Why the carbon offset 'swear jar' needs an overhaul
Carbon offsets seemed like an environmentally savvy investment for food packaging firm BioPak when the company invested in a solar power project in Southeast Asia.
But over more than a decade, the project's price rose, its transparency fell and Gary Smith's firm started to question whether it was the best way to cut emissions.
"My best description of carbon credits became a swear jar: I'm gonna do bad but I'll pay for it and then I'm all good, I can carry on," the BioPak chief executive told AAP.
"You should be taking your funds and actively watching each dollar to see that it has an impact, in our opinion, and that's what we've done in our business."
Rather than investing one per cent of the company's profits in carbon offsets, Mr Smith said it now spent money on ways to directly cut emissions from manufacturing, divert waste and educate consumers about composting.
"We helped our partners rebuild a factory over the last 18 months and our energy use is 40 per cent of what it was - and that's a real impact," he said.
"When I spent money on carbon credits, I had no measure to tell you that money resulted in carbon dropping from X to Y."
The switch comes as more Australian companies scrutinise their investments in carbon offsets and whether it is legally sound to use them to claim their operations are carbon neutral.
The re-think has been spurred on by power giant EnergyAustralia's apology to more than 400,000 customers as part of a legal settlement over alleged "greenwashing".
But while the use, marketing and quality of carbon offsets is under scrutiny, some experts say there could still be a use for the system if there is significant reform.
Carbon offsets are investments in environmentally friendly projects, such as renewable energy, revegetation or land care, that businesses can use to reduce their carbon footprints.
Environmental group Parents for Climate triggered the latest wave of carbon offset soul-searching after reaching a settlement from its 2023 lawsuit against EnergyAustralia.
Australia's third largest energy firm apologised to customers who felt misled by its carbon-neutral claims, clarifying that "offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use".
The admission could be a game-changer for other high-polluting companies, the environmental charity's chief executive Nic Seton said, as it recognised carbon offsets did not undo emissions and should only be used as a last resort.
"Not being able to make compensatory claims means companies are going to shift," he said.
"There are a lot of companies out there making similar claims and we're very alive to that and we're going to be writing to all of them because we want to make sure they do it quickly."
Green group Climate Integrity is also raising questions, sending a "letter of concern" to Red Energy to ask it to reconsider its "carbon neutral gas" product.
The group set a Tuesday deadline for a response to its concerns, director Claire Snyder said, and will consider whether to take the company to court.
"What action we take will be dependent on that response," she said.
"We're really hopeful that they'll see the writing on the wall from the Parents for Climate case and reconsider using carbon neutral (as a) marketing term."
Climate Integrity has also lodged a complaint with the Australian Competition and Consumer Commission about Qantas's "fly carbon neutral" offering that relies on carbon offsets.
A Red Energy spokesman said the company was aware of the debate about the use of offsets and it would aim to meet customer needs.
Qantas was committed to helping people compensate for some of the emissions associated with their flights by supporting projects outside the aviation sector, a spokesperson said.
The companies might be some of many considering how they use and market carbon offsets after the legal precedent, Environmental Defenders Office lawyer Kirsty Ruddock said.
While complaints and challenges about the use of carbon offsets were not new, the legal outcome demonstrated the stakes, which could be raised if class action lawsuits followed, she added.
"It highlights the risk that lawyers have been talking about for some time ... about whether or not you need to be cutting to the chase and doing what the science says and reducing your emissions first, before you look at offsets," Ms Ruddock said.
"Offsets do still have a role to play, but at the moment it's a bit of a work in progress because of all the issues that have been raised or found."
The federal government program that sets carbon neutral standards and certifies products and companies, Climate Active, has come under criticism from many sources who have accused the organisation of sanctioning greenwashing.
The organisation has attracted attention for certifying fossil fuel companies as carbon neutral due to their purchases of offsets.
Former ACCC boss Allan Fels has called for its practices to be independently investigated, while more than 100 businesses have resigned as members of the scheme over the past 18 months, including Telstra, NRMA and Australia Post.
A review of the program was launched in late 2023 but changes are yet to be announced, which Carbon Market Institute chief executive John Connor said was disappointing.
EnergyAustralia's admission was "the nail in the coffin for the first phase" of carbon offsets, he said.
But with changes to the way they were rated, governed and used, they could still be a valuable tool to help businesses reach net zero in a second phase.
"Some people are saying we should kill Climate Active but there are perverse consequences if we do that," Mr Connor said.
"We shouldn't be making those sorts of claims and we shouldn't just be focusing on neutrality, we should be making sure (businesses use) fair-dinkum decarbonisation plans."
