IMPORTANT INFORMATION ABOUT THIS GUIDE
The Clean Energy Regulator is updating the information in this guide to
align it with theINFORMATION
Emissions ReductionABOUT
Fund. THIS GUIDE
IMPORTANT
The Clean Energy Regulator is updating the information in this guide to align it with the
While the information in this guide about the Avoided Deforestation
Emissions Reduction Fund.
method is current, and may be used to help you read and understand the
method
and its explanatory
statement,
general
information
about method
how to is current, and
While
the information
in this guide
about the
Avoided
Deforestation
participate
the Emissions
Reduction
Fundthe
requires
updating.
may
be used toinhelp
you read and
understand
method
and its explanatory statement,
general information about how to participate in the ERF requires updating.
For general information about how to participate in the Emissions
Fund pleaseabout
see Participating
in the Emissions
Reduction
Fund –Fund please
ForReduction
general information
how to participate
in the Emissions
Reduction
startedinand
in the Emissions
Reduction
Fundand
– Participating in the
seeGetting
Participating
theParticipating
Emissions Reduction
Fund – Getting
started
Claiming
and selling
ACCUs.
Emissions
Reduction
Fund
– Claiming and selling ACCUs.
The Emissions Reduction Fund
The Emissions Reduction Fund is a voluntary scheme that aims to reduce Australia’s greenhouse gas
emissions by providing incentives for a range of organisations and individuals to adopt new
practices and technologies to reduce their emissions.
A number of activities are eligible under the scheme and individuals and organisations taking part
may be able to earn Australian carbon credit units (ACCUs). One ACCU is earned for each tonne of
carbon dioxide equivalent (tCO2-e) stored or avoided by a project. ACCUs may be sold to generate
additional income, either to the Government through a Carbon Abatement Contract or on the
secondary market.
Emissions Reduction Fund projects must be conducted according to an approved method.
Approved methods include all Emissions Reduction Fund methods and all original Carbon Farming
Initiative methods.
Why participate?
As well as contributing to Australia’s efforts to reduce the amount of greenhouse gas entering the
atmosphere and the opportunity to earn ACCUs, running an Emissions Reduction Fund project may
offer a range of other benefits for scheme participants. Examples include increases in biodiversity,
better air quality, reduced energy consumption or income from electricity generation exported into
the grid.
Using this guide
This guide is a guide to using the Carbon Credits (Carbon Farming Initiative—Avoided Deforestation)
Methodology Determination 2013, which you can access through the Clean Energy Regulator
website. Methods set out the rules for conducting activities under the Emissions Reduction Fund to
earn ACCUs.
The guide is one of a set of guides called Participating in the Emissions Reduction Fund. One guide,
Getting Started, provides an overview of the Emissions Reduction Fund – how it works and what
you need to know to get started. The guide Claiming and selling ACCUs, provides more detail about
reporting and auditing requirements as well as auctions, contracts with the Commonwealth
Government and selling your ACCUs. Other guides in the set are like this one: designed to provide a
summary to help you read individual methods.
Together, the guides will help you understand what is involved in conducting an Emissions
Reduction Fund project from start to end. The guides are complementary to the Carbon Credits
(Carbon Farming Initiative) Act 2011, the associated legislative rules, approved methods and their
explanatory statements, but do not replace them. They have been prepared by the Clean Energy
Regulator, an independent Australian statutory authority responsible for administering legislation
to reduce carbon emissions and increase the use of clean energy.
A guide to the Avoided Deforestation method
2
Overview of an Avoided Deforestation project
An Avoided Deforestation project protects native forest from clearing. In doing so, the project helps
to reduce the amount of greenhouse gas entering the atmosphere because carbon remains stored
in the trees. The carbon stored is called carbon stock, while the term ‘abatement’ refers to the net
reduction in greenhouse gas emissions as a result of a project. You can earn ACCUs for the amount
of emissions you store, or sequester, by running an Avoided Deforestation project.
Avoided Deforestation projects use a series of measurements that require collecting and analysing
samples taken from the forest. The information from the samples is used to calculate how much
carbon is stored in the forest as a result of the project. Collection and analysis of the samples should
be conducted by technical experts to ensure accuracy of measurements. It is recommended the cost
of this service is considered when working out the feasibility of conducting your project.
As a sequestration activity, that is, an activity that stores carbon in vegetation or soil, an avoided
deforestation project is subject to a permanence obligation. This means the project must be
maintained ‘permanently’. Under the Emissions Reduction Fund, this means the project must be
maintained for either 25 or 100 years. If a fire or other disturbance occurs in the area during the
project, causing a decline in the amount of carbon stock, regrowth must be managed to allow the
carbon stock to return to previously reported values. Alternatively, ACCUs equivalent to the loss of
carbon caused by the disturbance can be relinquished.
To conduct an Avoided Deforestation project and earn ACCUs make sure you read and understand
the method and other legislative requirements. To do this you will need to:

Download the Carbon Credits (Carbon Farming Initiative) Avoided Deforestation Methodology
Determination 2013 and Explanatory Statement.

