Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026: the private bill challenging the Great Koala National Park carbon methodology

The short answer

Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026: the private bill challenging the Great Koala National Park carbon methodology

The Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026 is a private member's bill introduced by independent MP Alison Penfold on 22 June 2026. According to the official summary on the Parliament bill page, the bill amends the Carbon Credits (Carbon Farming Initiative) Act 2011 to require the Minister to consider additional matters before making or varying a methodology determination for a carbon offset project. The bill specifically responds to the New South Wales government's proposed improved native forest management (INFM) methodology, which Penfold argues would generate carbon credits by ceasing timber harvesting in forests already earmarked for the Great Koala National Park — a policy commitment that predates the carbon methodology. The bill is before the House of Representatives as of 10 August 2026 and has not yet been debated.

This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.

The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.

Evidence review

The ACCU scheme and the INFM methodology dispute

The Australian Carbon Credit Unit scheme, established under the Carbon Credits (Carbon Farming Initiative) Act 2011, allows land managers to earn credits for reducing greenhouse gas emissions or storing carbon. Methodologies for generating ACCUs are assessed under the statutory framework before a determination is made. The dispute at the centre of this bill concerns an improved native forest management methodology proposed by the NSW Minns government for selected multiple-use public native forests.

The INFM methodology is intended to provide a funding mechanism for the Great Koala National Park, a signature environmental commitment of the Minns government. The park's creation is contingent upon the successful registration of this methodology. The Carbon Market Institute's taskforce reviewed the draft methodology and concluded it could present material risks to the integrity of the ACCU scheme. The Australian Forest Products Association separately urged the federal government to withdraw support.

Evidence review

The additionality problem

Penfold's central argument is that the proposed methodology fails the additionality test — a foundational principle of the ACCU scheme requiring that carbon credits be awarded only where the carbon benefit would not otherwise have occurred. The Great Koala National Park was an election commitment made before the carbon methodology emerged. In her second reading speech, Penfold told the House: 'If the government had already decided to create the Great Koala National Park and cease timber harvesting in these forests, then a very obvious question arises: what exactly is the ACCU scheme paying for?'

She identified what she characterised as a contradiction: the Minns government says the park is contingent upon approval of the carbon project, but if that is the case, the government announced one of the largest conservation projects in NSW history before securing a credible funding model. If the park was always going to proceed regardless, Penfold argued, the additionality case is extraordinarily difficult to sustain.

Evidence review

Impact on forestry workers and regional communities

Penfold, who represents the electorate of Lyne on the NSW North Coast, told Parliament that forestry directly employs more than 5,500 people in the region and contributes significantly to regional economies through direct employment, contractor work, transport and processing. For towns such as Wauchope, Kempsey and Taree, the forestry industry is not just an employer but a foundational part of the local economic and social fabric.

She argued the Minns government has created uncertainty for conservationists, forestry workers and regional communities alike by making the park's viability dependent on a carbon revenue stream that has not yet been approved and that leading experts say contains fundamental flaws. Forestry workers and their families, she said, were being asked to live with years of uncertainty about whether their jobs would continue while the government waited for a methodology that might never be approved. Penfold called this approach unfair to communities that deserved clarity about their future.

Evidence review

What the bill seeks to do

The bill amends the Carbon Credits (Carbon Farming Initiative) Act 2011 to require the Minister to consider additional matters before making or varying a methodology determination for a carbon offset project, according to the official summary on the Parliament bill page. The amendment is targeted — it does not rewrite the entire ACCU framework but adds matters the Minister must weigh when deciding whether to make or vary a methodology determination.

The bill is framed as protecting the integrity of the ACCU scheme rather than opposing the Great Koala National Park itself. Penfold explicitly acknowledged that many people across the North Coast genuinely support the creation of the park, including conservation groups that have campaigned for it for years. However, she argued that supporters should be asking serious questions about the funding model and whether the ACCU scheme is the appropriate mechanism. The bill's language is carefully drafted to focus on methodology integrity rather than the merits of the park, a distinction that may be important for attracting broader parliamentary support.

Evidence review

Current status

The bill was introduced and read a first time in the House of Representatives on 22 June 2026, with the second reading moved the same day and debate adjourned. As of 10 August 2026 it remains before the House of Representatives. As a private member's bill without government or opposition sponsorship, its direct prospects of passage are limited, though it could influence the policy debate about the ACCU scheme's integrity even without passing.

The bill has not been referred to a committee as at 10 August 2026. However, the methodology assessment process under the existing Act will proceed regardless of the bill's parliamentary progress, and its handling of the NSW INFM methodology will be watched by stakeholders. Those watching this space should monitor both the bill's parliamentary progress and the statutory assessment of the methodology, as the two processes — one legislative, one regulatory — will interact in shaping the outcome for the Great Koala National Park's funding model.

Common questions

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