The “who”, “what” and “when” of the Integrated Farm and Land Management (IFLM) Method

September 23, 2026

The Department of Climate Change, Energy, the Environment and Water are continuing to develop the Integrated Farm and Land Management (IFLM) method, which represents the first Australian Carbon Credit Unit (ACCU) scheme method to allow multiple abatement activities on the same property.

What is IFLM?

The current methods under the ACCU scheme focus on a single activity per method, restricting proponents from undertaking multiple eligible carbon activities on the same property. Proponents looking to undertake separate abatement activities are usually required to register separate projects which increases administrative and transaction costs.
The IFLM method is not intended to replace any specific existing ACCU scheme methods but provide options for proponents wanting to either participate in single activity methods or opt for an “integrated” approach to undertake multiple carbon sequestration or avoidance activities on the one property.

This approach is intended to:

• lower barriers of entering into carbon farming through reduced complexity and costs;
• streamline carbon farming practices with regular agricultural operations and management, leading to increased participation across a broad range of ecosystems and land use activities; and
• generate ACCUs with a higher degree of integrity.

Key features of IFLM

• Activity stacking: Multiple eligible activities can be included as part of a single project, allowing landholders to account for a wide range of carbon management activities that may be available on their property.
• Increased economic viability: The ability to integrate multiple eligible activities on the same property and project provides landholders with the opportunity to develop projects to a greater scale of economic viability by producing a higher total volume of higher integrity ACCUs, optimising project returns.
  
• Reduced transaction costs: It is expected that the transaction costs associated with participating in a carbon project such as monitoring, measurement and audit requirements will decrease as it becomes more cost-effective when shared across multiple projects.

Who will be affected by IFLM?

The IFLM framework is expected to increase participation from landholders and managers across a broader range of agricultural and farming operations.

Eligible Activities

The draft IFLM method proposes to include various activity modules for different abatement activities proponents may undertake in a project, subject to eligibility requirements. These activities are expected to include:

• managed regeneration of native forest on:
  • comprehensively cleared land where regeneration has been suppressed by mechanical or chemical destruction; or
  • land where regeneration has been suppressed by other management actions (i.e. grazing pressure);
• establishment of native vegetation plantings on cleared land; and
• soil organic carbon.

Strategic considerations for Landholders

The IFLM method presents both opportunities and important considerations for the agricultural sector:

• New Revenue Streams: The ability to combine activities may make previously unviable projects commercially attractive, opening up new revenue streams through the generation and sale of ACCUs.
• Project planning is critical: Those interested in considering a carbon project should assess whether the IFLM method aligns with their long-term property management plan. Key legal considerations, such as carbon service agreements, permanence obligations (either 25 or 100 years), and contractual arrangements for the sale of ACCUs must be addressed clearly at the outset.
• Transition of Existing Projects: While not mandatory, proponents with existing projects may wish to evaluate the benefits of transitioning to the new method.

When will the IFLM apply?

We understand the Department is currently reviewing the submissions received during the public consultation period and are continuing to develop the draft IFLM method.
We will provide an update on the official release of the final methodology determination once available, which is expected at the end of 2026.

Upon its release, the team at Fox and Thomas can provide advice on:

• assessing the eligibility of your property and proposed activities under the new IFLM method;
• navigating the project registration and compliance process; and
• drafting and negotiating documents such as carbon services agreements and ACCU sale contracts.

Please contact our office to discuss how you might be able to leverage this significant regulatory development.