The Times Australia
The Times World News

.
The Times Real Estate

.

Chubb review of Australia's carbon credit scheme falls short – and problems will continue to fester

  • Written by Andrew Macintosh, Professor and Director of Research, ANU Law School, Australian National University
Chubb review of Australia's carbon credit scheme falls short – and problems will continue to fester

An independent review[1] of Australia’s controversial carbon credit system released today concluded the scheme is essentially sound. But key questions remain unaddressed – a fact that will continue to undermine confidence in Australia’s central climate policy.

The review, led by former chief scientist Ian Chubb, followed concerns[2] raised by our research team that the scheme lacked integrity and was not delivering genuine reductions in greenhouses gas emissions. The review panel, however, says it does “not share this view”.

Climate Change and Energy Minister Chris Bowen on Monday said the government would implement all 16 of the review panel’s recommendations.

But more must be done to ensure the Albanese government truly delivers the emissions reductions it has promised.

smoke stack in front of setting sun
The federal government has accepted the review’s recommendations – but more must be done to ensure genuine carbon abatement. Charlie Riedel/AP

Carbon credits underpin our climate policy

Australia’s carbon credit system is central to reaching the federal government goal of 43% emissions reduction by 2030 and net-zero by 2050.

The scheme provides carbon credits to projects that reduce greenhouse gas emissions using a number of approved methods, such as avoiding deforestation. These credits can be sold on the carbon market to entities that want to offset their emissions.

In March last year, our research team raised serious concerns[3] about the scheme. In a series of papers[4], we outlined systemic flaws in the way carbon credits were issued.

We concluded Australia’s Emissions Reduction Fund – under which the scheme operates – has serious governance flaws, has issued a large number of low integrity credits and is wasting billions of dollars in taxpayers’ money.

Our analysis focused on three of the fund’s most popular methods – avoiding deforestation, human-induced regeneration of native forests and combusting methane from landfills. These account for 75% of the credits issued under the scheme.

We found that more than 70% of the credits issued under these methods do not represent genuine emissions abatement.

Following that criticism, in July last year, the Albanese government commissioned an independent review of the scheme. Those findings were released today.

farm scene with trees and crops
The author’s research found more than 70% of the credits issued under a number of carbon farming methods do not represent genuine emissions abatement. Shutterstock

Read more: We blew the whistle on Australia's central climate policy. Here's what a new federal government probe must fix[5]

A ‘bewildering’ assessment

The panel concluded[6] the carbon credit arrangements are largely sound. How the panel reached this conclusion is hard to fathom.

Discussion of the rules governing human-induced regeneration, landfill gas and avoided deforestation projects spans less than six pages.

The report does not contain references to the evidence relied upon to reach its conclusions, and includes very little analysis to support its findings. And importantly, the panel does not address key questions around the integrity of the scheme’s rules.

Bewilderingly, in its assessment of the methods, the panel does not refer to the findings of a review[7] it commissioned from the Australian Academy of Science to inform its considerations.

The academy reviewed the three main methods my research team analysed and a fourth, concerning carbon capture and storage.

It found numerous flaws in the methods and the associated governance processes. For example, consistent with our analysis, it found a risk the human-induced regeneration method is crediting vegetation change brought on by rainfall, rather than project activities.

The academy also found problems with the landfill gas method – namely, that so-called “baselines” used to calculate carbon abatement don’t adequately account for other financial and regulatory incentives offered to operators for capturing and combusting methane.

This means credits are sometimes issued for actions the industry would take anyway. As I wrote[8] in The Conversation in September last year, so great are the problems with the landfill gas method that several large companies profiting from it have called for[9] changes to the system.

The academy is not alone in recognising these problems. The CSIRO[10] and Wentworth Group of Concerned Scientists[11] also found problems with the rules governing the issuance of credits.

The review panel acknowledged the scientific evidence criticising the carbon credit scheme, but says “it was also provided with evidence to the contrary”. Yet it did not disclose what that evidence was or what it relates to. The public is simply expected to trust that the evidence exists.

pipes collecting methane from site
The landfill gas industry says credits are sometimes issued for actions the industry would take anyway. Shutterstock

Read more: 'Untenable': even companies profiting from Australia's carbon market say the system must change[12]

Integrity is essential

The panel recommended significant changes to governance arrangements under the carbon credits scheme. It’s hard to understand the need for such changes if there are no material problems with the credits.

Nonetheless, most recommended governance changes are welcome, including:

  • reducing the roles performed by the Clean Energy Regulator, to “enhance confidence and transparency” and reduce potential conflicts of interest

  • amend the scheme’s legislation to improve transparency to support greater public trust and confidence in the scheme.

But these governance changes are not enough. Measures should be taken to prevent low-integrity credits being issued to existing projects. And polluting facilities should not be allowed to use low-integrity credits to meet their emission reduction obligations.

Without these changes, problems with the scheme will continue to fester, jeopardising the operation of the government’s climate policy.

Read more: Australia relies on controversial offsets to meet climate change targets. We might not get away with it in Egypt[13]

Read more https://theconversation.com/chubb-review-of-australias-carbon-credit-scheme-falls-short-and-problems-will-continue-to-fester-197401

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping