Chubb review avoids key issues. Carbon offsets cannot replace reducing fossil fuel pollution.

Today’s release of the Federal Government’s Chubb Review into Australia’s carbon credit scheme reinforces the fact that carbon offsets do not offer a substitute for directly reducing climate pollution by coal and gas companies.

Solutions for Climate Australia Director Dr Barry Traill said carbon offsets could become a major ‘get out of jail free card’ for the fossil fuel industry if the Federal Government’s upcoming reform of the ‘Safeguard Mechanism’ doesn’t restrict their use.

“Carbon offsets were designed to be a small part of our emissions reduction plan - they should be a last resort when pollution genuinely can’t be directly reduced through changing practices or new technology.

“The Chubb Review recognises flaws in Australia’s carbon offset methods and recommends some changes to improve them, but the terms of reference of the Review missed the foundation issue: carbon offset credits should never be a system that assists the fossil fuel industry to keep polluting.

Dr Traill pointed to the lack of equivalency between reducing fossil fuel emissions and carbon sequestered or abated through offset methodologies.

“Growing or protecting trees that take in carbon dioxide is not the equivalent of stopping putting fossil fuel pollution into the air.  There are no guarantees that the trees can be protected permanently - for example there could be losses through wildfires and drought, both of which are already increasing with global warming.  

“It’s like letting a gas company knock your house down on a promise they’ll start building one which will be ready in a few decades’ time. Will they do it? Will it be the same quality? The priority is to not knock the house down in the first place.

“If there’s one message Minister Bowen’s review of Australia's carbon offset system tells us it’s this: the big coal and gas polluters are still getting away with not reducing their pollution.

“These huge fossil fuel companies are making record profits digging Australian coal and gas out of the ground, all while seeking to use carbon offsets to dodge their responsibilities to reduce emissions. 

“We simply can’t trust coal and gas companies with unfettered access to carbon offsets.”

In December, forty-eight climate change advocacy organisations penned a letter to CEOs of the 12 biggest gas and coal company polluters seeking them to support strengthened reform of the Safeguard Mechanism, including a call to stop unfettered use of so-called ‘carbon offsets’.

Solutions for Climate Australia is calling on the Albanese Government to strengthen regulation on polluting facilities in the Safeguard Mechanism to cut climate pollution in line with Australia’s commitment to reduce emissions by at least 43 per cent by 2030.  This includes stopping using unfettered use of carbon ‘offsets’ to seek to avoid taking responsibility for their climate pollution.

Media contact:

Director of Solutions for Climate Australia Dr Barry Traill: 0448 793 334. 

Deputy Director of Solutions for Climate Australia Sophia Walter: 0476 260 028.

Background information:

Safeguard Mechanism: The Federal Government is currently undertaking reform of the Safeguard Mechanism, which is due to be introduced by July this year. This is potentially the most significant reform to Australia’s climate policy this term of government because, if operating as it should, it would  apply a cap on the emissions of Australia’s most polluting facilities, one that tightens over time.

Background on the Safeguard Mechanism: https://www.solutionsforaustralia.net/news/safeguard-mechanism 

Chubb Review: A review of the Federal Government’s carbon credit system, released today. The Review had limited terms of reference, missing crucial questions of integrity and the use of offsets, and focusing on the governance, creation methods and reporting arrangements for Australian Carbon Credit Units (ACCUs).

Copy of Chubb Review: https://www.dcceew.gov.au/climate-change/emissions-reduction/independent-review-accus

Carbon offset: an action intended to compensate for the emission of carbon dioxide into the atmosphere as a result of industrial or other human activity. Examples include reforestation or reducing emissions-intensive bushfires.

More information: https://www.climatecouncil.org.au/resources/carbon-offsetting-worthwhile/