🇦🇺Australia

Verification Rejection and Project De-Registration

3 verified sources

Definition

VVBs issue findings for non-conformities. If findings cannot be closed before scheme approval, verification fails[2]. Per ACCU Scheme rules, projects must be new, beyond business-as-usual, not legally required, not subsidized by specified government programs, and not excluded activities[8]. Failure on *any* criterion results in permanent ineligibility.

Key Findings

  • Financial Impact: Estimated AUD $3,000–$10,000 sunk cost per failed project (measurement, reporting, third-party consultancy, VVB gap analysis). For portfolios: 5–10% rejection rate × average AUD $5k cost = AUD $2.5k–$5k per 10 projects.
  • Frequency: Estimated 5–10% of ACCU submissions fail verification or are deemed ineligible before issuance.
  • Root Cause: Misunderstanding of 'business-as-usual' baseline; projects failing additionality tests; incomplete understanding of government subsidy exclusions; poor methodology selection.

Why This Matters

The Pitch: Regenerative Design projects lose 100% of invested verification costs (AUD $3k–$10k per project) when VVBs reject submissions due to eligibility oversights (e.g., project deemed not-beyond-business-as-usual). Pre-submission compliance audit eliminates rejection risk.

Affected Stakeholders

Project proponents, Carbon accountants, VVBs (reputational risk if high rejection rates)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Verification Non-Compliance and Credit Issuance Failure

Estimated AUD $10,000–$50,000 per project delay (lost revenue from 4–8 week verification cycle; typical ACCU projects worth AUD $50k–$500k annually). Recurring: 15–30% of submissions face initial findings requiring rework[2].

Non-compliance with EPBC Act

AUD 10,800 - 1,100,000 civil penalty per offence; AUD 50,000+ rework costs per project

Rework from Inaccurate Baseline Mapping

AUD 20-100 hours rework at AUD 200/hr = AUD 4,000-20,000 per iteration cycle

Idle Time During Manual Site Observation

40-80 hours/site at AUD 150/hr team rate = AUD 6,000-12,000 opportunity cost per project

Certification Application Cost Overrun

AUD 20,000 - 100,000 per project in audit and consultant fees; 100-200 hours manual data collection

Certification Delay Payment Drag

AUD 10,000-50,000 per project in delayed payments; 60-90 days extra Accounts Receivable

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