{"id":"F2023L00530","name":"Clean Energy Regulator (Human-Induced Regeneration Projects) Direction 2023","slug":"clean-energy-regulator-human-induced-regeneration-projects-direction-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441858,"registerId":"F2023L00530-fast-fetch-1775957036025","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Clean Energy Regulator (Human-Induced Regeneration Projects) Direction 2023","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nClean Energy Regulator (Human-Induced Regeneration Projects) Direction 2023\n\nI, Chris Bowen, Minister for Climate Change and Energy, make the following direction.\n\nDated  3 May 2023  \n\nChris Bowen\n\nMinister for Climate Change and Energy\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Object\n\nPart 2—Direction to the Regulator\n\n6  Direction on administering the HIR methodology\n\n7  Direction to publish HIR project information\n\n8  Direction to prioritise compliance audits of HIR project proponents\n\n9  Direction on appointing auditors for audits of HIR project proponents\n\n10  Application of this direction\n\n \n\nPart 1—Preliminary\n\n1  Name\n\n  This instrument is the Clean Energy Regulator (Human-Induced Regeneration Projects) Direction 2023.\n\n2  Commencement\n\n  This instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: Section 42 (disallowance) and Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 do not apply to this instrument: see regulations made for the purposes of paragraphs 44(2)(b) and 54(2)(b) of that Act.\n\n3  Authority\n\n  This instrument is made under subsection 41(1) of the Clean Energy Regulator Act 2011.\n\n4  Definitions\n\nNote: Some expressions used in this instrument are defined in section 4 of the Act, including the following:\n\n(a) offsets project;\n\n(b) Regulator.\n\n  In this instrument:\n\nAct means the Clean Energy Regulator Act 2011.\n\nAudit Determination means the National Greenhouse and Energy Reporting (Audit) Determination 2009.\n\nCFI Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.\n\nCFI Rule means the Carbon Credits (Carbon Farming Initiative) Rule 2015.\n\neligible offsets project has the same meaning as in the CFI Act.\n\nFinal Report of the Independent Review of ACCUs means the Final Report of the Independent Review of ACCUs by Professor Ian Chubb, the Hon Dr Annabelle Bennett, Ariadne Gorring and Dr Steve Hatfield-Dodds, dated December 2022.\n\nNote: At the commencement of this instrument, the Final Report of the Independent Review of ACCUs could be viewed on the Department’s website (https://www.dcceew.gov.au/climate-change/emissions-reduction/independent-review-accus).\n\nHIR methodology means the Carbon Credits (Carbon Farming Initiative) (Human-Induced Regeneration of a Permanent Even-Aged Native Forest—1.1) Methodology Determination 2013 and any earlier version of that determination applicable to a project for a reporting period in accordance with section 125, 126, 127 or 130 of the CFI Act.\n\nHIR project means a project for which the HIR methodology is the applicable methodology determination.\n\nHIR project proponent means a project proponent of an eligible offsets project that is an HIR project.\n\nNGER Regulations means the National Greenhouse and Energy Reporting Regulations 2008.\n\n5  Object\n\n  The object of this direction is to ensure that, to the extent legally practicable, and recognising the priority given to ensuring the integrity of carbon abatement, the Regulator implements recommendation 8 of the Final Report of the Independent Review of ACCUs.\n\nNote: Recommendation 8 concerns project administration for the HIR methodology.\n\n \n\n \n\nPart 2—Direction to the Regulator\n\n6  Direction on administering the HIR methodology\n\n  The Regulator must, to the extent permitted by law, administer the HIR methodology consistently with recommendations 8.1 and 8.2 of the Final Report of the Independent Review of ACCUs.\n\nNote: The HIR methodology applies to an HIR project (short for human induced regeneration project) and sets out requirements that must be met for an HIR project to be an eligible offsets project.\n\n7  Direction to publish HIR project information\n\n  The Regulator must, to the extent permitted by law, publish the information recommended to be published by recommendation 8.3 of the Final Report of the Independent Review of ACCUs.\n\n8  Direction to prioritise compliance audits of HIR project proponents\n\n  In its approach to initiating compliance audits under subsection 215(1) of the CFI Act, the Regulator must give priority to audits of the compliance of HIR project proponents with their obligations under the CFI Rule, particularly the eligibility requirements under section 9AA of the CFI Rule, taking into account project risk.\n\nNote: The Regulator has a power under section 215 of the CFI Act to appoint a registered greenhouse and energy auditor as an audit team leader to carry out an audit of a person’s compliance with one or more aspects of the Act, the CFI Rule, and relevant sections of the Criminal Code.\n\n9  Direction on appointing auditors for audits of HIR project proponents\n\n (1) This section applies in relation to an audit initiated by the Regulator under subsection 215(1) of the CFI Act, where the person whose compliance with the Act or associated provisions is to be audited is an HIR project proponent.