'Like the subprime mortgage crisis': Most of Australia's carbon credits are junk, experts say

This article exposes a critical flaw in Australia’s safeguard mechanism, where major polluters can purchase dubious carbon credits based on existing vegetation rather than actual new tree growth. Critics argue that the government’s decision to allow credits for “trees grown inside other trees” creates a massive supply of low-integrity offsets. This practice contradicts independent review recommendations intended to ensure environmental accuracy, effectively enabling companies to claim emission reductions that are largely fictitious. The situation is likened to a financial crisis driven by a lack of transparency and quality control, with experts warning that the scheme floods the market with junk assets. By refusing to limit the issuance of these questionable units, the government ensures a steady, cheap supply for heavy emitters. This economic strategy prioritizes affordable offsets for industry over genuine climate action, allowing coal and gas companies to maintain their operations while appearing compliant through paper-based abatement. This case is highly relevant to greenwashing as it illustrates how systemic regulatory failures and deliberate loopholes can legitimize false environmental claims. When authorities permit the counting of non-additional carbon sinks, they enable corporations to mask their true environmental impact. This not only undermines the integrity of national climate policies but also demonstrates how greenwashing can be institutionalized, turning a vital climate tool into a mechanism for maintaining business-as-usual emissions under the guise of sustainability.

Source: crikey.com.au
Published on 2023-03-04

'Like the subprime mortgage crisis': Most of Australia's carbon credits are junk, experts say

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