At a recent CMI meeting with Assistant Minister (AM) Josh Wilson, one of our members said they had invested over $40 million in climate solutions for the Australian Carbon Credit Unit (ACCU) market and were willing to invest 100s of millions more if only there could be greater certainty. The uncertainty they were most concerned about wasn’t so much, for now, Trumpian or election related (more on those below). The uncertainties were more about ACCU method development and transition arrangements when methods or accounting rules change, eg under government credit modelling tool FullCAM.
At a time when public and private investment in climate solutions is so urgently needed, it was a powerful reminder that while we need policies that assure integrity and prioritise on site decarbonisation, we need to ensure the ACCU framework is investible.
While the rate and nature of change has been frustrating at times, important reforms to integrity and method development are underway. With continuity and concentration over the next twelve months these can accelerate investments in climate as well as nature-based solutions. An important new scientific paper on the contribution grazing management can contribute (see below) should inform a plain English IFLM method out this month, and exposure drafts of updated Savanna and Landfill Gas methods are also likely pending ERAC considerations. We also look forward to further information on the paused FullCAM consultation.
While the latest Greenhouse inventory showed national and direct emissions at Safeguard covered facilities declining, they also need to accelerate as part of international efforts. For that coherent policy and clarity of decarbonisation investment signals are crucial. Fires and floods across Australia in February should be a vivid reminder that we are one of the developed economies most exposed to the costs and impacts of climate change. It is in our national and consumer cost of living interests that all parties and significant independents have coherent climate plans. CMI has set out its six top tests for coherent policies in our election policy priorities.
Like other business, investor and community groups, CMI urges the Coalition to clarify its plans for the Safeguard Mechanism. And we urge from all stronger 2035 targets; accelerated ACCU and Climate Active reforms; alignment of net zero and nature positive policies, and a strategy for the integration of carbon markets and international cooperation in Australia’s diplomatic, trade and foreign aid agenda. BCA recently joined our call for a carbon market strategy.
We met AM Wilson, recently conferred ACCU framework in addition to Climate Active and energy efficiency responsibilities, in Darwin at ICIN’s Savanna Fire Forum. This forum was inspiring at a challenging time for Australian carbon markets with direct and personal stories of the benefits that untied carbon revenue can give to communities and Indigenous youth I was privileged to speak with. In a month of reminders there was also a reminder that Indigenous people either have a legal right or hold an eligible interest across almost 60% of Australia, and as such are decision makers as well as partners in carbon project development.
While significant distractions abound, now is not the time to take the eyes of the prize, or imperative, on national and corporate transition to net zero emissions. As Cyclone Alfred bears down on southern Queensland, Trumpian tornadoes wrench at the international rules-based order as well as domestic institutions, and challenges to net zero commitments manifest on the left and right of the political spectrum. Despite all that it is important to double down on, not tear down recent climate policy reforms to ensure public and private investment in an inclusive and effective transition.
John presented and met with Ryan at ICIN’s Fire Forum—one of many Indigenous youth applying traditional knowledge through carbon and ranger programs to support climate and water solutions.
