Carbon Credit Scheme Review Urgently Required

Australia
Uncategorized
Environmental, Regulatory & Government, Social and Governance (ESG)

(10 January 2023 – Australia) A review of Australia’s A$4.5 billion carbon credit trading scheme has concluded the system is “essentially sound” yet in order to boost confidence it requires an urgent review into regulatory settings and transparency.

The Australian Carbon Credit Units scheme has drawn criticism from environmental groups and others associated with the program, concerned it was wasting taxpayer funds without cutting carbon emissions.

Australian Energy Minister Chris Bowen appointed former chief scientist Ian Chubb in Q3 2022 to carry out a review of Australia’s carbon credit scheme following allegations by whistle blower Andrew Macintosh that most credits issued by the Clean Energy Regulator (CER) were flawed.

“The Australian Government purchasing of ACCUs should be moved out of the CER and into another Australian Government body to avoid actual or perceived conflicts of interest” the Review found.

“The multiple roles of the CER, in developing methods, regulating projects and issuing ACCUs, and administering government purchase of ACCUs, results in potential conflicts of interest and risks reduced confidence in scheme arrangements and governance.”

“They‘re recommending sweeping governance changes but they’re trying to maintain there’s nothing wrong with the projects and the credits. That makes no sense to me. It’s illogical” Mr Macintosh stated.

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