The Times Australia
The Times World News

.

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

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...

The Role of Your GP in Creating a Chronic Disease Management Plan That Works

Living with a long-term condition, whether that is diabetes, asthma, arthritis or heart disease, means making hundreds of small decisions every day. You plan your diet against m...

Troubleshooting Flickering Lights: A Comprehensive Guide for Homeowners

Image by rawpixel.com on Freepik Effectively addressing flickering lights in your home is more than just a matter of convenience; it's a pivotal aspect of both home safety and en...

My shins hurt after running. Could it be shin splints?

If you’ve started running for the first time, started again after a break, or your workout is more intense, you might have felt it. A dull, nagging ache down your shins after...

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...

Why You’re Always Adjusting Your Bra — and What to Do Instead

Image by freepik It starts with a gentle tug, then a subtle shift, and before you know it, you're adjusting your bra again — in the middle of work, at dinner, even on the couch. I...