After years of back and forth and a lack of action, Australia is well on its way to a new comprehensive policy tackling climate change. Eddie Listorti, the founding partner and CEO of Viridios Group, says the new comprehensive policy the country is embarking on could definitely drive a meaningful reduction in emissions.
Recently, Australia announced the Chubb and the Safeguard Mechanism reviews, which should help to rebuild confidence in the country’s carbon market. Australian Carbon Credit Unit offsets, or ACCUs, along with those used as part of the Safeguard Mechanism, could reduce emissions by as much as one tonne permanently in the form of either sequestration or avoidance.
Yet, there’s more to be done, including making it easier for Australian companies to access the international voluntary carbon market.
A Market Primed for Explosive Growth
The international voluntary carbon market has seen rapid rates of adoption from the public and private sectors in recent years, and it’s able to address any issues as they happen.
International consulting firm McKinsey has estimated that demand for these markets will increase roughly 15 times by 2030. Combined with the compliance carbon markets, the two could soon become an industry worth USD 1 trillion.
Eddi Listorti, whose company Viridios Capital has vast experience in the international voluntary carbon market, knows that high-quality carbon credits can deliver projects with a lot of value. They have outcomes for carbon reduction that can be clearly measurable and provide other co-benefits that are aligned with the Sustainable Development Goals outlined by the United Nations.
Because of all of this, international voluntary carbon credits are trading at what is a premium price.
What Access to These Markets Will Do for Australia
Australia’s carbon prices often fly under the radar, but they are very diverse, ranging from the generic ACCUs to Victorian Energy Efficiency Certificates. The country also has prices for international Climate active credits that are available for any company that aims to become carbon-neutral.
The country has set ambitious carbon reduction targets for 2030, and in order to not miss the mark, the government will soon impose baselines for declining emissions on its largest emitters.
As such, Eddie Listorti and Viridios Capital believe that the industry could significantly benefit from having access to high-quality international carbon credits.
One of the biggest challenges of seeing new projects become a reality is that it takes a lot of time to do so. This is where having access to international credits could prove to be critical in ensuring Australia meets the targets set as part of the requirements for the Safeguard Mechanism.
The Australian government has already considered potentially allowing companies to access these international credits, though it’s not part of its initial reforms. Doing so would prove invaluable to companies in Australia, as well as the country’s residents as a whole.
Eddie Listorti said that the market in Australia could greatly benefit from absorbing the methodologies, pricing, expertise, and knowledge of these credits in the international markets.
About Eddie Listorti
Eddie Listorti is the Founding Partner and CEO of Viridios Group. He has a proven track record with 30 years in business and banking. His experience includes managing teams of over 2,000 people and annual revenues exceeding AUD 2 billion. Mr Listorti has held board positions in industry bodies and joint venture partnerships.