An Australian carbon offset provider says that the Coalition’s inertia on climate change policy is ruining the offset industry. Andrew Grant from CO2 Australia says that the uncertainty from the Coalition putting its climate policy on hold has led to a dramatic contraction of the industry.
CO2 Australia owns 26,000 hectares of carbon forests and is a top provider of carbon offsets in the country. Speaking with the Bush Telegraph, Grant describes the situation as ‘awful’ and says that the policy uncertainty and inaction is hampering investment in the sector.
The Direct Action plan was published in 2010 under the previous government. The $2.9 billion plan stated that soil carbons would be a major element in the overall strategy to cut CO2 emissions by 5% by the year 2020. The plan included measures to purchase carbon offsets through a reverse auction system from different providers, including landholders such as CO2.
Without the Senate first repealing Labor’s carbon-pricing scheme, however, the policy is highly unlikely to go ahead. The Climate Institute’s Corey Watts has observed that it may be mid-2014 before the Senate votes on the carbon-pricing scheme.
Even then, a repeal of the tax may not occur. Watts warns that Australia is risking international embarrassment if it does not demonstrate how it will match the set targets for emissions reductions.
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