Independent review of carbon credits - Does it really do anything useful?

A review of Australia's carbon credit system found that the scheme was doing so well overall that it silenced claims that the system lacked integrity.

The fees paid to offset emissions in relation to a purchase such as flights can go towards different projects such as tree planting. Credit: Rickyo

Australia's system of carbon credit units known as ACCU was formed a decade ago.

The system gives companies a financial incentive to offset carbon emissions i.e. one credit equals one ton of unemitted carbon.

Companies can buy credits, allowing them to emit greenhouse gases.

Projects that offset green emissions can claim carbon credits through the Federal Government's $4.5 billion Emissions Reduction Fund.

The success of the scheme is seen as crucial for Australia to reach net-zero by 2050.

Jennifer Rayner of the Climate Council welcomed the report's recommendations but said carbon reimbursement could not replace actual emissions reductions.

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