A PROPOSED new Australian Carbon Credit Unit Scheme livestock method under development by Meat & Livestock Australia will be applicable to lamb, mutton and beef production.

The Albanese Labor Government today said it has prioritised development of the new livestock method to enable farmers to diversify their income through flock and herd management practices that reduce methane emissions.

The new method will replace the Beef Cattle Herd Management method that expired on 30 September 2025 after 10 years of operation.

A release from Minister for Agriculture Julie Collins and Assistant Minister for Climate Change and Energy Josh Wilson said the new ACCU livestock method will 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.

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.

MLA group manager – sustainability Joe McMeniman said MLA is working with the red meat industry’s peak bodies and the Australian Government on development of the new ACCU livestock method.

“The proposed intent is for the method to apply across multiple livestock sectors, including sheep production, and therefore be relevant to both lamb and mutton.”

However, it seems the new livestock method will not have a biogenic methane accounting component.

“MLA is actively investing in environmental sustainability research as part of its Strategic Plan, including significant work to better understand the biogenic methane cycle in Australian grazing systems,” Mr McMeniman said.

“This research is being undertaken in partnership with industry, the research community and government, and is aimed at improving the evidence base that underpins emissions measurement, reporting, mitigation technologies and sequestration in the red meat sector.

The ministerial release said 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.

To drive scientific innovation and develop the evidence base for methane reducing feed additive technologies such as Asparagopsis seaweed and 3-NOP, the Albanese Government said it has invested $29 million through the Methane Emissions Reduction in Livestock program. An additional $6.2 million was spent through the Developing Australia’s Seaweed Farming grant program to support industry-led efforts to scale up commercial production of Asparagopsis seaweed as a methane inhibiting livestock feed supplement.

Ms Collins said the government is backing 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.

“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,” she said.

“More broadly, the government has committed over $2 billion to ensure farmers across the country can confidently face our climate future.”

Mr Wilson said the government wanted 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.

“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.”