Download and understand how the Carbon Credits (Carbon Farming Initiative) Act 2011 (the CFI
Act), the Carbon credits (Carbon Farming Initiative) Regulations 2011 and the Carbon Credits
(Carbon Farming Initiative) Rule 2015 apply to a project.

Download and use the latest version of the Carbon Farming Initiative Mapping Guidelines.

Ensure you have the legal right to conduct your project as well as the carbon sequestration right
or permission from the person or entity holding the carbon sequestration right to run a project
on their land, and the consent of anyone with a legal interest in the land (eligible interest
holders).

Apply to register as a scheme participant, to open an account in the Australian National Registry
of Emissions Units (ANREU) and to conduct an Avoided Deforestation project.

Set up your project according to the instructions in Part 2 of the method and ensure you meet
the requirements in Part 3 of the method for operating a project. Set up record keeping and
monitoring systems for your project as required by Part 4 of the method.

Estimate the average annual abatement of your project, obtain an audit schedule for your
project from the Clean Energy Regulator and engage a Category 2 Greenhouse and Energy
Auditor early on in your project. Submit audits of your project according to your audit schedule.
A guide to the Avoided Deforestation method
3

Determine the amount of carbon your project stores using the calculations in Part 3 of the
method. Convert the amount of carbon captured into carbon dioxide equivalents (CO 2-e).

