An Australian carbon offset company, Aetium, has faced accusations of potentially misleading customers by offering to generate carbon credits for their solar panels and electric vehicles. Climate campaigners have characterized the scheme as 'junk'.
The not-for-profit group Climate Integrity has formally requested the Australian Competition and Consumer Commission (ACCC) investigate Aetium. The company invites consumers and organizations to register their rooftop solar, electric vehicles, and forests to receive carbon credits.
Experts have indicated that Aetium's online scheme may deviate from a core principle in carbon offsets known as 'additionality'. This principle stipulates that projects should only generate credits if the emissions reductions would not have occurred without the financial incentive provided by the scheme. Climate Integrity alleges that Aetium's credits do not meet this standard, arguing that consumers would likely have purchased and used their EVs or solar panels irrespective of Aetium's existence. Aetium's definition of additionality, as stated on its website, asserts that a CO2 reduction would not have occurred if the solar system, EV, or forestry did not exist, a definition which Climate Integrity stated is 'out of step with virtually all established carbon credit schemes'.
Since February last year, more than 4,000 projects have been registered with Aetium. These include over 150 projects from the Cassowary Coast regional council in Queensland and more than 30 electric vehicles owned by the Europcar rental service.
Aetium has defended its scheme, stating its objective is to challenge the existing system that rewards individuals and organizations for actions taken to reduce emissions. The company's managing director, Christopher Ride, clarified that, to date, 'no 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' due to a mandated minimum 12-month certification period for projects. Ride also stated the company had not been made aware of any formal complaint to the ACCC, although the ACCC confirmed receiving one.
Professor Andrew Macintosh, an environmental law professor at the Australian National University, stated that Aetium's scheme 'stands out as one of the most divergent from accepted practice' among global registries, specifically citing issues with the concept of additionality, third-party verification processes, and transparency. Ride responded by stating, 'We believe the current system should be challenged, and genuine change is needed. We need divergence from the accepted practices.' He added that the company aims to encourage broader participation in emissions reduction efforts.