Australian climate adviser backs international offsets

The Australian government's climate adviser has recommended the international carbon offset market be used to meet the country's greenhouse gas (GHG) emissions reduction target of 43pc by 2030 from 2005 levels. It also called on Canberra to publish a national carbon market strategy to help embed carbon pricing in everyday decision making.

The Climate Change Authority's (CCA) review of international offsets finds the international carbon market is still evolving in response to the 2015 Paris climate change agreement, calling for publication of a national carbon market strategy that makes the most of the prospect for Australia to accelerate its ambitions on emissions reductions.

"The review finds that while carbon is priced and traded in Australia, the market is fragmented, inefficient and complicated," the CCA said. The review was commissioned by the previous climate change minister Angus Taylor, who was part of the government that repealed Australia's carbon tax in 2014.

The review of international offsets is also separate to another investigation into Australia's main carbon offset scheme. Australian Carbon Credit Units generated under the Emissions Reduction Fund have come under scrutiny for allowing credits from carbon capture and storage projects.

The CCA is recommending the government publish a national carbon market strategy, including making Australia's carbon price more visible, uphold the integrity of offsets in how they are generated and used, as well as clarify the role of domestic and international units in the mix of voluntary action and compliance mechanisms to accelerate Australia's decarbonisation.

"While achieving deep emissions reductions is critical, carbon offsets are an important and complementary part of the approach to reaching net zero emissions and beyond," said CCA chief executive Brad Archer.

The previous coalition federal government, in outlining its net zero GHG emissions target by 2050, forecast between 10-20pc of the abatement would be achieved through domestic and international carbon credits. The current Labor party government, elected in May this year, has yet to detail how it will achieve the net zero GHG emissions target.

By Kevin Morrison