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The Property Council of Australia (PCA) and the Green Building Council of Australia have agreed that the property industry should rethink how carbon offsets are used.
A new framework established by the two entities is advocating for a “last but not later” approach to carbon offsets: meaning that they should be the final line of defence in controlling emissions, yet not delayed if that’s the only option.
As PCA national policy director Francesca Muskovic explained: “Offsets should be used last in a hierarchy of measures to reduce emissions in the built environment, but they should be implemented without delays.”
She added that the councils have taken a stance of promoting the use of carbon offsets “where elimination of emissions is unavoidable”, and are emphasising that where carbon offsetting is used, attention needs to be given to sourcing high-integrity, high-quality nature-based solutions.
“Sourcing quality offsets isn’t always easy and it’s increasingly important for companies to demonstrate a coherent procurement strategy with appropriate due diligence that also sets out the role offsets play as part of a credible net zero plan,” Ms Muskovic said.
The Green Building Council of Australia’s chief impact officer, Jorge Chapa, added that offsetting should be viewed as something of a temporary strategy as Australia seeks to adapt and build greener buildings.
“As Australian property companies continue the transition towards net zero, offsets can compensate for residual emissions until we reach a point where we can eliminate them completely,” Mr Chapa said.
With so-called “greenwashing” coming under fire from ASIC earlier in the year, the councils stress that carbon offsetting is an industry in which property professionals need to do their due diligence.
Carbon offsetting has a wide take-up by those across the property sector looking to ensure their buildings and businesses are operating ethically. But more recently the practice has begun to wane, while the industry has struggled to ensure strict controls in the face of rapid growth.
“The carbon offset market is fraught with complexity and can be difficult to navigate. This framework will facilitate informed decision-making, while helping real estate owners to create long-term value for their properties and communities,” Mr Chapa said.
“Applying the framework principles will ensure organisations in the property sector are equipped with the tools to reliably underpin credible, high-integrity net zero claims.
The framework is largely based on the Oxford Principles for Net Zero Aligned Carbon Offsetting, while the councils also rely on technical specialists to consult on aspects to ensure it is fit for purpose.
The duo assured the sector that “it has been designed to reflect the unique nature of Australian property, energy and emissions markets, as well as the environments in which they operate”.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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