Guest Post: After nearly 10 years of debate, COP29’s carbon trading deal is seriously flawed

 

Kate Dooley, The University of Melbourne

Negotiators at the COP29 climate conference in Baku have struck a landmark agreement on rules governing the global trade of carbon credits, bringing to a close almost a decade of debate over the controversial scheme.

The deal paves the way for a system in which countries or companies buy credits for removing or avoiding greenhouse gas emissions elsewhere in the world, then count the reductions as part of their own climate efforts.

Some have argued the agreement provides crucial certainty to countries and companies trying to reach net-zero through carbon trading, and will harness billions of dollars for environmental projects.

However, the rules contain several serious flaws that years of debate have failed to fix. It means the system may essentially give countries and companies permissions to keep polluting.

Guest Post: The unsafe Safeguard Mechanism: how carbon credits could blow up Australia’s main climate policy

 

James Adams/Unsplash

Andrew Macintosh, Australian National University and Don Butler, Australian National University

This article is part of a series by The Conversation, Getting to Zero, examining Australia’s energy transition.

A time bomb is ticking inside the Albanese government’s climate policy. When it explodes, Australia will fall short of its climate targets and leave a gaggle of investors shirtless.

The problem arises from a poorly understood aspect of the net zero transition: carbon credits or offsets.

The centrepiece of Australia’s climate policy is a carbon pricing scheme known as the Safeguard Mechanism. It places caps on the emissions of around 220 of the country’s largest mining, gas and industrial facilities, based on the emissions intensity of their operations. Every year through to 2030 these caps will decline by between 1% and nearly 5%.

The facilities have two ways to keep their emissions within the caps. They can reduce them, or they can buy and surrender one of two forms of credits, the most significant being Australian carbon credit units (ACCUs) issued under Australia’s carbon offset scheme.

Chubb Review into the integrity of Australian Carbon Offsets sends mixed messages

Chubb review into the integrity of carbon offsets ignores the elephant in the room argues the Climate Council: too many major emitters are buying ACCUs so that they can continue to pollute as usual.

“The Chubb Review has provided some positive recommendations for improving the integrity and transparency of carbon credits. But the most important question is: where and how will carbon credits be used?" says Climate Council Head of Advocacy Dr Jennifer Rayner

“Big polluters shouldn’t be able to keep polluting as usual by offsetting much or all of their emissions under the Safeguard Mechanism."

The Chubb Review found the carbon offsets scheme was "fundamentally" well designed when it was first introduced, but called for more data transparency which would improve integrity, recommending that "the default should be that data be made public, including carbon estimation areas" and the government should consider a national platform to share this information.

Is the petrol in your car from Ampol really carbon neutral? 'Carbon-Neutral' Fossil Fuels & State-Sponsored Greenwashing

Polly Hemming from the Australia Institute outlines the problem with Ampol's greenwashing, but also highlighting this is a problem in lack of regulation allowing the greenwashing for use of dodgy carbon credits to meet dodgy net zero targets.

Both Ampol and the Federal Government should read the Report on Addressing Greenwashing and net-zero pledges at non-state levels: the High Level Expert Group on Net Zero Emissions Commitments of Non-State Entities released its report to the UN Secretary-General on 9 November. 

It is Important for enforcing meaningful emissions reduction and targets by businesses, regional, city and local governments. (Addressing Greenwashing and net-zero pledges at non-state levels: New report by UN Expert group at COP27)

See also Coverge of the UN greenwashing and netzero report and its implication for business, state and local governments. at The Conversation.

Watch the video....

Carbon Credits & Offsets | Honest Government Ad

All the lowdown and analysis on how the Australian Government is using carbon credits and offests to undermine climate action.

Detailed analysis in this Honest Government Ad video by The Juice Media.

There is also a detailed podcast interview with Polly Hemming from the Australia Institute on the subject to further fill you in on how the Scott Morrison Government and Emissions Reduction Minister Angus Taylor have corrupted an essential and needed action to maintain fossil fuel production and profits.