The National Carbon Offset Standard has potential to promote voluntary action to reduce Australia’s greenhouse emissions – however a number of implementation issues need to be urgently addressed.

The Voluntary Carbon Markets Association believes the market needs to be credible and accountable so that consumers are getting what they pay for, and so that Australian and global carbon emissions are genuinely reduced.  An expanded voluntary carbon market will allow more organisations and individuals to reduce emissions, and even achieve carbon neutrality. However this can only occur if there is a credible, comprehensive and robust National standard to set the rules.

In its current form, the NCOS creates a disincentive for many organisations to pursue ‘Carbon Neutrality’. Guidance for carbon accounting is inconsistent and limited creating a potential credibility gap for what may end up as an expensive exercise of uncertain value. The lack of scope to generate offsets within Australia will suppress many potential Australian abatement projects and technologies. This will effectively drive investment in offset projects from Australia to other countries where the abatement is recognised.  

This situation has been brought into sharp focus for those Greenhouse Friendly™ abatement providers who, having previously demonstrated financial and regulatory additionality to fulfil the programme requirements, now find themselves without an income stream or any accreditation scheme to assist in the mitigation of project costs.

The issues that need to be addressed for the NCOS to be effective and ensure consumer confidence are:

·       Robustness and broad coverage

·       Clear definitions, terminology and methodology

·       Transparency and accountability for treatment of GreenPower

·       Eligibility and accreditation of Australian based offsets projects

·       Ensuring ‘additionality’ of voluntary action

·       Accessible, low-cost accreditation

·       Removal of disincentives

The full VCMA Report ' Review of the National Carbon Offset Standard' is available below.