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Free Carbon Credits Seen Jeopardizing Australia’s Climate Target

  • Units may be issued to firms with below-average emissions
  • Credits must reflect real abatement to meet goals, report says

An Australian proposal to offer free carbon credits to some of its biggest emitters risks undermining government efforts to restore confidence in the nation’s climate policies, according to an analyst.

The country may miss its 2030 emissions target if credits don’t reflect real and additional abatements, according to RepuTex, a provider of data and analysis that helped model the goal. That adds to pressure to reform the system, which is under review following accusations that many policies don’t actually cut pollution.