ALCA supports proposed changes to Australia’s carbon purchasing framework but recommends a key amendment to ensure environmental and public benefits are properly valued alongside carbon outcomes.
The Australian Government is proposing to change how it buys carbon credits. Instead of always selecting the cheapest option (“lowest cost”), it would choose options that provide the best overall value for money.
ALCA has been advocating for this change and is supportive. Focusing only on the cheapest projects can miss opportunities to deliver broader public benefits, such as improving biodiversity.
However, for the proposed shift from “lowest cost abatement” to “value for money” to be effective, the current requirement to “maximise the amount of carbon abatement that the Commonwealth can purchase” is at odds with this approach. If the Government focuses solely on maximising volume, it will still tend to choose the cheapest options, rather than those that deliver the best overall outcomes.
ALCA therefore recommends changing this requirement so that the Government aims to optimise, rather than maximise, the amount of carbon it purchases. This would allow it to balance quantity with quality and additional benefits.