Submit your project report and application for ACCUs to the Clean Energy Regulator for
assessment.
What does an Avoided Deforestation project look
like?
There are a number of elements that make up an Avoided Deforestation project. First, a project
must be located in Australia. This includes Australia’s external territories. Second, the forest must be
either a native forest that was standing on 31 December 1989, or had potential to be forest on 31
December 1989. In both cases, the forest must have remained as native forest from 1 January 1990
to when a project starts. Third, a clearing consent for the forest must have been issued before 1 July
2010 that states that clearing is permitted for the purposes of converting the forest to cropland or
grassland only and that this change in land use must be permanent.
The forest must be managed to achieve a mix of trees, shrubs and understorey plants that occur
naturally in the area the project is located, and the person responsible for the project must not have
a license or permit to remove wood from the forest for commercial purposes or firewood. Collecting
firewood for personal use from the area is allowed under the determination, but no more than 5
per cent of material may be removed for this purpose.
Details on what is required for an Avoided Deforestation project to be considered eligible by the
Clean Energy Regulator, including evidence showing how the project area meets those
requirements, are in Part 2 of the method and explanatory statement.
Forest cover vs forest potential
Land has forest cover if the land has an area of at least 0.2 hectares and the vegetation on the
land includes trees that are two metres or more in height, and provide crown cover of at least
20 per cent of the land.
Land has forest potential if the land has an area of at least 0.2 hectares and the vegetation on
the land includes trees that have the potential to reach two metres or more in height and
provide crown cover of at least 20 per cent of the land.
A guide to the Avoided Deforestation method
4
Setting up and running an Avoided Deforestation
project
How an Avoided Deforestation project is set up and run is critical for calculating the mean amount
of carbon stock (i.e. carbon stored, or sequestered) as a result of a project, which in turn
determines how many ACCUs may be issued for a project. Part 3 of the method and explanatory
statement describe in detail how to set up an Avoided Deforestation project and how to calculate
the mean carbon stock for your project.
Remember to download a copy of the explanatory statement to read along with the
Avoided Deforestation method. Explanatory statements provide further detail about each
part of the method and are important documents for interpreting and understanding a
method.
Establish the project area
Identify the area in which your project activity will occur using a combination of remotely sensed
imagery, a land cover assessment and the CFI Mapping Guidelines. The information gathered must
then be used to further divide or stratify the project area into carbon estimation areas (CEAs), and if
applicable, exclusion zones or clearing buffers. CEAs are the core areas of your project where
carbon will be stored and for which ACCUs may be issued. Exclusion zones are those parts of your
project area where project activities are not conducted and may include a road, building or dam
(Figure 1).
Clearing buffers are only required if the clearing consent specifies that part of the forest must not
be cleared. In this situation, at least one clearing buffer must be included in the project area (see
Division 3.2, paragraph 3.5).
Clearing buffers must have a total area equal to that required by the clearing consent and while
they are part of the project area, and the project activity must be implemented in each clearing
buffer, they are not counted when calculating how much carbon your project has stored (Figure 2).
For example, Jesse has a clearing consent for the native forest on his land specifying that 20 per
cent of that forest must not be cleared. When stratifying the project area, which covers the entire
native forest on his land, Jesse delineates a single clearing buffer covering 20 per cent of the native
forest.
Steph on the other hand has a clearing consent for the 2000 hectares of native forest on her land. It
specifies that 20 per cent, or 400 hectares, of the native forest must not be cleared. Steph decides
to run an Avoided Deforestation project on 1000 hectares and to use the remaining 1000 hectares
A guide to the Avoided Deforestation method
5
for cropping. Steph still needs to delineate a clearing buffer covering 20 per cent or 400 hectares of
the total native forest, and not 200 hectares or 20 per cent of the project area.
When stratifying the project area, Steph delineates two clearing buffers, one covering 15 per cent
of the native forest and the other covers 5 per cent.
You may need to re-stratify CEAs if the area has been disturbed for example by fire or pests. This
will need to be done before submitting your offsets reports.
Calculate project baseline
The project baseline represents what would happen if your project did not occur. It provides a point
against which any changes in the amount of carbon stored by a project in a reporting period is
measured.
For Avoided Deforestation projects, the baseline is the carbon remaining in the CEAs if the activities
permitted by the clearing consent went ahead. Figure 3 shows the sequence of equations you will
need to use to calculate your project baseline (see also Subdivisions 3.4.1 – 3.4.4 of the method and
explanatory statement).
To calculate the project baseline you will need to prepare a deforestation plan with accompanying
map describing the activities allowed by the clearing consent (see Subdivision 3.4.1 in the method).
You will also need to conduct a biomass survey and calculate the biomass of the project area (see
Subdivision 3.4.3 in the method). You will use the deforestation plan combined with the findings of
the biomass survey to calculate the change in carbon stocks in the project area as well as for
calculating emissions for the baseline scenario (see Subdivision 3.4.4 in the method). The baseline
includes the emissions in each carbon estimation area and the carbon stock change in each
estimation area had clearing occurred. The value calculated sets the baseline for the remainder of
the project’s crediting period, which is 20 years.
Figure 1: Example of a project area, carbon estimation areas, clearing buffer and exclusion areas
for an Avoided Deforestation project
A guide to the Avoided Deforestation method
6
Figure 2: Calculating clearing buffers
You need to prepare a deforestation plan for your project, which may include clearing buffers if
your clearing consent specifies that part of your forest may not be cleared. Trees in clearing buffers
are called 'non-project trees' and cannot contribute to estimates of abatement.
To calculate the non-project tree buffer, and the total biomass of non-project trees in each plot,
you need to complete Equations 13 and 14 in the methodology determination.
Calculate the biomass of your project
For the purposes of an Avoided Deforestation project, biomass is the total quantity or weight of
plant material in a project area, both above and below ground. You need to calculate the biomass
of your project area by conducting a biomass survey. The biomass survey will provide the mean
amount of carbon stock in a project area.
A biomass survey must be conducted in each CEA in the first reporting period (see Subdivision 3.4.3
of the method). Subsequent biomass surveys are only needed in CEAs where a disturbance, such as
a fire, has occurred. When preparing to conduct a biomass survey you must design and allocate
plots according to the instructions in Paragraphs 3.29 and 3.30 of the method. Next, you must
conduct a pilot survey to estimate the variation in biomass in each CEA (Paragraph 3.31).
The information from the pilot survey is also used to determine the final sample size required to
estimate carbon stocks in the native forest in the project area (Paragraph 3.32) to the level of
accuracy specified in the determination (Paragraph 3.32 Steps 4.1 and 4.2).
The biomass of trees above ground is determined first by taking non-destructive measurements
such as trunk diameter of sample trees. To estimate biomass below ground, apply the appropriate
root to shoot ratio provided in Schedule 1, Table 1.2 in the method.
A guide to the Avoided Deforestation method
7
The data collected from measuring the biomass sample trees are used to develop and validate
mathematical equations called allometric equations (see the following section and Subdivisions
3.4.2–4.4.4 in the method).
Develop and use allometric equations to calculate project biomass
In an Avoided Deforestation project, allometric equations are used to estimate the amount of
biomass (and therefore carbon) in a project tree based on its size and weight. Allometry is a
technique that uses mathematical equations to determine the relationships between parts of living
things. For example, a commonly applied allometric equation expresses the relationship between
stem diameter and the amount of biomass (and therefore carbon) in a tree. This is determined by
destructively sampling representative trees. Once this is done, it is only necessary to measure stem
diameters of project trees to reliably estimate their biomass and carbon stock.
You will need to use existing allometric equations or develop new allometric equations for each
