Government strengthens Climate Active emissions cuts for business

The federal government is to strengthen its voluntary Climate Active programme under which companies including manufacturers could elect and be measured in taking action to reduce carbon emissions.

The government has opened consultation on reforms to help businesses measure, reduce, offset, and publicly report their emissions.

In force since 2010, the federal government said the Climate Active programme had not kept pace with community expectations of companies since then.

Climate Active has provided more than 700 certifications to over 540 businesses that have offset more than 38 million tonnes of carbon emissions.

Assistant Minister for Climate Change and Energy Jenny McAllister said: “Climate Active certification should be a trusted signal to Australian consumers that a business is taking credible climate action.

“Proposed changes will make it difficult for companies and organisations who are not genuinely committed to climate action to be certified under the Climate Active programme.

“We are sending a clear signal to the market that climate claims must be legitimate and that consumer trust must be maintained.”

The government is seeking submissions on proposed updates, including:

• Requiring gross emission reduction targets and demonstration that the participant is meeting them to stay certified
• Developing guidance to establish robust emission reduction boundaries and mandating measurement and reduction of specific indirect ‘scope 3’ emissions
• Tightening the use of offsets by imposing a rolling 5-year vintage requirement for international offsets
• And mandating a minimum proportion of renewable electricity consumption to support Australia’s renewable energy transition.

The government said reforming Climate Active to drive effective voluntary action was a further step in the reform of national climate policy.

McAllister said the government said the government wanted Climate Active to deliver more emissions reduction, more value to the businesses that participate, and more certainty to Australian consumers.

“Our proposed changes ask program participants to achieve genuine emissions reductions aligned to Australia’s emissions targets, use higher quality offsets, and commit to renewable electricity use.”

Picture: Senator Jenny McAllister