Australia’s big polluters rely on carbon offsets for climate credibility. But the system looks like a house of cards | Adam Morton
News Source
•Fri, 18 Sep 2026 15:00:21 GMT
📰 What Happened
Columnist Adam Morton says Australia relies too much on carbon offsets. New data from the Clean Energy Regulator shows fossil fuel companies bought about two-thirds of the offsets sold last year. These credits are called Australian Carbon Credit Units.
Each credit is meant to stand for one tonne of greenhouse gas kept out of the air. Morton argues the system looks like a house of cards. He says carbon stored in nature is not the same as burning fossil fuels dug from the ground. Treating them as an even swap hides real pollution.
🔍 The Backstory
Most offsets come from projects that grow forests or capture methane from landfill. Power firms and industry can buy them to cancel out their emissions. A fight inside the Greens last week over koala protection put a spotlight on the issue.
Experts have long questioned whether some offset projects store the carbon they promise. Fires, drought and logging can release it again. If the credits fail, companies' climate claims fall apart. That would leave a large gap in Australia's plans to cut emissions.
🎯 Why It Matters
Offsets let big polluters claim they are acting on climate change. If those claims are wrong, real cuts in pollution may never happen.
Columnist Adam Morton says Australia relies too much on carbon offsets. New data from the Clean Energy Regulator shows fossil fuel companies bought about two-thirds of the offsets sold last year. These credits are called Australian Carbon Credit Units.
Each credit is meant to stand for one tonne of greenhouse gas kept out of the air. Morton argues the system looks like a house of cards. He says carbon stored in nature is not the same as burning fossil fuels dug from the ground. Treating them as an even swap hides real pollution.
Most offsets come from projects that grow forests or capture methane from landfill. Power firms and industry can buy them to cancel out their emissions. A fight inside the Greens last week over koala protection put a spotlight on the issue.
Experts have long questioned whether some offset projects store the carbon they promise. Fires, drought and logging can release it again. If the credits fail, companies' climate claims fall apart. That would leave a large gap in Australia's plans to cut emissions.
Offsets let big polluters claim they are acting on climate change. If those claims are wrong, real cuts in pollution may never happen.