Trust in Climate Active eroded, industry heavyweights demand carbon scheme reform

The federal government’s carbon emissions scheme has drawn criticism from two industry heavyweights, who say reforms are needed to rebuild confidence.

AgriProve founder and managing director Matthew Warnken.

The federal government’s carbon emissions scheme has drawn criticism from two industry heavyweights, who said trust had been eroded within the sector and reforms were needed to rebuild confidence.

Australia’s largest developer of carbon market projects, GreenCollar, this week broke ranks with the industry to accuse green activists of hijacking the government’s Climate Active emissions program as part of an anti-fossil fuels agenda.

One of GreenCollar’s competitors, Climate Friendly, also weighed in, saying polluters trying to cut emissions through decarbonisation and also participate in carbon schemes were backing away from programs like Climate Active.

Leading carbon developer AgriProve said there was work to be done immediately to get the signature scheme back on track. “I think the missing piece is the challenge now facing Assistant Energy Minister Josh Wilson on rebuilding industry confidence in the Department of Climate Change, Energy, the Environment and Water,” AgriProve chief executive Matthew Warnken said. “Arguably DCCEEW mismanagement of Climate Active and also mismanagement of implementation of Chubb Review recommendations has tarnished the reputation of the Department.”

Pressure is now growing on the federal government to scrap or heavily reform the program after dozens of big businesses walked away.

Macdoch executive chairman Alasdair MacLeod.

Mr Wilson this week said the government recognised the industry wanted certainty on Climate Active reforms. He has held a series of meetings with organisations such as the Carbon Market Institute, assuring the industry that there were no plans to dismantle Climate Active.

“There needs to be a mechanism for industry to participate in accelerating efforts towards net-zero. Climate Active becomes the credentialling function for recording and promoting these efforts. Green hushing is the bigger risk than green washing because it normalises a lack of ambition, innovation and ultimately action,” Mr Warnken said.

Macdoch Australia executive chair Alasdair MacLeod said reforms were needed for the Climate Active program.

“Climate Active rightly has come under criticism for the integrity of credits that some companies have been using; there are indications the government will address these integrity issues to bring the scheme more into line with the rules of the safeguard mechanism,” Mr MacLeod writes in The Australian. “Such a move should be welcomed because it will reverse the distrust that has developed around Climate Active.”

Mr MacLeod, formerly the publisher of The Australian and The Daily Telegraph, called for increased investment in market frameworks to boost Australia’s carbon opportunity.

“The regulator has taken on one recommendation, to develop an Integrated Farm and Land Manage­ment methodology, that will allow landholders to earn carbon credits through planting trees and improving soils. This is exactly the sort of investment our farmed landscapes need in the face of increasing climate stress and that farmers need so they can diversify income streams and build more resilient businesses,” he said.

Farms and projects funded by Macdoch’s private investment arm are distinguished by soil carbon schemes that involve improving grazing practices to sequester carbon dioxide from the atmosphere into the soil in order to obtain carbon credits.

GreenCollar said carbon markets remained the right mechanism to address climate change and urged a compromise to ensure hard work was not wasted.

The rift over carbon credits, bought by polluters to offset their emissions, threatens to derail a key plank of Labor’s bid to achieve net-zero emissions by 2050.

“The Climate Change Authority is due to release its latest findings on progress to net zero; all the estimates seem to point to Australia falling behind its 2050 target by quite a large margin,” Mr MacLeod said.

“There is significant potential to use our vast land resources to bring that deficit down.

“The government has a unique opportunity to use carbon markets to achieve the significant goals of driving further investment in landscapes and hitting net zero.”