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Aetium Faces Probe Over "Junk" Carbon Credits
18 Jan
Summary
- Campaigners accuse Aetium of misleading customers with potentially invalid carbon credits.
- The core issue is Aetium's alleged failure to meet the crucial "additionality" standard.
- Experts question the environmental integrity of Aetium's carbon offset scheme.
A new Australian company, Aetium, is facing scrutiny from climate campaigners and the corporate watchdog over its carbon offset scheme. Climate Integrity has lodged a complaint with the Australian Competition and Consumer Commission (ACCC), alleging that Aetium's offering of carbon credits for solar panels and electric vehicles is misleading. Campaigners have labelled the scheme as "junk," primarily because it allegedly fails to meet the critical "additionality" standard.
This "additionality" safeguard is fundamental to carbon offset schemes, ensuring that emissions reductions would not have occurred without the financial incentive of the credits. Critics argue that consumers would have installed solar panels or purchased EVs regardless of Aetium's existence, thus failing this test. Aetium defends its model, stating it aims to challenge existing reward systems for emissions cuts and redefining "additionality" to mean that the CO2 reduction would not have occurred if the registered item did not exist.
Experts, including Professor Andrew Macintosh, have voiced strong concerns, calling Aetium's approach divergent from global norms and potentially undermining climate action efforts. While Aetium claims no credits have been issued or revenue generated yet, pending a 12-month certification period, the ACCC has confirmed receipt of the complaint. The company's memberships in industry bodies and its adherence to a code of conduct are noted, though these do not guarantee the technical quality of its carbon credits.
