CARBON CREDITS

As a signatory to the Kyoto Protocol, Australia now has an international commitment to achieving a national greenhouse gas emissions target of 599 Million tonnes CO₂e (108% of the 1990 level) in the first commitment period (2008 – 2012).

One mechanism which the Australian Government intends to use to help achieve this target is a market-based mechanism to put a price on carbon emissions for large emitters – a carbon trading scheme. Australia’s proposed carbon trading scheme was called the Carbon Pollution Reduction Scheme (CPRS). However, CPRS was recently postponed by the Rudd government until at least 2013, so there is uncertainty at the moment about which pathway Australia will take in the future to manage greenhouse gas emissions. At present there is no mandatory carbon price mechanism in Australia.

National Carbon Offset Standard (NCOS) – Voluntary Scheme

However, the Department of Climate Change and Energy Efficiency (DCCEE) recently introduced the National Carbon Offset Standard (NCOS) as a voluntary scheme for business and individuals who wish to do more to reduce greenhouse gas emissions. The NCOS scheme replaces the GreenHouse Friendly scheme (also run by the DCCEE) and is designed to complement the proposed CPRS.

NCOS is designed to ensure confidence and integrity in the voluntary carbon offset market for both carbon offsets and carbon neutral products. It also provides guidance to businesses who wish to make their organisation carbon neutral or develop carbon neutral products in a way that achieves emissions reductions, through the purchase and retirement of carbon offsets.

NCOS operates under best practice, whereby for an organisation or product to become carbon neutral, it is generally accepted that an organisation would:

Measure its carbon footprint;
Reduce emissions; and
Offset any residual emissions.

Best practice also requires that an organisation make transparent to the public steps taken to measure, reduce and offset emissions so that any carbon neutral claims can be objectively assessed. The transparency of the NCOS audit model is fundamental in providing confidence in offset projects and carbon neutral claims.

The NCOS logo will allow consumers to have confidence that organisations and products bearing the logo have achieved carbon neutrality in a way that achieves genuine emissions reductions.

Earth Systems is familiar with the NCOS scheme (under the old GreenHouse Friendly scheme) and can help businesses and individuals achieve carbon neutrality under this standard. Please contact us for more information about NCOS.

Carbon Credits Worldwide
Right now, many companies are generating carbon credits from renewable energy or demand-side energy efficiency projects through a variety of schemes operating around the world.

International Voluntary Carbon Standards (such as Gold Standard VERs and the Voluntary Carbon Standard), or Certified Emission Reductions (CERs) administered through the Kyoto Clean Development Mechanism (CDM), are two classes of carbon credit traded globally.

Since 2006, Earth Systems has helped clients realise their carbon credit potential by developing projects and facilitating the sale of over 700,000 carbon credits in international markets.

If you are interested in opportunities for generating and/or trading carbon credits through internationally recognised schemes, please contact Earth Systems.