Carbon offsets seemed like an environmentally savvy investment for food packaging firm BioPak when the company invested in a solar power project in Southeast Asia.
But over more than a decade, the project's price rose, its transparency fell and Gary Smith's firm started to question whether it was the best way to cut emissions.
"My best description of carbon credits became a swear jar: I'm gonna do bad but I'll pay for it and then I'm all good, I can carry on," the BioPak chief executive told AAP.
"You should be taking your funds and actively watching each dollar to see that it has an impact, in our opinion, and that's what we've done in our business."
Rather than investing one per cent of the company's profits in carbon offsets, Mr Smith said it now spent money on ways to directly cut emissions from manufacturing, divert waste and educate consumers about composting.
"We helped our partners rebuild a factory over the last 18 months and our energy use is 40 per cent of what it was - and that's a real impact," he said.
"When I spent money on carbon credits, I had no measure to tell you that money resulted in carbon dropping from X to Y."
The switch comes as more Australian companies scrutinise their investments in carbon offsets and whether it is legally sound to use them to claim their operations are carbon neutral.
The re-think has been spurred on by power giant EnergyAustralia's apology to more than 400,000 customers as part of a legal settlement over alleged "greenwashing".
But while the use, marketing and quality of carbon offsets is under scrutiny, some experts say there could still be a use for the system if there is significant reform.
Carbon offsets are investments in environmentally friendly projects, such as renewable energy, revegetation or land care, that businesses can use to reduce their carbon footprints.
Environmental group Parents for Climate triggered the latest wave of carbon offset soul-searching after reaching a settlement from its 2023 lawsuit against EnergyAustralia.
Australia's third largest energy firm apologised to customers who felt misled by its carbon-neutral claims, clarifying that "offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use".
The admission could be a game-changer for other high-polluting companies, the environmental charity's chief executive Nic Seton said, as it recognised carbon offsets did not undo emissions and should only be used as a last resort.
"Not being able to make compensatory claims means companies are going to shift," he said.
"There are a lot of companies out there making similar claims and we're very alive to that and we're going to be writing to all of them because we want to make sure they do it quickly."
Green group Climate Integrity is also raising questions, sending a "letter of concern" to Red Energy to ask it to reconsider its "carbon neutral gas" product.
The group set a Tuesday deadline for a response to its concerns, director Claire Snyder said, and will consider whether to take the company to court.
"What action we take will be dependent on that response," she said.
"We're really hopeful that they'll see the writing on the wall from the Parents for Climate case and reconsider using carbon neutral (as a) marketing term."
Climate Integrity has also lodged a complaint with the Australian Competition and Consumer Commission about Qantas's "fly carbon neutral" offering that relies on carbon offsets.
A Red Energy spokesman said the company was aware of the debate about the use of offsets and it would aim to meet customer needs.
Qantas was committed to helping people compensate for some of the emissions associated with their flights by supporting projects outside the aviation sector, a spokesperson said.
The companies might be some of many considering how they use and market carbon offsets after the legal precedent, Environmental Defenders Office lawyer Kirsty Ruddock said.
While complaints and challenges about the use of carbon offsets were not new, the legal outcome demonstrated the stakes, which could be raised if class action lawsuits followed, she added.
"It highlights the risk that lawyers have been talking about for some time ... about whether or not you need to be cutting to the chase and doing what the science says and reducing your emissions first, before you look at offsets," Ms Ruddock said.
"Offsets do still have a role to play, but at the moment it's a bit of a work in progress because of all the issues that have been raised or found."
The federal government program that sets carbon neutral standards and certifies products and companies, Climate Active, has come under criticism from many sources who have accused the organisation of sanctioning greenwashing.
The organisation has attracted attention for certifying fossil fuel companies as carbon neutral due to their purchases of offsets.
Former ACCC boss Allan Fels has called for its practices to be independently investigated, while more than 100 businesses have resigned as members of the scheme over the past 18 months, including Telstra, NRMA and Australia Post.
A review of the program was launched in late 2023 but changes are yet to be announced, which Carbon Market Institute chief executive John Connor said was disappointing.
EnergyAustralia's admission was "the nail in the coffin for the first phase" of carbon offsets, he said.
But with changes to the way they were rated, governed and used, they could still be a valuable tool to help businesses reach net zero in a second phase.
"Some people are saying we should kill Climate Active but there are perverse consequences if we do that," Mr Connor said.
