The carbon credit market in Australia is set for a transformative shakeup with the launch of Sensand’s new platform at the Australasian Emissions Reduction Summit in Melbourne. The Melbourne-based agtech developer is tackling the sector’s longstanding issues of transparency, traceability, and trust. Sensand’s dual-platform technology provides a comprehensive solution to monitor, verify, and manage carbon credits from project creation to market sale, setting a new benchmark for transparency in the Australian carbon credit space, where demand is climbing and scrutiny is sharpening.
Demand for ACCUs Set to Surge
Australian carbon credits, known as Australian Carbon Credit Units (ACCUs), have seen accelerating demand from both voluntary and mandated markets, with S&P predicting a rise to nine million units this year and a peak of 31 million by 2031. ACCUs play a critical role in Australia’s decarbonisation journey, and they underpin compliance schemes like the Federal Government’s Safeguard Mechanism, which requires Australia’s 219 largest emitters to reduce their emissions by 34.3% by 2030. However, as demand surges, transparency and accurate reporting are becoming non-negotiable for an increasingly scrutinised market.
Sensand founder and CEO Peter Moulton
Sensand’s platform aims to restore confidence in ACCUs by providing real-time, granular data on each project’s carbon abatement activity. “We believe that our platform is the world’s first end-to-end carbon management ecosystem,” says Sensand founder and CEO Peter Moulton. By giving buyers direct access to live project data, Moulton hopes to eliminate the market’s “not knowing” problem, where investors are left uncertain about the authenticity and effectiveness of their credits. In a market where confidence is as valuable as the credits themselves, the platform’s ability to trace and verify each ACCU’s journey could redefine industry standards.
Rebuilding Trust in the Wake of Criticism
The timing of Sensand’s release couldn’t be better. The credibility of Australia’s carbon credits recently took a hit with a critical study from Australian National University, which found that nearly 80% of 182 projects using the human-induced regeneration method (HIR) had achieved minimal or even negative forest growth. This has fuelled calls for tighter oversight and cast doubt on the efficacy of some ACCUs, highlighting the importance of reliable verification systems. Sensand’s technology, which aggregates data from satellites, in-ground sensors, drones, and other devices, offers a solution to the market’s ongoing credibility crisis by providing continuous monitoring and real-time transparency.
“Not really knowing what you are buying or if the project is still on track years after it was first registered is a massive issue,” Moulton explains. With Sensand’s platform, buyers can track the health and status of carbon projects as they evolve, which could mitigate concerns around the “invisible” nature of many credits. This visibility is not just useful for buyers but is critical for brokers, auditors, and compliance agencies, which will now be able to perform due diligence using accurate, live data.
Clean Energy Regulator’s Latest Report Highlights New Heights in Carbon Abatement
The Clean Energy Regulator’s (CER) latest report underscores the need for platforms like Sensand’s. As of its 2023–24 Annual Report, the CER recorded an all-time high of 69 million tonnes of CO2-e abated, up from 62.2 million tonnes the previous year. ACCU issuance also hit a record, with 187.7 million units issued, reflecting growing activity within the carbon credit space. Moreover, the CER has demonstrated solid compliance across its schemes, with a remarkable 97.2% of participants meeting reporting obligations.
However, with increasing regulatory expectations, Sensand’s platform could provide essential support to ensure compliance is not just met, but that every ACCU reflects a genuine reduction in emissions. Moulton believes the platform’s advanced data capabilities can complement the CER’s oversight, saying that “the automation, integration, and transparency we provide will make it easier for participants to track and report their carbon abatement in ways that are accurate and verifiable.”
Empowering Farmers and Landowners with Technology
For farmers and landowners, Sensand’s platform brings both a business opportunity and a chance to participate meaningfully in Australia’s emissions reduction targets. Farmers often face complex, time-consuming processes to get projects registered, verified, and ready for sale. Sensand’s technology changes this, helping landowners identify viable carbon projects, track their performance, and, if needed, group projects with other farms for economies of scale. “A major stumbling block for farmers has been the ability to easily identify a potential carbon project, get it registered, and then marketed,” says Moulton. Sensand’s platform significantly reduces these hurdles, integrating the registration and monitoring processes while automating data collection.
By creating a seamless system for managing carbon projects, Sensand empowers Australia’s agricultural sector, which plays a key role in carbon sequestration through reforestation and regenerative practices. This could help address some of the issues highlighted by the recent ANU report by bringing transparency and accountability to each step of the carbon credit lifecycle.
The Road Ahead for Australia’s Carbon Credit Market
Sensand’s dual-platform technology arrives amid intensifying calls for transparency and verification. With the 2024 UN Climate Change Conference just around the corner, and the push for a UN-backed carbon trading system growing louder, Sensand’s innovation could not only influence Australian standards but also contribute to global carbon market reform. Backed by significant investor interest, including a $6 million injection from businessman Robert Costa, and a partnership with the government-funded One Basin Cooperative Research Centre, Sensand’s approach could set new industry benchmarks for carbon management.
As demand for ACCUs continues to climb, and as companies and nations seek credible avenues to reach net-zero, Sensand’s platform stands as an example of how technology can reinforce environmental integrity. The Australian carbon market – and the global climate objectives it serves – could stand to benefit from such a reliable, transparent approach. Sensand’s CEO Peter Moulton and his team may have just put Australian carbon credits on a more robust footing, potentially restoring faith in the carbon market and ensuring that each credit delivers on its promise to reduce emissions.
