Government to review carbon market labelled ‘fraud on the environment’

The Federal Government has announced a review into Australia’s carbon credit market.

The Federal Government has announced a review into Australia’s carbon credit market. Picture: Martin Ollman

The Federal Government will review the carbon credit market after a prominent professor labelled some carbon credits “a fraud on the environment”.

Farmers for Climate Action has welcomed the announcement, saying buyers needed to trust carbon credits were real for farmers to be able to sell them

“Any market needs to have strong authenticity. Those markets that don’t have that are the ones that collapse,” Farmers for Climate Action chair and NSW sheep farmer Charlie Prell said.

Farmers for Climate Action, which represents 7500 farmers nationwide, is also hopeful the review will help guide the carbon market to become less complicated and expensive.

“At the moment, there’s not very many farmers who are involved in the carbon market, because it’s so complicated and expensive to get into. I think what this review is doing is hopefully undoing some of the complication,” he said.

Federal Climate Change and Energy Minister Chris Bowen told the Carbon Market Institute conference today the review would take six months, and would be led by Australian chief scientist and senior academic Professor Ian Chubb.

“If Ian Chubb finds problems, they will have to be fixed,” Mr Bowen said.

“There will be a carbon market. It will become bigger, not smaller, so don’t walk away. We’re just making sure we get it right,” he said.

The announcement comes after Australian National University professor Andrew Macintosh said in March about 75 per cent of Australian Credit Units issued to date were “devoid of integrity”.

In April, Prof Macintosh raised concerns about a project providing offsets to the Coles carbon neutral beef range.

Carbon neutral beef and wool producer Mark Wootton, who does not supply beef to the Coles brand, said at the time if consumers came to view carbon projects as “greenwash”, it could cause lasting damage to all carbon-neutral producers.

“You’re as good as your credibility in this space,” Mr Wootton said.