Why Carbon Credits are Important

Carbon credits generate investment into Australia’s native forests, creating reliable income to support ongoing forest protection.  Revenue generated from ACCUs for the purpose of preserving Australia’s native forests can create jobs in forest management for regional communities. This incentivises industries to protect native forests for the purpose of carbon sequestration which will have more market value than for industries which seek to degrade native forests.

‘High integrity,’ well designed credits and carbon markets serve several key functions in reducing emissions. 

Firstly, they provide a cost-effective way for businesses to reduce emissions while they invest in onsite emissions reductions and innovative technology. 

Secondly, as emissions targets increase, this drives demand for credits and driving business to reduce emissions directly. Thirdly, they help deliver net zero emissions across the economy.

At a minimum, Australian Carbon Credit Units (ACCUs) must represent one metric tonne of carbon abatement and must be real, additional and permanent. They must represent an actual reduction in emissions or sequestration that would not have otherwise occurred. 

Why Forests are Important in Reducing Carbon Emissions

Forests sequester carbon by storing emissions through photosynthesis in trees, smaller plants and the soil in which they grow. As trees age, carbon is stored in trunks, branches, foliage and the expansion of roots in the soil.

At a large scale, forests operate as significant carbon sinks that can store mass amounts of emissions. Conversely, the destruction and degradation of native forests through tree clearing (by logging for timber production or land clearing to make way for grazing) removes or significantly reduces the amount of tree cover diminishing their ability to store mass amounts of carbon.

When a tree in a native forest is cut down, two things happen: first, the tree releases its stored carbon as the tree fiber decomposes or is used (mostly as wood chips and firewood – rarely as long-lived wood products). Secondly, that tree can no longer continue to grow and sequester carbon as it ages. 

Protecting our native forests has never been so important, that’s why we are calling on the Australian Government to make a plan that fixes the problems in our forests and meets the needs of our regional communities, workers, home builders, and the millions of Australians who want to see our environment looked after.