The federal government is now seeking proposals for new Australian Carbon Credit Unit (ACCU) Scheme methods as part of a new proponent-led process.
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The new process will see ACCU Scheme methods developed outside of government - a critical step in the ongoing reforms to Australia's carbon crediting system.
Interested individuals, groups or organisations can now submit a method proposal for carbon abatement that would be achieved by avoiding emissions or storing carbon in natural systems.
The independent Emissions Reduction Assurance Committee will assess all proposals for new methods and advise the government on which proposals should be prioritised for development.
Climate change and energy minister Chris Bowen said the proponent-led approach would ensure the ACCU Scheme continues to deliver high-integrity emissions reduction.
"We're bolstering the integrity of Australia's carbon crediting scheme and delivering on recommendations from the independent Chubb Review." he said.
"Public confidence in the integrity of ACCUs is critical to the success of Australia's carbon market and this calls for a more inclusive and transparent process for method development.
"The proponent-led model aims to encourage more innovative approaches to carbon abatement and will help to boost the supply of ACCUs to support our net zero ambition."
Farmers for Climate Action has "cautiously" welcomed the move, urging the government to prioritise the "integrity" of any new carbon methodology.
Community outreach officer Peter Holding said a "dodgy methodology" could cost families if it caused the carbon market to crash.
"Having stakeholders including farmers suggest carbon credit methods can be a good move, so long as the carbon reduction is real," he said.
"We must remember the best way to reduce carbon pollution is at the source, and our key aim must be for polluters to reduce their pollution, not continue to pollute whilst paying for carbon credits.
"Taking the politics out of the process is a good move. Having farmers and stakeholders submit suggested carbon methods is much better than the minister of the day choosing which methods would be assessed."
The ACCU Scheme supports progress towards Australia's targets of a 43 per cent emissions reduction by 2030 and net zero by 2050.
The latest budget saw invested $48 million to continue essential reforms to the scheme, including to implement the new proponent-led process, building on the previous budget's $18.1 million allocation.
It also included $12.2 million to support First Nations peoples to participate in upfront consent negotiations for ACCU projects.
