The Carbon Market Institute welcomed the settlement reached between Parents for Climate and EnergyAustralia in relation to its Go Neutral carbon offset product and urged the Government to accelerate reforms to its Climate Active certification program to shift it from carbon neutral to net zero emission reduction alignment.
“EnergyAustralia’s withdrawal of its Go Neutral product, prioritisation of direct decarbonisation initiatives and commitment towards clearer marketing broadly aligns with the shift in how companies invest in carbon markets as part of a credible net zero transition strategy,“ said John Connor, CEO CMI.
“While investment in land based or other carbon sequestration credits will play a necessary role in reaching net zero emissions, these activities must complement and enhance rather that substitute effective decarbonisation efforts,” Connor explained.
“It remains vital that any carbon credits procured are high integrity, reflecting regulatory and best practice standards. This helps to ensure that any claims made are accurate, trustworthy and evidence-based,” Connor added.
CMI recognised the importance of legal and regulatory scrutiny of corporate claims and investments, as Australian companies navigate the complexity of the net zero transition.
“These claims, and the actions that underpin them, directly impact the substance and speed of our collective efforts to limit dangerous global heating, and adapt to its unavoidable impacts, in line with the Paris Agreement. Misleading or false claims erode confidence and competitively disadvantage companies taking credible steps to decarbonise, impacting their ability to attract capital and realise long-term value in a net zero economy,” said Connor.
CMI highlighted that while best practice guidance on net zero and the credible use of carbon credits continues to evolve internationally, a range of best practice guidance is available to companies now.
“Through the vital work of the International Organization for Standardisation, the VCMI and IC-VCM, we are beginning to see a maturation and convergence in best practice corporate net zero that should enable companies invest in climate solutions with confidence,“ Connor added.
CMI reiterated its call for the Australian Government to prioritise strengthening its Climate Active certification program to support consumer trust and build business confidence.
“In this new term of government, Australia has a unique opportunity to demonstrate international leadership through Climate Active and drive high integrity and high ambition approaches to voluntary corporate climate action and the use of carbon markets.”
“Reforming Climate Active from a carbon neutral certification towards a net zero framework will build investment and community confidence and provide a blueprint for regional governments across the Asia-Pacific region,“ Connor concluded.
