National Carbon Offset Standard
The Australian Government introduced the National Carbon Offset Standard (NCOS) on 1 July 2010 to provide national consistency and consumer confidence in the voluntary carbon market. The standard serves two primary functions – it provides guidance on what is a genuine voluntary offset and sets minimum requirements for calculating, auditing and offsetting the carbon footprint of an organisation or product to achieve ‘carbon neutrality’.
NCOS review
The Parliamentary Secretary, the Hon Mark Dreyfus QC MP, has released for public comment a discussion paper on the National Carbon Offset Standard (NCOS) and a draft revised version of the NCOS.
What are ‘carbon offsets’?
Carbon offsets represent abatement of greenhouse gases which is achieved by:
- Reducing or avoiding emissions, for example, through capture and destruction of methane emissions from landfill or livestock manure; or
- Removing carbon from the atmosphere and storing it in soil or trees, for example, by growing a forest or reducing tillage on a farm in a way that increases soil carbon.
They are usually purchased and used by individuals or companies to cancel out or ‘offset’ the emissions they generate during their day-to-day life or normal course of business, for example, by consuming electricity or catching a plane.
Carbon offsets can be used to offset emissions voluntarily or to meet regulatory requirements.
How the NCOS works
The NCOS provides a means of ensuring the environmental integrity of the carbon offsets and carbon neutral products available in the Australian voluntary market for consumers and businesses alike. It assists consumers to make informed choices and interpret carbon neutral claims. It also helps businesses to determine their carbon footprint in line with consumer expectations and ensures they purchase robust offsets.
Organisations seeking to voluntarily offset their emissions or achieve carbon neutrality under the NCOS are able to purchase from a range of eligible offset units.
These include international units issued under the Kyoto Protocol as well as the voluntary market standards, the Gold Standard and Verified Carbon Standard (VCS). Domestic offsets generated from emissions sources not recognised towards Australia’s Kyoto Protocol target are also eligible under the NCOS. Credits may be derived from eligible offsets projects under the Carbon Farming Initiative or projects using the Gold Standard and Verified Carbon Standard where these methodologies have been approved under the NCOS. For example the VCS methodology VM0010: Methodology for Improved Forest Management: Conversion of Logged to Protected Forests has been approved for use under the NCOS.
Under the NCOS Carbon Neutral Program, administered by Low Carbon Australia, Australian organisations or products can be certified as carbon neutral, meaning that their net associated emissions are equal to zero. Consumers can have confidence that organisations or products bearing the NCOS trademark have achieved carbon neutrality in a way that achieves genuine emissions reductions.
The NCOS is a ‘living’ document that will be regularly reviewed and updated to reflect the dynamic nature of the voluntary carbon market and provide ongoing opportunities for Australian businesses.