Two new Savanna Fire Management methods (sequestration and avoidance, and avoidance-only), first proposed in August 2025, have now been finalised by the Assistant Minister following a public consultation period and review by ERAC. The new methods became active on 10 April 2026, with the 2018 methods to be revoked accordingly.
On Friday, DCCEEW hosted a webinar outlining the operation of the new methods, with two notable changes to the exposure draft:
- Extended crediting period of up to 25 years (through to 2051) for existing projects transferring to the new methods.
- The introduction of a ‘sequestration bank’ mechanism, allowing increases in carbon stock to be credited in a smoothed manner over the remaining life of the project, including the back-crediting of historical sequestration for transitioning projects.
DCCEEW has therefore adopted a “smoothed” backcrediting approach, initially proposed by RepuTex (August 2025), to minimise permanence risks for project proponents and reduce broader market disruption (via the impact of a large injection of back-credited units).
In this Briefing note, we summarise the key changes and market impacts of the new SFM methods relative to our current Central Case outlook and recent Scenario Report.
Extended crediting periods for transitioning projects, eligible interest-holder
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