2023 Reviews of Climate Schemes
Climate change schemes need to evolve to remain fit-for-purpose in a rapidly changing emissions and abatement landscape. The Climate Change Authority has recommended changes to improve the operation and transparency of key schemes for measuring and reporting greenhouse gas emissions and crediting emissions reductions.
In its latest reviews, the authority says the targeted changes are required to ensure the National Greenhouse and Energy Reporting (NGER) Act 2007 and the Carbon Credits (Carbon Farming Initiative) Act 2011, including the Australian Carbon Credit Unit (ACCU) Scheme, remain fit-for-purpose as Australia aims to meet its 2030 and 2050 emissions reduction targets.
The NGER Scheme, which is used to measure and report greenhouse gas emissions and energy production and use, continues to be integral to meeting Australia’s international energy and emissions reporting obligations, tracking progress on emissions reductions and informing climate change policy development. However, the authority has found there is demand for more detailed emissions and energy data, the potential to improve the accuracy of some emissions estimates and the opportunity to broaden the coverage of the scheme.
The ACCU Scheme credits projects that avoid the release of emissions or remove and sequester carbon from the atmosphere. While ambitious and urgent cuts to emissions are the priority, the Scheme can help smooth and accelerate the transition to net zero emissions.
To ensure that the ACCU Scheme continues to credit real and additional abatement, the authority recommends abatement calculation methods be reviewed and updated to keep pace with developments in science, technology, government policies and markets.
It is the first time the authority’s reviews of the ACCU and NGER schemes have coincided. They form a timely prelude to the authority’s forthcoming advice to government on sectoral pathways to net zero emissions and Australia’s 2035 emissions reduction targets, due for completion in 2024.