Carbon credits, in theory, can be a tool to help abate the climate crisis by incentivizing reductions in greenhouse gas emissions. However, their effectiveness can vary widely depending on how they are implemented and regulated. Australia’s primary carbon offsets method has been deemed a global failure, offering minimal to no assistance in combating the climate crisis, a comprehensive new study has found.
Conducted by 11 academics, the research scrutinised the prevalent technique utilised for generating offsets in Australia, known as “human-induced regeneration”. This method, intended to rejuvenate arid and semi-desert forests, has largely fallen short of its promise to enhance tree cover between 2015 and 2022.
Published in the esteemed nature journal Communications Earth & Environment, the peer-reviewed study examined 182 projects across arid regions, revealing that nearly 80 percent of them showed either negligible growth or regression in forest cover. Consequently, these projects fail to deliver the emission reductions promised, undermining the credibility of polluting companies claiming to mitigate their climate impact through purchased offsets.
Australia's forest regeneration approach, ranking as the world's fifth largest nature-based offsets programme, spans approximately 42 million hectares, surpassing the landmass of Japan. By June of the previous year, over 37 million carbon credits, valued at $750 million to $1 billion, were issued for these projects. The global voluntary carbon offsets market is expected to touch USD 250 billion by 2030.
The findings underscore the mounting scientific evidence, revealing the limitations and potential flaws of offset schemes, including the risk of crediting non-existent or non-additional abatement efforts. According to researchers, the disparity between credited carbon sequestration and actual forest cover signals a troubling scenario where carbon pollution is exacerbated rather than alleviated.
Calling upon the Australian government to cease issuing carbon credits to regeneration projects in uncleared areas, the researchers have now advocated for safeguarding the integrity of Australia's carbon market and decarbonization endeavours. In response, the Clean Energy Regulator, overseeing the scheme, has expressed confidence in the integrity of the method, citing previous reviews that affirm its validity.
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