tree species or group of species measured in the project area as part of the biomass survey. Once
you have selected or developed the allometric equations for your project, each must be tested and
validated to make sure that carbon stocks in the project area are correctly accounted.
Testing and validating allometric equations requires samples to be taken and analysed (destructive
sampling). At least six trees must be selected for destructive sampling to validate each allometric
equation. To develop a new allometric equation, at least 20 trees must be selected for destructive
sampling. When you have determined the number of trees you need to sample, taking into account
that a minimum of 100 trees is required across your project area, you must identify the design,
location and number of plots from which trees will be selected. The location of plots is important as
each allometric equation applies to specific conditions, or allometric domain (see Subdivision 3.4.2,
paragraphs 3.15 and 3.16).
Use equations 1, 2, 3 and 4 when validating allometric equations.
A guide to the Avoided Deforestation method
8
A guide to the Avoided Deforestation method
9
Allometry
Tree allometry provides a method to estimate carbons stocks of forests. It allows the total
biomass of a forest or stand of trees to be estimated without having to cut down all the trees,
take them to a lab, dry all the pieces and then weigh them.
Allometry captures the statistical relationships between various characteristics of tree size in
statistical models called allometric equations. Within normal limits of life-history-related
variability, trees in a population develop in the same way. Therefore, the proportions
between easy-to-measure tree characteristics such as diameter, height and wood density,
and more difficult-to-measure variables such as volume and biomass, follow rules that are the
same for all trees, large or small, if they are growing under the same conditions.
The conditions under which an allometric equation applies are called its allometric domain.
Before starting destructive sampling, trees in the plots must be measured and marked with a
unique identifier so individual trees may be easily located if selected for sampling. The trees must
also be classified according to species or species group and size. When measuring the trees, all
variables used in an allometric equation, such as diameter at breast height, total height and
species, must be taken.
Destructive sampling and analysis of samples must be done according to Subdivision 3.4.2,
paragraphs 3.22 – 3.24 in the method and explanatory statement. Equations 1, 2, 3 and 4 are used
for developing and validating allometric equations.
What's tCO2-e?
CO2-e is a measure of the warming effect of different greenhouse gases that allows them to
be compared to the equivalent amount of carbon dioxide. It refers to the amount of carbon
dioxide that would give the same warming effect as each greenhouse gas that is emitted or
stored by an activity.
Calculating emissions from running the project and natural disturbances
Every project needs to take into account emissions that arise from running the project. This is to
ensure that these emissions are included in calculations that determine the net amount of carbon
your project has stored in a reporting period and crediting period. It is important to note that these
are emissions resulting from retaining and maintaining the forest and for example, may be from fuel
use, and any natural disturbances such as fire (see Subdivision 3.4.5). They are not those emissions
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
that would have occurred if deforestation went ahead. Emissions from the latter are accounted for
in a project’s baseline calculations.
Emissions from fire and from fuel used in the running of the project are subtracted from the total
amount of CO2-e abatement to arrive at the net amount (see Subdivision 3.4.5 of the method).
Calculating the net amount of abatement and number of ACCUs
This is the final step in the calculations to determine the number of ACCUs that may be issued for a
reporting period. At this stage the total change in carbon stock for the project area is calculated in
tonnes of CO2-e.
To do this, work out the net greenhouse gas abatement at the end of the current reporting period
for your project (Equation 39). You will need to know the net greenhouse gas emissions in the
baseline from clearing according to your deforestation plan (Equation 27) as well as the total net
emissions from the project (Equation 38). Emissions from the project include those from a fire event
or from fuel used as a result of running the project.
Once you have completed Equation 39 and established net abatement in tCO2-e for the current
reporting period, apply Equation 40 to calculate the Net Sequestration Number for the crediting
period (see Subdivision 3.4.6 in the method). Equation 40 accounts for changes in carbon stock
during the crediting period. In doing so, the rate of crediting will change only if there is an increase
in emissions or removals during a reporting period.
See Figure 3 for more about applying the equations in the method to calculate net greenhouse gas
abatement.
Monitoring and record keeping
The Clean Energy Regulator recommends you draw up a plan for the monitoring, data collecting
and record keeping required for a project report as specified in Part 4 of the method. The means of
collecting and recording data will need to be in place from the start of the project. Should a project
report and associated audit show that data collecting and record keeping has not been in place for
the entire reporting period, ACCUs may not be issued for some or all of that reporting period.
When developing your plan, make sure you have the right controls and processes around your data.
Are you collecting your data efficiently? Will you be able to maintain your data in the event of an
emergency such as a fire?
Avoided Deforestation project monitoring can take the form of land cover assessments with
remotely sensed imagery. For details on how to monitor your project, see Division 4.2 of the
method.
The different types of records that must be kept for an Avoided Deforestation project include
information about land cover assessments, the data source used to identify the project area,
geographic coordinates of each CEA, exclusion zone and clearing buffer, information about plot
design and number, the method for establishing plots, photographs of field plots and records of
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
11
fuel use for the project. The complete list of records required can be found in Division 4.3 to 4.8 of
the method.
Project and audit reports
You need to report on your project to the Clean Energy Regulator and may report as frequently as
every six months where allowed for in the legislative rules made under the Carbon Farming
Initiative Act (2011). Audits are required where indicated in your project’s audit schedule, which
the Clean Energy will provide following registration of your project.
For sequestration projects, the first report must be made between six months to five years from
the date the project was declared eligible and then up to every five years thereafter.
Division 4.4 of the method lists the information that must be included in your project reports.
Applications for ACCUs can be made at the same time as you submit your project reports using the
Certificate of entitlement including offsets report form. Full reporting, record keeping and
monitoring requirements are set out in regulations and rules made under the Act. You should
familiarise yourself with these requirements.
The Clean Energy Regulator will not issue Australian carbon credit units automatically on receipt of
a project report.
Emissions Reduction Fund projects are able to generate credits throughout their crediting period.
Crediting periods for each type of project are set out in Part 5 of the CFI Act. The crediting period
for an Avoided Deforestation project is 20 years.
The role of audit
Audits assess whether a project complies with the project registration, the relevant method and
legislative requirements. Audit reports must be prepared by a registered Category 2 Greenhouse
and Energy Auditor; a list of auditors is available on the Clean Energy Regulator website under
National Greenhouse and Energy Reporting.
The Clean Energy Regulator recommends you engage your auditor early when developing your
project to ensure the project is auditable and to assist the auditor to plan activities throughout the
reporting and post-reporting periods. The costs of any audit are your responsibility or the
responsibility of your organisation. You must make available to the auditor all necessary documents
and information, including data records, receipts and other supporting documentation, and
calculation spread sheets. For more information about auditing your project see Participating in the
Emissions Reduction Fund – Claiming and selling ACCUs.
Making changes to a project
You must notify the Clean Energy Regulator of any changes to your or your project’s circumstances
or operations that may affect project ownership, the project’s eligibility or the amount of
abatement reported and the number of ACCUs claimed. A project owner must seek approval from
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
12
the Clean Energy Regulator if they intend to make a significant change from the project as outlined
in the application.
Resources