"We shouldn't be making those sorts of claims and we shouldn't just be focusing on neutrality, we should be making sure (businesses use) fair-dinkum decarbonisation plans."
Carbon offsets seemed like an environmentally savvy investment for food packaging firm BioPak when the company invested in a solar power project in Southeast Asia.
But over more than a decade, the project's price rose, its transparency fell and Gary Smith's firm started to question whether it was the best way to cut emissions.
"My best description of carbon credits became a swear jar: I'm gonna do bad but I'll pay for it and then I'm all good, I can carry on," the BioPak chief executive told AAP.
"You should be taking your funds and actively watching each dollar to see that it has an impact, in our opinion, and that's what we've done in our business."
Rather than investing one per cent of the company's profits in carbon offsets, Mr Smith said it now spent money on ways to directly cut emissions from manufacturing, divert waste and educate consumers about composting.
"We helped our partners rebuild a factory over the last 18 months and our energy use is 40 per cent of what it was - and that's a real impact," he said.
"When I spent money on carbon credits, I had no measure to tell you that money resulted in carbon dropping from X to Y."
The switch comes as more Australian companies scrutinise their investments in carbon offsets and whether it is legally sound to use them to claim their operations are carbon neutral.
The re-think has been spurred on by power giant EnergyAustralia's apology to more than 400,000 customers as part of a legal settlement over alleged "greenwashing".
But while the use, marketing and quality of carbon offsets is under scrutiny, some experts say there could still be a use for the system if there is significant reform.
Carbon offsets are investments in environmentally friendly projects, such as renewable energy, revegetation or land care, that businesses can use to reduce their carbon footprints.
Environmental group Parents for Climate triggered the latest wave of carbon offset soul-searching after reaching a settlement from its 2023 lawsuit against EnergyAustralia.
Australia's third largest energy firm apologised to customers who felt misled by its carbon-neutral claims, clarifying that "offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use".
The admission could be a game-changer for other high-polluting companies, the environmental charity's chief executive Nic Seton said, as it recognised carbon offsets did not undo emissions and should only be used as a last resort.
"Not being able to make compensatory claims means companies are going to shift," he said.
"There are a lot of companies out there making similar claims and we're very alive to that and we're going to be writing to all of them because we want to make sure they do it quickly."
Green group Climate Integrity is also raising questions, sending a "letter of concern" to Red Energy to ask it to reconsider its "carbon neutral gas" product.
The group set a Tuesday deadline for a response to its concerns, director Claire Snyder said, and will consider whether to take the company to court.
"What action we take will be dependent on that response," she said.
"We're really hopeful that they'll see the writing on the wall from the Parents for Climate case and reconsider using carbon neutral (as a) marketing term."
Climate Integrity has also lodged a complaint with the Australian Competition and Consumer Commission about Qantas's "fly carbon neutral" offering that relies on carbon offsets.
A Red Energy spokesman said the company was aware of the debate about the use of offsets and it would aim to meet customer needs.
Qantas was committed to helping people compensate for some of the emissions associated with their flights by supporting projects outside the aviation sector, a spokesperson said.
The companies might be some of many considering how they use and market carbon offsets after the legal precedent, Environmental Defenders Office lawyer Kirsty Ruddock said.
While complaints and challenges about the use of carbon offsets were not new, the legal outcome demonstrated the stakes, which could be raised if class action lawsuits followed, she added.
"It highlights the risk that lawyers have been talking about for some time ... about whether or not you need to be cutting to the chase and doing what the science says and reducing your emissions first, before you look at offsets," Ms Ruddock said.
"Offsets do still have a role to play, but at the moment it's a bit of a work in progress because of all the issues that have been raised or found."
The federal government program that sets carbon neutral standards and certifies products and companies, Climate Active, has come under criticism from many sources who have accused the organisation of sanctioning greenwashing.
The organisation has attracted attention for certifying fossil fuel companies as carbon neutral due to their purchases of offsets.
Former ACCC boss Allan Fels has called for its practices to be independently investigated, while more than 100 businesses have resigned as members of the scheme over the past 18 months, including Telstra, NRMA and Australia Post.
A review of the program was launched in late 2023 but changes are yet to be announced, which Carbon Market Institute chief executive John Connor said was disappointing.
EnergyAustralia's admission was "the nail in the coffin for the first phase" of carbon offsets, he said.
But with changes to the way they were rated, governed and used, they could still be a valuable tool to help businesses reach net zero in a second phase.
"Some people are saying we should kill Climate Active but there are perverse consequences if we do that," Mr Connor said.
