replace the expired Beef Cattle Herd Management method.

The Beef Cattle Herd Management method allowed beef producers to earn ACCUs by reducing the emissions intensity of beef production through improved herd management, rather than by reducing total cattle numbers. It expired on 30 September 2025 after 10 years of operation.

If made, the new ACCU livestock method will build on the previous method to include the newest science on methane reducing feed additives and expand beyond pasture-based cattle to include feedlot cattle, dairy cattle and sheep.

Herd management practices used to reduce methane include improving the digestibility of feed, enhancing herd fertility, pasture and manure management, and exploring the use of methane inhibiting feed additives for livestock.

Once developed, the Emissions Reduction Assurance Committee (ERAC) will assess the new livestock method against the legislated Offsets Integrity Standards and provide its advice for consideration.

No new projects can be registered under the expired Beef Cattle Herd method, but existing projects may continue to generate ACCUs until the end of their crediting periods.

To drive scientific innovation and develop the evidence base for methane reducing feed additive technologies such as Asparagopsis seaweed and 3-NOP, the Albanese Government has invested $29 million through the Methane Emissions Reduction in Livestock program.

An additional $6.2 million was spent through the Developing Australia’s Seaweed Farming grant program to support industry-led efforts to scale up commercial production of Asparagopsis seaweed as a methane inhibiting livestock feed supplement.

Quotes attributable to Minister for Agriculture, Fisheries and Forestry Julie Collins:

“We’re backing Australian farmers with a flexible and cost-effective way to reduce emissions, while providing opportunities to improve yield and diversify on-farm income.

“Industry has signalled strong interest in replacing the Beef Cattle Herd Management method with a new method that recognises emerging methane reduction technologies across the broader livestock sector.

“Through this updated ACCU method, we have an opportunity to move toward a sector-wide livestock method that allows greater innovation in mitigation technologies and rewards farmers.

“More broadly, the government has committed over $2 billion to ensure farmers across the country can confidently face our climate future.”

Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson:

“The government is working with industry to design a next-generation livestock ACCU method that supports emissions reduction, while safeguarding ACCU market integrity and public confidence.

“We want to make sure there’s greater emphasis on direct methane abatement, with clearer and verifiable causal links between actions taken on the farm and emissions reduced based on enhanced monitoring and reporting.

“The new method delivers on this goal, advancing the government’s commitment to reforms towards a high-integrity carbon trading system in keeping with the Chubb Review recommendations.”