\n\n (2) Before appointing a registered greenhouse and energy auditor as an audit team leader to carry out the audit, the Regulator must be satisfied that:\n\n (a) the auditor has appropriate skills and experience as necessary to carry out the audit; and\n\n (b) either:\n\n (i) the auditor has skills and experience in relation to ecological assessment; or\n\n (ii) the auditor will select one or more audit team members with skills and experience in relation to ecological assessment to assist in carrying out the audit; and\n\n (c) in carrying out the audit, the auditor will comply with the requirements of Subdivisions 6.6.2 to 6.6.4 of the NGER Regulations and the requirements of the Audit Determination.\n\n Note: Subdivisions 6.6.2 to 6.6.4 of the NGER Regulations deal respectively with the Code of Conduct for registered greenhouse and energy auditors, general independence requirements and other independence requirements.\n\n10  Application of this direction\n\n  This direction applies subject to the Act, the CFI Act, the CFI Rule, the NGER Regulations, the Audit Determination and the HIR methodology.\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This direction maintains a narrow, targeted scope focused specifically on HIR (Human-Induced Regeneration) projects and implementing Recommendation 8 of the Chubb Review. It does not expand beyond this specific methodology or the specific recommendations identified. The instrument is precisely calibrated to address known integrity concerns with one particular carbon credit method rather than broadening to other methodologies or general regulatory reform."},"complexity_factors":["Short instrument (10 sections, ~3 pages)","Only 7 defined terms in section 4, plus references to external defined terms","Heavy reliance on external documents — the direction repeatedly references 'recommendation 8' and sub-recommendations 8.1, 8.2, 8.3 of the Chubb Review, meaning the full operative content requires reading a separate 200+ page report","Multiple cross-references to other legislation (Clean Energy Regulator Act 2011, CFI Act 2011, CFI Rule 2015, NGER Regulations 2008, Audit Determination 2009) and specific sections within them","Conditional language throughout ('to the extent permitted by law', 'to the extent legally practicable', 'subject to' other instruments in section 10)","Nested conditions in section 9(2)(b) requiring either ecological skills OR team members with those skills"],"plain_english_summary":"This ministerial direction instructs the Clean Energy Regulator to implement key Chubb Review recommendations for Human‑Induced Regeneration (HIR) carbon projects: increase transparency, tighten oversight and compliance checks, and require auditors to have ecological expertise. It targets the Regulator, HIR project proponents (landholders) and auditors. It matters because it strengthens safeguards against credits being issued for regrowth that would have occurred anyway, protecting the scheme’s environmental integrity."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The direction does not amend statutory powers or broaden legal scope; it instructs how the Regulator should exercise existing powers under the Clean Energy Regulator Act and the CFI Act (see s.3 and s.10). It imposes administrative priorities and procedural requirements but is expressly subject to the Act, the CFI Act, the CFI Rule and related regulations."},"complexity_factors":["Extensive cross‑references to multiple statutes and instruments (Clean Energy Regulator Act 2011, CFI Act, CFI Rule, NGER Regulations, Audit Determination) increases legal and administrative complexity (see s.10).","Many obligations are qualified by “to the extent permitted by law,” creating uncertainty about how far the direction can constrain Regulator discretion (see ss.6–7).","Mandated prioritisation of audits requires the Regulator to apply risk‑based resource allocation and may change operational audit programs (see s.8).","Auditor appointment tests require ecological expertise or specialist team members, adding technical staffing and procurement complexity (see s.9(2)(b)).","Audits must comply with existing technical audit codes and independence rules, linking administrative direction to detailed regulatory requirements (see s.9(2)(c) and note on subdivisions 6.6.2–6.6.4 of the NGER Regulations).","Publication requirement depends on interpretation of an external review’s recommendation, introducing interpretive and information‑management tasks (see s.7 and defined Final Report).","The instrument directs administrative practice rather than amending primary legislation, so its practical effect depends on how existing statutory powers are exercised and resourced."],"plain_english_summary":"This direction instructs the Clean Energy Regulator to treat human‑induced regeneration (HIR) carbon projects differently: administer the HIR methodology in line with an independent review, publish specified HIR project information, prioritise audits of HIR proponents, and require auditors to have (or include team members with) ecological expertise. It affects HIR project proponents (who face greater audit and reporting scrutiny), the Regulator (which must reallocate audit resources), and auditors (who must demonstrate ecological skills)."}},"importantCases":[],"_links":{"self":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023","history":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023/history","analysis":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023/analysis","conflicts":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023/conflicts","importantCases":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023/important-cases","documents":"/api/acts/clean-energy-regulator-human-induced-regeneration-projects-direction-2023/documents"}}