The federal government is developing a new Australian Carbon Credit Unit (ACCU) Scheme livestock method with Meat & Livestock Australia (MLA), which will allow farmers to earn ACCUs through low-emissions livestock management.
The new scheme will replace the Beef Cattle Herd Management method, which expired on 30 September 2025 after 10 years of operation. It allowed beef producers to earn ACCUs by reducing the emissions intensity of beef production through improved herd management, rather than by reducing total cattle numbers.
Herd management practices used to reduce methane include improving the digestibility of feed, enhancing herd fertility, pasture and manure management, and exploring the use of methane inhibiting feed additives for livestock.
Australia is a major hub for companies working on methane-reducing livestock feed, with Sea Forest debuting on the ASX last year and partnering with Netherlands-based Orffa to expand into the European Union market, Rumin8 receiving $4.4 million in investment to expand its commercialisation process in New Zealand, and Provectus Algae receiving a $4 million IGP grant to construct a new 160,000 litre Asparagopsis production facility last August.
The new ACCU livestock method aims to build on the previous method to include the newest science on methane reducing feed additives and expand beyond pasture-based cattle to include feedlot cattle, dairy cattle and sheep.
Sea Forest co-founder and CEO, Sam Elsom, said the inclusion of methane-abating livestock feed additives in the ACCU program would be a game changer for Australian producers and farmers.
“It acknowledges the significant contribution Australia's livestock industry can make towards the country's climate goals, while rewarding those who support innovation,” said Elsom.
“As the economic case for adoption strengthens, we expect to see a step change in demand for SeaFeed across multiple livestock sectors. With 118,000 head of cattle currently under agreement, the new ACCU method materially strengthens the commercial pathway for broader adoption, making Australia’s multi‑million‑head cattle, sheep and dairy markets even more attainable for Sea Forest and SeaFeed.”
Once developed, the Emissions Reduction Assurance Committee (ERAC) will assess the new livestock method against the legislated Offsets Integrity Standards and provide its advice for consideration.
No new projects can be registered under the expired Beef Cattle Herd method, but existing projects may continue to generate ACCUs until the end of their crediting periods.
Assistant Minister for Climate Change and Energy, Josh Wilson, said the government is working with industry to design a next-generation livestock ACCU method that supports emissions reduction, while safeguarding ACCU market integrity and public confidence.
“We want to make sure there’s greater emphasis on direct methane abatement, with clearer and verifiable causal links between actions taken on the farm and emissions reduced based on enhanced monitoring and reporting,” said Wilson.
“The new method delivers on this goal, advancing the government’s commitment to reforms towards a high-integrity carbon trading system in keeping with the Chubb Review recommendations.”
The federal government has supported research and production of methane reducing feed additive technologies over the past five years, investing a total of $29 million through the Methane Emissions Reduction in Livestock program, and an additional $6.2 million was spent through the Developing Australia’s Seaweed Farming grant program.
Minister for Agriculture, Fisheries and Forestry, Julie Collins, said the government is continuing to back Australian farmers with a flexible and cost-effective way to reduce emissions, while providing opportunities to improve yield and diversify on-farm income.
“Industry has signalled strong interest in replacing the Beef Cattle Herd Management method with a new method that recognises emerging methane reduction technologies across the broader livestock sector,” said Collins.
“Through this updated ACCU method, we have an opportunity to move toward a sector-wide livestock method that allows greater innovation in mitigation technologies and rewards farmers. More broadly, the government has committed over $2 billion to ensure farmers across the country can confidently face our climate future.”
