News: Australian review finds no problem with carbon offset programme

MELBOURNE, Jan 9 (Reuters) - A six-month review of Australia's carbon offsets programme has found no problem with approved emissions abatement projects, but has called for a separation of regulatory roles and more funding to improve the system, according to a report released on Monday.

The Labor government last year appointed an independent leading scientist, Ian Chubb, to lead a panel set up to review the integrity of Australian Carbon Credit Units (ACCU) after allegations that some projects were earning credits without really adding to emissions abatement.

The validity of the carbon credits programme is essential as Australian companies are increasingly buying the credits to help them meet their own emissions reductions targets. The government on Monday said it accepted the panel's recommendations.

In the panel's report, Chubb said after hearing evidence on both sides, the independent panel did not find the level of emissions reductions claimed by some projects was overstated, and concluded the scheme was well-designed when introduced.

"Nevertheless, after 11 years of operation, the scheme can be improved," the panel said in its report released on Monday.

The recommendations focused on separating the main roles of assuring integrity of carbon credits, regulation and administration, improving data sharing, and protecting Indigenous people's interests.

It urged the government to quickly set up an independent carbon abatement integrity committee "with enhanced resourcing" to ensure carbon farming projects actually help the country meet its targets of a 43% reduction in emissions from 2005 levels by 2030, and net zero by 2050.

"There is no practical or cheap alternative," the report said.

The government welcomed the report in a statement from Climate Change and Energy Minister Chris Bowen.

"The panel's recommendations will help ensure Australia’s carbon crediting scheme has the highest integrity, and contributes to achieving Australia’s emission targets,” Bowen said.