"We shouldn't be making those sorts of claims and we shouldn't just be focusing on neutrality, we should be making sure (businesses use) fair-dinkum decarbonisation plans."
Carbon offsets seemed like an environmentally savvy investment for food packaging firm BioPak when the company invested in a solar power project in Southeast Asia.
But over more than a decade, the project's price rose, its transparency fell and Gary Smith's firm started to question whether it was the best way to cut emissions.
"My best description of carbon credits became a swear jar: I'm gonna do bad but I'll pay for it and then I'm all good, I can carry on," the BioPak chief executive told AAP.
"You should be taking your funds and actively watching each dollar to see that it has an impact, in our opinion, and that's what we've done in our business."
Rather than investing one per cent of the company's profits in carbon offsets, Mr Smith said it now spent money on ways to directly cut emissions from manufacturing, divert waste and educate consumers about composting.
"We helped our partners rebuild a factory over the last 18 months and our energy use is 40 per cent of what it was - and that's a real impact," he said.
"When I spent money on carbon credits, I had no measure to tell you that money resulted in carbon dropping from X to Y."
The switch comes as more Australian companies scrutinise their investments in carbon offsets and whether it is legally sound to use them to claim their operations are carbon neutral.
The re-think has been spurred on by power giant EnergyAustralia's apology to more than 400,000 customers as part of a legal settlement over alleged "greenwashing".
But while the use, marketing and quality of carbon offsets is under scrutiny, some experts say there could still be a use for the system if there is significant reform.
Carbon offsets are investments in environmentally friendly projects, such as renewable energy, revegetation or land care, that businesses can use to reduce their carbon footprints.
Environmental group Parents for Climate triggered the latest wave of carbon offset soul-searching after reaching a settlement from its 2023 lawsuit against EnergyAustralia.
Australia's third largest energy firm apologised to customers who felt misled by its carbon-neutral claims, clarifying that "offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use".
The admission could be a game-changer for other high-polluting companies, the environmental charity's chief executive Nic Seton said, as it recognised carbon offsets did not undo emissions and should only be used as a last resort.
"Not being able to make compensatory claims means companies are going to shift," he said.
"There are a lot of companies out there making similar claims and we're very alive to that and we're going to be writing to all of them because we want to make sure they do it quickly."
Green group Climate Integrity is also raising questions, sending a "letter of concern" to Red Energy to ask it to reconsider its "carbon neutral gas" product.
The group set a Tuesday deadline for a response to its concerns, director Claire Snyder said, and will consider whether to take the company to court.
"What action we take will be dependent on that response," she said.
"We're really hopeful that they'll see the writing on the wall from the Parents for Climate case and reconsider using carbon neutral (as a) marketing term."
Climate Integrity has also lodged a complaint with the Australian Competition and Consumer Commission about Qantas's "fly carbon neutral" offering that relies on carbon offsets.
A Red Energy spokesman said the company was aware of the debate about the use of offsets and it would aim to meet customer needs.
Qantas was committed to helping people compensate for some of the emissions associated with their flights by supporting projects outside the aviation sector, a spokesperson said.
The companies might be some of many considering how they use and market carbon offsets after the legal precedent, Environmental Defenders Office lawyer Kirsty Ruddock said.
While complaints and challenges about the use of carbon offsets were not new, the legal outcome demonstrated the stakes, which could be raised if class action lawsuits followed, she added.
"It highlights the risk that lawyers have been talking about for some time ... about whether or not you need to be cutting to the chase and doing what the science says and reducing your emissions first, before you look at offsets," Ms Ruddock said.
"Offsets do still have a role to play, but at the moment it's a bit of a work in progress because of all the issues that have been raised or found."
The federal government program that sets carbon neutral standards and certifies products and companies, Climate Active, has come under criticism from many sources who have accused the organisation of sanctioning greenwashing.
The organisation has attracted attention for certifying fossil fuel companies as carbon neutral due to their purchases of offsets.
Former ACCC boss Allan Fels has called for its practices to be independently investigated, while more than 100 businesses have resigned as members of the scheme over the past 18 months, including Telstra, NRMA and Australia Post.
A review of the program was launched in late 2023 but changes are yet to be announced, which Carbon Market Institute chief executive John Connor said was disappointing.
EnergyAustralia's admission was "the nail in the coffin for the first phase" of carbon offsets, he said.
But with changes to the way they were rated, governed and used, they could still be a valuable tool to help businesses reach net zero in a second phase.
"Some people are saying we should kill Climate Active but there are perverse consequences if we do that," Mr Connor said.
