Australia cancels millions of controversial ‘carry-over’ Kyoto credits, shuts carbon accounting loophole
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The credits are equivalent to about 150 per cent of the nation’s estimated emissions last year.
PHOTO: REUTERS
CANBERRA – Australia will permanently cancel millions of controversial carbon credits, closing a loophole that could have been used to meet its international climate commitments.
The cancellation of more than 700 million so-called Kyoto credits – equivalent to about 150 per cent of the nation’s estimated emissions last year – means they cannot be used towards the nation’s Paris Agreement goal. Australia will also officially confirm its compliance with its Kyoto Protocol target early next year, after an international review, the energy ministry said Friday.
The government of Prime Minister Anthony Albanese, which came to power in May last year on a platform to end the nation’s reputation as a climate laggard, has set a legally binding target to reduce emissions by 43 per cent from 2005 levels by 2030.
While the Kyoto Protocol has been succeeded by the Paris Agreement, Kyoto carbon credits – which are tradable among countries and organisations – still hold value in some markets and continue to play a role in emissions trading schemes.
Carrying over credits from previous international climate goals toward current targets has typically been seen as a controversial carbon accounting measure, especially considering the infamous “Australia clause” in the Kyoto Protocol.
The so-called Kyoto credits negotiated at the 1997 Kyoto Climate Change Conference allowed Australia to increase its emissions between 1990 and 2012 by 8 per cent – contrary to the international treaty’s aim of mitigating global climate change – and include emissions from land clearing. Critics say they do not represent the emissions reductions required for the country to meet the Paris goal of limiting global warming to 1.5 deg C.
“The Albanese Government has delivered on its election commitment to legislate our ambitious but achievable climate targets,” Energy Minister Chris Bowen said in the statement. “We’re closing the loophole for dodgy accounting tricks.”
Former prime minister Scott Morrison said in 2020 that he was “very confident” Australia could achieve its targets at the time without the need to use the carry-over credits, but never removed them. BLOOMBERG
