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Green Futures: Australia's Budget Boosts Carbon Market and Launches Nature Positive Plan

In last night’s federal budget, significant updates were announced concerning the Australian Carbon Credit Unit scheme and the launch of the Nature Positive Plan. These initiatives are designed to strengthen the carbon market and encourage environmental restoration.


Enhancements to the Australian Carbon Credit Unit Scheme:

The government has committed an additional $48.0 million over four years starting from 2024–25 to implement crucial reforms following the Independent Review of the Australian Carbon Credit Unit scheme. Key reforms include:


  • The establishment of the Carbon Abatement Integrity Committee, which will oversee a new proponent-led method development process, enhancing the scheme's integrity and transparency.

  • The introduction of measures to support First Nations participation, particularly in the consent processes for projects on Native Title land. This is a significant step towards inclusive and equitable environmental management.


Funding for the Nature Positive Plan:

The government has also allocated $40.9 million over two years from 2024-25 to further the Nature Positive Plan, which aims to enhance environmental outcomes while benefiting business sectors. The funding distribution includes:


  • $17.6 million to establish and begin operations of the Nature Repair Market by the Department of Climate Change, Energy, the Environment, and Water.

  • $14.0 million for the Clean Energy Regulator to administer the Nature Repair Market, ensuring effective participation and oversight.

  • $5.3 million allocated in 2024-25 for progressing necessary legislative reforms to support the plan's initiatives.

  • $4.1 million to promote voluntary engagement with the Nature Repair Market and encourage nature-related reporting by businesses.


These financial commitments highlight the government's proactive approach to environmental management, aiming to create a sustainable balance between economic development and nature conservation. The establishment of the Nature Repair Market is particularly noteworthy as it introduces a novel platform for businesses to contribute to environmental restoration efforts, potentially setting a new standard for corporate environmental responsibility.


These initiatives represent a strategic expansion of Australia's environmental policy framework, promising to enhance the integrity of the carbon market and drive significant contributions towards global and national environmental targets.


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