"We shouldn't be making those sorts of claims and we shouldn't just be focusing on neutrality, we should be making sure (businesses use) fair-dinkum decarbonisation plans."
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"Mal is an Immortal of the NRL, he is also an Immortal of our national sporting landscape, Mal is part of the Australian identity and we're honoured he's taken this opportunity," said club chief executive Anthony De Ceglie. "We've gone from one Bear in me, to two Bears in Mal, we've doubled our staff overnight. "It's small steps, we need to listen to the legacy of the North Sydney Bears and the fans in WA who have a proud tradition and who have kept the candle burning and we need to marry those two things together to make this a huge success." A former high-ranking executive at Seven West Media - the company which owns the AFL broadcast rights - De Ceglie knows the NRL's 18th side has work to do. Already the local Seven West-owned newspaper The West Australian has been critical of the venture which has been backed by WA State government cash. "Normally if you're doing something right, you have a few critics along the way," De Ceglie said. "I've been totally blown away by the amount of messages of people who want to get involved in the Perth Bears … I'm very optimistic this will be a huge success. "It'll be up to the Perth Bears to earn the respect of the newspaper. "If we're a success on the field, and if we're a success off the field, then we should be in those sports pages. "If we're not, the only people missing out are the readers of the newspaper." Meninga is yet to finalise his coaching staff nor a recruitment team who can help him bring the Perth roster together with a relatively short lead-in time. When the Redcliffe-based Dolphins entered the NRL in 2023 they missed out on several big-name targets in the recruitment space. But their squad - which won nine of their 24 games in their inaugural season - earned the respect of rival clubs for their effort and determination. "I don't think we'll have too many worries about talking to players and managers about the opportunity to come play in Perth," Meninga said. "We've got a story to tell. We have to understand what we're trying to achieve and that's my job initially to get the right people and resources around us to help understand what that story is." After unveiling Mal Meninga as the Perth Bears' inaugural head coach, the club's chief executive says criticism of the NRL's start-up franchise is proof they are on the right track to winning new supporters in the AFL-made West. At a press conference at League Central in Sydney on Friday, Meninga signed a three-year contract with the Bears, who will enter the NRL in 2027. It marks the 64-year-old's first foray into club coaching since he left the Canberra Raiders in 2001. Meninga will be 69 by the time his contract expires. The Immortal, who has enjoyed a decorated representative coaching career in charge of Queensland and Australia, will relinquish his role with the Kangaroos ahead of this year's Ashes series to help the Bears build a roster to be competitive in a little over 18 months time. "This is bigger than me," Meninga said. "This new pioneering venture over to WA and the opportunity to be involved in the growth of the game, to grow a club the Perth Bears is too good to refuse. "I feel very honoured, very nervous, and I think it's a huge responsibility." The Bears can talk to off-contract players come November 1, but their hardest challenge may be winning over fans, sponsors and a media who are already heavily invested in the AFL. "Mal is an Immortal of the NRL, he is also an Immortal of our national sporting landscape, Mal is part of the Australian identity and we're honoured he's taken this opportunity," said club chief executive Anthony De Ceglie. "We've gone from one Bear in me, to two Bears in Mal, we've doubled our staff overnight. "It's small steps, we need to listen to the legacy of the North Sydney Bears and the fans in WA who have a proud tradition and who have kept the candle burning and we need to marry those two things together to make this a huge success." A former high-ranking executive at Seven West Media - the company which owns the AFL broadcast rights - De Ceglie knows the NRL's 18th side has work to do. Already the local Seven West-owned newspaper The West Australian has been critical of the venture which has been backed by WA State government cash. "Normally if you're doing something right, you have a few critics along the way," De Ceglie said. "I've been totally blown away by the amount of messages of people who want to get involved in the Perth Bears … I'm very optimistic this will be a huge success. "It'll be up to the Perth Bears to earn the respect of the newspaper. "If we're a success on the field, and if we're a success off the field, then we should be in those sports pages. "If we're not, the only people missing out are the readers of the newspaper." Meninga is yet to finalise his coaching staff nor a recruitment team who can help him bring the Perth roster together with a relatively short lead-in time. When the Redcliffe-based Dolphins entered the NRL in 2023 they missed out on several big-name targets in the recruitment space. But their squad - which won nine of their 24 games in their inaugural season - earned the respect of rival clubs for their effort and determination. "I don't think we'll have too many worries about talking to players and managers about the opportunity to come play in Perth," Meninga said. "We've got a story to tell. We have to understand what we're trying to achieve and that's my job initially to get the right people and resources around us to help understand what that story is."
