Australian Carbon Fund

The Australian Carbon Fund provides investors with unprecedented access to buy and sell Australian Carbon Credit Units (ACCUS).

The fund seeks to capitalise on the increasing focus on emissions' reductions by Australian organisations, investors and consumers and tap into the fast-growing domestic carbon market.

ACF aims to deliver strong returns for investors and promote investment in activities designed to accelerate climate action.

For companies, an investment in the ACF helps to de-risk against rising prices of carbon offsets as well as potentially add a ‘green premium’ to their product.

Australian Carbon Credit Units, or ACCUs, are the credits issued under the Emissions Reduction Fund (ERF) by the Australian Clean Energy Regulator. Each credit represents one tonne of carbon dioxide equivalent (tCO2e).

The government determines the level of emissions permissible by top polluters, known as the Safeguard Mechanism, and any emission beyond this legislated level must be offset by the polluter purchasing ACCUs.

Many other companies choose to voluntarily purchase ACCUs to offset their emissions for ESG reasons as well as to claim carbon neutrality.

ACCUs can be generated through a range of means, provided they involve actions that wouldn't have otherwise occurred (additionally).

Some examples include:

• Human induced regeneration (HIR)
• Savanna fire burning
• Landfill gas
• Carbon soil sequestration
• Avoided deforestation
• Carbon capture and storage

• ACCUs are currently extremely illiquid, with only ~1300 entities eligible to hold them.
• There is a significant time barrier to entry, with the process to open a registry account and complete the necessary accreditation now taking >6 months.
• ACCUs are held on a public registry, meaning your name, address, and holdings are publicly available.
• ACCUs are generally only traded in large parcel sizes (~10,000 units, ~$280,000).
• ACCUs are considered a financial product, and nearly all traditional stockbroking firms don’t have the necessary AFSL distinction to deal in them.
• This leaves a significant gap in the market for a vehicle that offers simple and timely investment in the emerging ACCU asset class.

• Climate change is the most significant risk faced by investors today.
• Many businesses will be unable to evolve quickly enough to stay on track with net-zero targets.
• Carbon offsets allow businesses to bridge the gap.
• Exposure to carbon credits can allow companies to both meet their ESG requirements and also hedge against rising carbon prices.
• An investment in the Australian Carbon Fund can be recognized as ESG spending.
• Many investors and funds invest based on ESG ratings, and utilizing offsets has the potential to expand your investor base.
• Even supposed ‘green’ metals used in the net-zero transition are still detrimental to the environment in their mining and processing.