Former chief scientist Ian Chubb will lead a sweeping independent review of Australia's carbon credits system amid serious concern about its integrity.
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Climate Change and Energy Minister Chris Bowen announced the six-month probe on Friday, delivering on Labor's promise to examine the scheme if it won government.
The system was established under Tony Abbott in 2014, providing credits to projects that reduced greenhouse gas emissions under approved methods.
The carbon crediting regime has been at the centre of a political storm in recent months after a former insider went public with allegations that it was an "environmental and taxpayer fraud".
Australian National University professor Andrew Macintosh, a former chair of the government committee which oversees the integrity of the system, claimed that up to 80 per cent of carbon credits issued to projects using the three main types of methods were "devoid of integrity" and didn't result in actual carbon abatement.
The Clean Energy Regulator defended itself at the time, but agreed to review the allegations published in a series of papers from Professor Macintosh and his colleagues.
The regulator's review, published early last month, found the claims were "not substantiated" and there were "serious deficiencies" in the analysis.
But Professor Macintosh stood by his claims and Labor, now in government, has committed to pressing ahead with an independent review.
Professor Chubb, a former Australian National University vice-chancellor, will lead a panel of four experts. The panel will provide its report and recommendations to the government before the end of December.
The panel will examine concerns around the methods that can be used to generate credits, including carbon, capture and storage, which was added to the list under controversial circumstances.
Professor Macintosh and his colleagues are most concerned about the three main type of methods: human-induced regeneration, avoided deforestation and landfill gas.
The experts have cited examples of credits being issued for projects that involved protecting forests that were never going to be cleared, or growing trees that were already there.
The governance arrangements of the scheme will also be probed amid conflict of interest concerns.
Speaking at the National Press Club earlier this week, Mr Bowen said Professor Macintosh's concerns were "substantial" and should be taken seriously.
"I do want integrity. I want confidence in the system. I want the Australian people to have confidence in the system," he said.
"Unless and until we have that review that will be lacking because these serious concerns have been raised."
Progressive thinktank the Australian Institute has been among the leading voices calling for an independent probe of the scheme, arguing it was undermined by poor regulation and the influence of industry.
Richie Merzian, the institute's climate and energy program director, welcomed the review and the appointment of Professor Chubb.
"Integrity must sit at the heart of Australia's climate policies. The review is welcome and critical to ensure any climate target legislated by the Australian Parliament is met credibly," he said.
"Carbon credits with integrity can play a role in Australia's net zero future, but dodgy credits that are not additional or real abatement are effectively a licence to pollute and are only further fuelling climate change.
Dan Jervis-Bardy
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
Dan covers federal politics from Parliament House, with a special focus on climate policy and the NDIS. He has previously reported on ACT politics and urban affairs since joining the Canberra Times in 2018.
