The Carbon Market Institute (CMI) has today welcomed the findings of the Climate Change Authority’s (CCA) Review of International Offsets, supporting its call for cooperation on a global carbon market and the need for a National Carbon Market Strategy to guide greater ambition, ensure integrity and address confusion about the role of markets.
CMI CEO John Connor said that active participation in a unified global carbon market would be an important step in Australia’s commitment to the global climate effort, but supported the CCA’s call for a cohesive market strategy, as well as the need to closely align with domestic and international integrity initiatives.
“The report’s findings come at an important time, as the Albanese government enshrines its new Climate Bill in law and as international governments grapple with the implications of the Paris Agreement and how to use Article 6 and compliance carbon markets to meet their Nationally Determined Contributions (NDCs).”
“While the report recognises that these markets are still emerging and not perfect, it acts as a reminder of the significant role that they can play in coordinating business and government efforts to accelerate ambition.”
“The report highlights ways in which Australia, including government, business and the community, can work to ensure international market rules being established now ensure investible, credible and sustainable climate solutions.”
“A National Carbon Market Strategy will ensure greater clarity and integrity in guiding and facilitating this shift,” he said.
This report’s main focus is on the current Climate Active scheme, under which companies are certifying efforts to neutralise emissions and does not recommend use of international offsets in the Safeguard compliance mechanism.
A summary of CMI’s positions can be found in its submission paper. They are:
- To support the net-zero transition, international offsets must be used with demand-side integrity and accompanied by deep cuts to industrial emissions
- Stronger policy settings are needed in Australia to catalyse carbon trading opportunities and support demand-side integrity towards the longer-term goal of net-zero 2050
- International offsets used in Australia should be sourced from schemes or standards with built-in guardrails to prevent adverse impacts, ensure informed consent, and guarantee enduring co-benefits and support sustainable development and capacity building for host communities and countries
- Voluntary corporate purchase of international offsets should be additional and not counted towards Australia’s NDC
- Climate Active should continue to evolve to encourage and represent highest-integrity, additional voluntary corporate action
- Robust, predictable governance of the criteria governing Climate Active offset eligibility, including regular public and transparent review of these principles to ensure they keep pace with evolving global best practice, is required to lend some predictability to voluntary corporate actors in the uncertain and evolving context of global carbon markets in the post-Paris era
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a unique independent member-based organisation that is an industry association that also promotes best practice for business leading the transition to net zero emissions. Its over 140 members include primary producers, carbon project developers, Indigenous corporations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries developing decarbonisation and offset strategies. CMI also recently released its.
For further information, contact Thomas Hann on 0408 880 536 or thomas.hann@carbonmarketinstitute.org
