Norton Rose Fulbright Australia today released the Carbon
Farming Initiative (CFI) Legal and Contracts Guide, which is
The Guide has been developed with the support of funding from
the Australian Government, and draws upon our experience advising
on the CFI legislation and working with clients to develop and
implement CFI methodologies and projects. It builds on other
resources released on the CFI, including
our previous legal updates and Implementing the CFI from a
market perspective: a guide for business released by the
Carbon Market Institute and co-authored by Norton Rose Fulbright
and RAMP Carbon (see here).
For those not familiar with the CFI, it is a voluntary carbon
offset scheme which has now been in place for just over two years.
It provides opportunities for the land sector and landfill
operators to generate revenue by creating and selling carbon
credits (known as Australian Carbon Credit Units or ACCUs) from
projects which reduce greenhouse gas emissions or increase carbon
stored in vegetation or soils. As at December 2013, 101 CFI
projects had been declared and the Clean Energy Regulator had
issued over four million ACCUs from these projects.
With the release of the
Emissions Reduction Fund (ERF) Green Paper in December 2013,
the Australian Government has signalled its intention for the
proposed ERF, which forms a key component of its Direct Action
Plan, to be implemented through the existing CFI and Clean Energy
Regulator administrative arrangements. If these plans progress as
planned during 2014, the CFI is likely to take centre stage in
delivering carbon abatement to contribute to Australia's
emission reduction targets.
In this context, and as the CFI continues to evolve and the
market for ACCUs matures, the Guide will provide an integrated
single resource for all existing and potential CFI participants. It
aims to demystify the complexity of the CFI legislation, its
supporting regulations and methodologies, and the contractual
arrangements required for CFI transactions.
The Guide is divided into two parts:
Part A provides an explanation of the CFI legislation and the
legal steps for undertaking a project and receiving ACCUs.
Part B provides an overview of the types of contracts which CFI
participants or purchasers of ACCUs may need to enter into, and
explains some of the standard contract terms which may be included
in a contract to buy and sell ACCUs.
The Guide will play a key role in helping you to understand the
CFI and to maximise your commercial opportunities and environmental
outcomes as the carbon policy landscape and the CFI develops over
the coming 12 months and beyond.
We will be holding a series of workshops on the Guide in capital
cities around Australia, as follows:
Sydney Wednesday 26 February 2014
Melbourne Thursday 27 February 2014
Brisbane Thursday 6 March 2014
Perth Thursday 13 March 2014
Please email Leanne
Currie if you would like to pre-register to attend one of these
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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