Carbon Markets

Australia’s net-zero target and COP26 – The key issues for the local carbon market

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

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 almost 9 million this year – despite criticisms over the low additionality of some projects and claims of corporate greenwashing under the scheme.

In this update, we provide analysis of the Australian Government’s recently released net-zero statement, and the implications for COP26, including the double counting of offsets at the country and corporate level, and the growing push for a contribution-claim model where companies may help countries to meet their NDCs.

Restricted Access

This is a subscriber report. Please login to access this content.

Become a Carbon Insider today

Unlock our latest analysis, briefings and price information with our new Carbon Insider service.

Click below to see our plans.

Sign up for regular insights

LATEST UPDATES

  • Carbon Markets

    By the numbers – A closer look at 2021 in the Australian carbon market

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    2021 was a year of records in the Australian carbon market, with prices, volumes and […]

    Research Insights | January 18th, 2022
  • Carbon Markets

    MARKET UPDATE: Australian Carbon Offset Market Report: Dec – Jan 2022

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, Our latest Australian Carbon Offset Market Update has now been published. The Australian […]

    Research Insights | January 11th, 2022
  • Carbon Markets

    Merry Christmas and holiday support / office hours

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, We hope that the festive season has been treating you well, and we […]

    Research Insights | December 22nd, 2021
  • Carbon Markets

    MARKET UPDATE: Australian Carbon Offset Market Report: Dec 6 – Dec 17, 2021

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    Dear Subscriber, Our latest Australian Carbon Offset Market Update has now been published. The price […]

    Research Insights | December 22nd, 2021
  • Carbon Markets Outlook

    OUTLOOK: Long-term Australian carbon price, supply and demand outlook

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The Australian carbon market has experienced a major bull run over the course of calendar […]

    Research Insights | December 20th, 2021
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone