Australia's main industrial emissions policy, the Safeguard Mechanism, is being hollowed out by cheap and questionable carbon offsets, according to a new analysis by Ketan Joshi at The Point. Government data shows that covered facilities, mostly fossil fuel companies, are relying heavily on offsets instead of cutting actual emissions. The worst offenders increased their use of controversial 'human-induced regeneration' offsets nearly three times between FY24 and FY25. The article breaks down the types of offsets flooding the scheme. 'Human-induced regeneration' credits, which pay landowners for letting vegetation regrow, have been criticized by researchers as likely non-additional meaning the regrowth would have happened anyway. Landfill gas capture offsets also face scrutiny since many facilities were already required to capture that methane under state laws. Avoided deforestation credits round out the top three, with studies finding most are likely junk. The core argument is that unlimited offsetting lets polluters claim compliance without reducing real emissions. The policy only works if it actually regulates pollution, and right now it does not. For anyone tracking carbon market integrity or Australian climate policy, this piece provides concrete data on how offset reliance is growing and which credits are the most problematic.
