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The Chubb Review into Australia’s scandal-plagued carbon offsets system might not provide the reset needed for the carbon market given the potential conflicts of its members, its timing in relation to other climate reforms and by distracting from more effective emissions reduction policies, according to a submission by The Australia Institute.

Key findings:

Two of the Chubb Review panel’s four members are linked to companies that profit from current carbon offsetting arrangements and secretariat staff have been seconded from agencies responsible for many of the scandals to date.
Detailed policy proposals to reform the Safeguard Mechanism that will significantly increase demand for carbon credits will be developed and published before the Chubb Review is even finalised.
The Chubb Review fails to address the use of carbon credits to justify ongoing fossil fuel production and consumption and distracts from alternative climate policies that should be prioritized to reduce emissions.

“The Chubb Review is starting to look a lot like business-as-usual for climate policy in Australia,” said Polly Hemming, Senior Researcher at the Australia Institute.

“This review might not help reset Australia’s climate policy given the potential conflicts of the review panel members. Yet again, people with links to vested interests have been appointed to key positions on the review panel.

“Its disappointing the Safeguard Mechanism will be reformed without proper consideration of the integrity of the carbon offsets it will be relying upon.

“Australian policymakers are focused on our failed market system of offsetting. We should instead be talking about the big ticket items of decarbonisation – eliminating fossil fuel subsidies, stopping new fossil fuel projects and phasing out fossil fuel consumption.”