30 Day Series 20 by Zhang Kaihui

NAVIGATING THE

PATH TO NET ZERO

Carbon markets regulatory tracker

Q4 2023

Australian Carbon Exchange

CER anticipates that ACCUs will be launched in the new Unit Register



REGULATORY UPDATE

AUSTRALIAN LANDSCAPE

2023

GOVERNMENT

CARBON TRADING

CLIMATE DISCLOSURE

CARBON COMPLIANCE

REGULATOR

COMPANY

MILESTONE

WHO ACTS?

TOPIC AREAS

Carbon pricing mechanisms and regulatory frameworks play a pivotal role in incentivising businesses to reduce emissions and explore other techniques like storage. The ACCU Scheme and Safeguard Mechanism are among the more significant examples in Australia. Both schemes are under continuing consideration for refinement.

As Australia transitions to a low-carbon economy, carbon markets play an increasing role to help achieve net zero ambitions. Staying on top of deadlines and developments is essential.

As carbon regulation and reporting obligations increase, it’s critical to keep up with key dates: whether it’s a reporting deadline, a chance to submit to a policy review or a milestone change. Below is our tracker of key dates. This will evolve to keep you across the changes.


Please reach out to your KWM contact if we can assist on any of these topics. We are here to help.

6 May 2024

CP 378 Safeguard mechanism reforms: Updates to RG 236

Australian Securities & Investment Commission (ASIC) releases consultation paper to address safeguard mechanism reforms



REGULATORY UPDATE

12 July 2024

Proponent-led method development process EOIs on new method proposals in the first round are due to the Emissions Reductions Assurance Committee by 12 July 2024

August 2024

Release of Australian Government response to the Climate
Change Authority’s 2023 and 2020 Reviews of the Carbon Credits
(Carbon Farming Initiative) Act 2011

2024

Early 2024

Australian Carbon Exchange

CER anticipates that the Australian Carbon
Exchange will be launched



SCHEME LAUNCH

2025

In this evolving landscape, businesses need to stay informed, adapt to regulatory changes, and leverage carbon markets as an opportunity for both environmental stewardship and strategic advantage. As regulatory frameworks develop and progress in line with the increasing focus on sustainability and environmental responsibility, more deadlines and opportunities will arise.


Organisations are required to adopt stronger policies and practices and actively reduce emissions, or invest in carbon offset projects. As the voluntary carbon market gains traction, organisations must also demonstrate their commitment to carbon neutrality. Technology that enables more accurate measurement and reporting has amplified this.

Collaboration between the government and private sector is crucial for the success of carbon market initiatives, fostering innovation and driving economic growth in a sustainable direction.

What’s next?

With organisations urged to reduce emissions, engage in carbon offset markets and embrace sustainability, they need to proactively adopt technologies, collaborate with government initiatives and stay informed about regulatory changes. This will ensure compliance but also foster innovation and enhance your organisation’s reputation in the evolving low-carbon economy.


KWM is assisting organisations with their ESG strategies, including suitable regulatory policies and processes to ensure compliance but also to take advantage of the changes that lie ahead.


KWM KEY CARBON MARKETS CONTACTS

michael

lawson


Partner in charge

singapore

molly

su


Partner

shanghai

Ryan Iskander


SPECIAL COUNSEL

sYDNEY

Minny

siu


Partner

hong kong

DALE

RAYNER


PARTNER

sydney

Richard mazzochi


PARTNER

HONG KONG

SUODI

XI


Senior Associate

SHANGHAI

Selena

Liu


Senior ASSOCIATE

sydney

Claire

rogers


head of esg

sydney

MAX

ALLAN


PARTNER

SYDNEY