The Authority has released its Review of International Offsets which calls for publication of a National Carbon Market Strategy.
The review provides the Authority’s advice on the use of international carbon offsets, particularly for the Australian Government’s Climate Active program and Indo-Pacific Carbon Offsets Scheme, in the context of the Paris Agreement.
The review puts forward 18 recommendations for the Government to consider, broadly relating to:
- the evolving rules for international carbon trading being put in place to achieve the goals set out in the Paris Agreement, the implications for compliance and voluntary action contributing to national emissions targets and the opportunities presented to enhance the integrity of carbon offsets;
- setting out the Government’s strategy for the role of carbon markets in contributing to achieving Australia’s Nationally Determined Contribution; and
- the eligibility criteria for units accepted under Climate Active and the IPCOS.
To help analyse the integrity of offset schemes eligible under Climate Active and inform the development of the Indo-Pacific Carbon Offsets Scheme, the Authority commissioned EY to provide a stocktake of existing offset schemes and assist the Authority develop and apply an assessment framework, incorporating principles and governance criteria, to a shortlist of schemes.
The Authority also commissioned Gilbert + Tobin to advise on the operation of the Article 6 Rules under the Paris Agreement and Australia’s potential participation in Article 6 activities.
Submissions to this review
The Authority published a consultation paper on 7 March, 2022 and considered the submissions received along with information provided at further consultations with stakeholders. Public submissions can be found on the Authority’s consultation page.
The Authority has sought to conduct the review in an open and transparent manner, including in relation to public consultation and probity matters.
The Authority manages any conflicts of interest in keeping with relevant provisions of the Public Governance, Performance and Accountability Act 2013 and other relevant legislation including the Climate Change Authority Act 2011, Australia Public Service guidelines and Authority policies.
The Authority developed and adopted a Conflict of Interest Management Plan for this review. Members also signed statements acknowledging their obligations with respect to the use of information and conflicts of interest. Members also documented the potential sources of conflict identified by Members, and the Authority’s decisions on managing those potential conflicts. Probity material
The Authority hosted an online public webinar on 7 September 2022 to discuss its findings in the Review of International Offsets.
The event included a presentation, led by CEO Brad Archer and General Manager Eliza Murray, on the recommendations of the report and was followed by a panel discussion that included Katie Eberle, Director of the Indo-Pacific Carbon Offsets Scheme (IPCOS) and Daniel Sheedy Director of the Climate Active Program from the Department of Climate Change, Energy, the Environment and Water.
The panel discussed insights from the report, developments from the IPCOS and Climate Active programs and how the government might look to respond to the Review of International Offsets recommendations.
Participants were also given an opportunity to ask questions of the panel and a recording of the webinar is available here(Opens in a new tab/window).
CEO Brad Archer, has also written an opinion piece sharing his insights on the development of the Review of International Offsets project, which can be accessed in the link below.
- Legislative reviews