The Australian Government has formally announced a net-zero emissions target by 2050, but no stronger commitment to reduce emissions by 2030 – or new policies to drive deeper emissions cuts. Instead, the government proposes to rely on advancements in technology (both defined and unspecified) to reach net-zero emissions, along with the purchase of between 62-125 million international and/or domestic carbon offsets to balance residual emissions in 2050.
The government’s use of carbon offsets will be highly dependent on the outcomes of the 26th Conference of Parties (COP26), running from 31 October to 12 November, which – among other things – will seek to reach agreement on a “rulebook” for the development of an international carbon market. This will include how countries (and private sector entities) may use carbon offsets, and avoid double counting, while claiming the benefit of emissions reductions inside or outside the scope of their Nationally Determined Contributions (NDCs).
Negotiations will also consider how carbon offsets created under the former Kyoto Protocol – including Certified Emissions Reductions (CERs) – may transition to the new system. This remains an area of interest for Australian market participants, with Australian companies voluntarily surrendering over 24 million CERs since 2012 – and
Unlock our award-winning research insights
Request access to learn more about our research services, or click here to register for free access to our articles and price information.