Increasing numbers of Australian businesses adopting net zero carbon emission targets and seeking Climate Active certification will drive usage of Australian Carbon Credit Units (ACCUs), according to a new Commonwealth Bank of Australia (CBA) report ‘Climate Active – a 101’.
Climate Active is a partnership between the Australian government and Australian businesses to encourage voluntary action to reduce greenhouse gases. Certification is awarded to Australian entities or products that have credibly reached net zero emissions by changing production methods, using new technology and purchasing carbon credits like ACCUs.
The report is part of CBA’s Sustainable Economics research series and its author, Senior Economist Kristina Clifton, said offsetting emissions through carbon credits would be an important part of achieving carbon neutrality for many businesses.
“While climate reporting is not yet mandatory in Australia, we expect the quantity and quality of disclosures will improve over time. As more businesses seek to make net zero commitments and action them, we expect the number of Climate Active certifications will increase significantly as they enable consumers and investors to identify entities or goods and services that are carbon neutral.