CARBON OFFSETTING – AUSTRALIA

Fortescue eyes $50m carbon free kick

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 8-Oct-24

The federal government has indicated that companies will be able to start trading its Safety Mechanism Credits from early 2025. The new carbon credit scheme will reward companies with one SMC for every extra tonne of carbon they cease emitting beyond their designated target. Given that Fortescue has a goal of achieving ‘real zero’ emissions across its iron ore mines by the end of this decade, it could be in line to earn about 1.4 million SMCs in 2030. Analysts suggest that Fortescue could gain additional revenue of between $50m and $150m by selling these credits to other emitters. However, chairman Andrew Forrest has been a vocal critic of carbon offsets in the past.

CORPORATES
FORTESCUE LIMITED – ASX FMG

Telstra ditches carbon offset scheme for direct action

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Original article by Cameron England
The Australian – Page: 13 & 16 : 14-Jun-24

Telstra is to abandon the federal government’s Climate Active carbon neutral labelling program in favour of direct action to cut emissions. The program sees companies, products, buildings and events paying an annual fee to call themselves carbon neutral with government support, although it was attacked by a Senate committee in April over claims it was being used to "greenwash" large companies by enabling them to claim carbon neutrality, with the Australian Competition and Consumer Commission refusing to endorse the program’s claims. Telstra says the telco’s decision to no longer be part of the program was not related to concerns about the program or carbon credits in general, but that its stakeholders had indicated they preferred a direct approach to emissions reduction.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Labor caps carbon price

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 5 : 11-Jan-23

Australia’s 215 biggest industrial polluters will be required to reduce their greenhouse gas emissions by an average of 4.9 per cent annually between 2023 and 2030, under the federal government’s changes to the safeguard mechanism. The changes take effect on 1 July, and will apply to sectors such as mining, oil and gas, manufacturing and transport. The government will cap the carbon price for heavy emitters at $75 per tonne, although it will rise in line with the inflation rate. The government will also provide $600m from the Powering the Regions Fund to assist trade-­exposed businesses and regions to ­invest in technologies that will lower their carbon emissions.

CORPORATES

Business split over carbon offsets

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Original article by Mark Ludlow
The Australian Financial Review – Page: 3 : 20-Jul-18

Energy Minister Josh Frydenberg is yet to decide whether international carbon offsets should be used as part of the National Energy Guarantee. Those opposing the idea include Labor and large energy users, while the Business Council of Australia is in favour of their use. Dow Chemical noted in its submission on the NEG that Europe’s experience in this area indicates that there is potential for abuse when international carbon offsets are utilised.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, DOW CHEMICAL AUSTRALIA LIMITED, CLEAN ENERGY COUNCIL LIMITED, GREENPEACE AUSTRALIA PACIFIC LIMITED, MINERALS COUNCIL OF AUSTRALIA, REPUTEX AUSTRALIA PACIFIC PTY LTD