What Are Carbon Credits?

What Are Carbon Credits?

Carbon credits are a way of recognising and rewarding activities that reduce greenhouse gas emissions or remove carbon dioxide from the atmosphere.

In Australia, an Australian Carbon Credit Unit (ACCU) represents one tonne of carbon dioxide equivalent (CO₂-e) that has either been stored or prevented from being released through an approved carbon farming project. These projects might involve restoring native forests, improving soil carbon, managing savanna fire, planting trees or reducing livestock emissions.

Carbon credits play an important role in Australia’s transition to a low-emissions economy. They provide land managers with an additional income stream while encouraging land management practices that improve landscape health, biodiversity and long-term resilience.

Every ACCU is issued under the Australian Carbon Credit Unit Scheme, administered by the Clean Energy Regulator. Projects must follow approved methods, undergo independent auditing and demonstrate that carbon outcomes are real, measurable and additional.

At Climate Friendly, we work alongside land managers throughout the entire project lifecycle—from feasibility and project design through to monitoring, reporting and carbon credit issuance. Our focus is on helping partners deliver high-integrity carbon outcomes that create lasting environmental, social and economic benefits.