Project Methologies

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Carbon Project Methodologies

Carbon methodologies provide the scientific and procedural framework that determines how emissions reductions or removals are measured, verified and credited. Each method outlines the specific activities a project must undertake, the way carbon benefits are quantified, and the safeguards in place to ensure integrity. By setting clear rules for baseline scenarios, monitoring requirements, and eligibility criteria, these methodologies ensure that carbon credits represent real, additional and durable climate outcomes. The method briefs below introduce the different types of carbon project methodologies:

Savanna fire management

Tropical savanna fires in Australia are responsible for over 4% of the country’s greenhouse gas emissions¹. Uncontrolled wildfires during the late dry season can cause significant harm to the environment and cultural sites, and release substantial amounts of greenhouse gases.

By implementing traditional fire management practices, rangers plan and conduct strategic burning in the early dry season to reduce the incidence and size of late dry season fires and subsequent emissions; this also permits healthy, on-going growth of vegetation. The amount of greenhouse gas emissions (methane and nitrous oxide) that is avoided through these project activities is calculated manually or using the government-backed Savanna Burning Abatement Tool (SavBAT), and this is converted to the volume of ACCUs issued for the project.

This method recognises the traditional burning methods used by First Nations people for thousands of years.

REDD+

Tropical forest clearing accounts for 12-20% of anthropogenic carbon emissions and destroys globally significant carbon sinks¹. Trees release stored carbon into the atmosphere when they decay or are burned, and as more trees are cleared, the forest’s capacity to absorb carbon decreases.

‘REDD’ stands for ‘reducing emissions from deforestation and forest degradation’. The ‘+’ represents sustainable management of forests and conservation and enhancement of forest carbon stocks². Tropical forests in developing countries are critical to the local communities who live and/or work in those forests. A combination of circumstances such as poverty, weak governance, past wars or conflicts, may lead to the illegal logging or deforestation of these forests. REDD+ projects provide finance to these communities, so they receive funding to protect their forests rather than allow for its deforestation.

Improved Cookstoves

According to the World Health Organisation (WHO) (2025), 2.1 billion people around the world (about one in three people globally) cook their food on polluting open fires or inefficient stoves, significantly harming their health and the environment. This style of cooking has particularly severe consequences for the health of women and children who are responsible for preparing meals. Improved cookstove projects not only significantly reduce carbon emissions but also provide lasting benefits to communities.

These cookstoves significantly reduce the amount of charcoal and/or wood fuel needed to cook food by providing cleaner, more complete combustion. This results in less greenhouse gases being released into the atmosphere during the cooking process, when compared to traditional, open-fire cooking. By reducing wood use, it also reduces the number of trees removed from forests for cooking fuel.

This leads to improved air quality within communities and a reduction in health issues related to traditional, open-fire cooking.

Human Induced Regeneration

Agriculture accounts for more than half of Australia’s land use, with grazing native vegetation occurring in most areas of Australia¹. Human-induced regeneration (HIR) projects involve the regeneration of native forests by changing land management practices. The native forest on these projects has been suppressed for at least a decade prior to the project start date, and with the project’s implementation and carbon finance, the forest can regrow (and subsequently sequester carbon); the carbon stored in the trees must be kept for either 25 or 100 years. The changed land management activities may include managing the timing and extent of grazing, managing feral animals, and stopping clearing. Like many methods under the Emissions Reduction Fund (ERF), HIR is designed to promote and uplift sustainable agricultural practices.

Renewable Energy

According to the UN, a large percentage of the greenhouse gases that blanket the Earth and trap the sun’s heat are generated through energy production, by burning fossil fuels to generate electricity and heat. The UN says fossil fuels are by far the largest contributor to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions.

TEM-sourced wind and solar renewable energy projects across Asia create clean energy for locals, which otherwise would have been generated by fossil-fuel fired power stations. The UN states that switching to clean sources of energy, such as wind and solar, helps address not only climate change, but also air pollution and health issues, as unhealthy levels of fine particulate matter and nitrogen dioxide in the air around the world originate mainly from the burning of fossil fuels. The TEM-sourced projects also supply electricity to regional grids, improving the availability of electricity in the regions.

Methane leak detection and repair

Methane is a very potent greenhouse gas produced mainly by human activities. Over a 20-year period, one tonne of methane warms the planet about 86 times more than carbon dioxide. Even when averaged over 100 years, it is still 28 times stronger than CO₂¹. Because of this, methane is the second-largest contributor to climate change after carbon dioxide. Cutting methane emissions quickly is one of the fastest ways to slow global warming².

A major source of methane comes from the natural gas industry. When gas is extracted, processed or transported, leaks and equipment failures can release large amounts of methane into the atmosphere. These “fugitive emissions” have become more visible in recent years, often tracing back to ageing infrastructure or poor maintenance. In 2021, for example, fugitive methane made up around 8% of New South Wales’ total greenhouse gas emissions³.

Methane carbon projects aim to reduce these emissions by finding and fixing leaks. The methane that is prevented from leaking is calculated as carbon abatement, which can then be turned into carbon credits.

This information has been prepared by Tasman Environmental Markets Australia Pty Ltd (TEM), a corporate authorised representative (ABN 97 659 245 011, CAR 001297708) of TEM Financial Services Pty Limited (ABN 58 142 268 479, AFSL 430036). This material is for general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. While we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which can’t be excluded. Before making an investment decision, you should first consider if the information is appropriate for your circumstances and seek professional financial advice. Please note past performance is not a guarantee of future performance.

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