A new Australian company offering carbon credits for solar panels and electric vehicles is facing allegations it is misleading customers and selling worthless 'junk' offsets.
Core Principle 'Jettisoned' in Carbon Credit Scheme
The not-for-profit group Climate Integrity has lodged a formal complaint with the Australian Competition and Consumer Commission (ACCC), calling for an investigation into Aetium. The company invites consumers and organisations to register existing rooftop solar installations, EVs, and forests in return for carbon credits.
Experts have condemned the scheme for abandoning the foundational principle of 'additionality'. This critical global standard tests whether the emissions reduction activity—like installing solar panels—would have happened anyway without the financial incentive of the carbon credit.
"Aetium's credits fail to meet an additionality test because consumers signing up to the scheme would have bought and used their EVs or solar panels whether Aetium existed or not," said Claire Snyder, Executive Director of Climate Integrity.
Scheme Diverges from Global Standards
According to Aetium's own project registry, more than 4,000 projects have been registered since February last year. These include over 150 projects from the Cassowary Coast regional council in Queensland and more than 30 electric vehicles owned by the international rental firm Europcar.
Professor Andrew Macintosh, a leading environmental law expert at the Australian National University and former head of the government's emissions reduction assurance committee, was scathing in his assessment. "Of all the registries I have reviewed globally, Aetium stands out as one of the most divergent from accepted practice," he said.
He accused Aetium of redefining additionality to issue credits for standard activities, where the emissions reductions have nothing to do with the scheme's incentive. He also raised concerns over a lack of third-party verification and transparency.
Company Defends Its 'Challenge' to the System
In response to the allegations, Aetium's managing director, Christopher Ride, defended the company's approach. "We believe the current system should be challenged, and genuine change is needed. We need divergence from the accepted practices," he told the Guardian.
Ride stated that to date, no credits have been certified, sold, or retired, and no fees have been taken, due to a mandatory 12-month certification period. He said the company aimed to reward broad participation in cutting emissions.
The ACCC confirmed it had received the complaint. Meanwhile, industry bodies linked to Aetium sought to distance themselves from the scheme's integrity. The Carbon Market Institute, of which Aetium is a member, stated its code of conduct "does not regulate or assess the technical quality of carbon credits."
A Cassowary Coast council spokesperson said their registration was a trial, and any credits would be reinvested in similar projects. The Guardian sought comment from Europcar.
