A new Australian carbon offset company has been accused of potentially misleading customers by offering to generate thousands of credits for their solar panels and electric vehicles in a scheme that climate campaigners have labelled as junk.<\/p>\n
Not-for-profit group Climate Integrity has written to the corporate watchdog asking for an investigation into Aetium<\/a>, a company which is asking consumers and organisations to register their rooftop solar, EVs and forests in return for carbon credits.<\/p>\n One expert told Guardian Australia that Aetium\u2019s online scheme had \u201cjettisoned\u201d a core principle in the world of carbon offsets \u2013 that projects can only generate credits if they would not have happened without the financial incentive.<\/p>\n More than 4,000 projects have been registered with Aetium since February last year, including more than 150 by the Cassowary Coast regional council in Queensland and more than 30 EVs owned by the Europcar rental car service, according to the scheme\u2019s website.<\/p>\n The company defended its scheme and said it aimed to challenge the current system of how people and organisations could be rewarded for actions they had taken to cut emissions.<\/p>\n In its complaint<\/a> to the Australian Competition and Consumer Commission, climate advocacy organisation Climate Integrity alleges Aetium is misleading consumers about the carbon offset scheme\u2019s potential environmental benefits.<\/p>\n A key concern was the scheme allegedly failed the \u201cadditionality\u201d standard \u2013 a safeguard in carbon offset schemes that tests whether emissions reductions would have occurred without the scheme.<\/p>\n This aims to ensure credits bought represent additional emissions reductions, rather than business-as-usual activities.<\/p>\n \u201cAetium\u2019s credits fail to meet an additionality test because consumers signing up to the scheme would have bought and used their EVs or solar panels whether Aetium existed or not,\u201d Climate Integrity\u2019s executive director, Claire Snyder, said.<\/p>\n On its website, the company says that: \u201cAt Aetium, \u2018additionality\u2019 means the CO2 reduction would not have occurred if the solar system, EV or forestry did not exist\u201d.<\/p>\n Snyder said Aetium\u2019s definition was \u201cout of step with virtually all established carbon credit schemes and the evidence-backed view of climate scientists\u201d.<\/p>\n \u201cFailing to satisfy the additionality test runs the risk that consumers become misled about their contributions to reducing emissions, and could ultimately undermine efforts to tackle the climate crisis,\u201d she said.<\/p>\n \u2018Divergent\u2019 from accepted practice<\/p>\n Aetium says it is not currently generating money from the scheme. According to its website, it would make money through registration fees it plans to begin charging from 1 March and by collecting a 7% share of the carbon credits it issues.<\/p>\n According to Aetium\u2019s project registry, the Cassowary Coast regional council in far north Queensland has registered 131 forest projects and 23 solar PV installations, representing about 4,500 tonnes of CO2 credits, with the company.<\/p>\n It also shows more than 30 electric vehicles owned by the international rental car company Europcar are registered with Aetium.<\/p>\n Aetium\u2019s managing director, Christopher Ride, said that, to date, \u201cno carbon reductions have been certified by Aetium, no fees have been taken, no credits have been sold or retired, and no payments have been made\u201d due to a minimum 12-month certification period for projects that the company has set.<\/p>\n He said the company had not been made aware of any formal complaint to the ACCC. The ACCC confirmed to Guardian Australia it had received a complaint.<\/p>\n Sign up: AU Breaking News email<\/a><\/p>\n