For more information on participating in the ERF - www.cleanenergyregulator.gov.au

For more information regarding method development – www.environment.gov.au

www.comlaw.gov.au is the site where you can find all legislative instruments including the:
» Carbon credits (Carbon Farming Initiative) Act 2011 (current version)
» Carbon credits (Carbon Farming Initiative) Regulations 2011
» Carbon Credits (Carbon Farming Initiative) Rule 2015
» Carbon Credits (Carbon Farming Initiative—Avoided Deforestation) Methodology
Determination 2015
» Explanatory statement

Participating in the Emissions Reduction Fund – Getting started

Participating in the Emissions Reduction Fund – Claiming and selling ACCUs

Carbon Farming Initiative Mapping Guidelines

Enquiries on participating in the ERF - 1300 553 542; enquiries@cleanenergyregulator.gov.au
IMPORTANT INFORMATION ABOUT THIS GUIDE
The Clean Energy Regulator is updating the information in this guide to align it with the
Emissions Reduction Fund.
While the information in this guide about the Avoided Deforestation method is current,
and may be used to help you read and understand the method and its explanatory
statement, general information about how to participate in the Emissions Reduction Fund
requires updating.
For general information about how to participate in the Emissions Reduction Fund please
see Participating in the Emissions Reduction Fund – Getting started and Participating in
the Emissions Reduction Fund – Claiming and selling ACCUs.
GPO Box 621 Canberra ACT 2601
1300 553 542
enquiries@cleanenergyregulator.gov.au
www.cleanenergyregulator.gov.au
13