PERTH (miningweekly.com) - Australia and Papua New Guinea (PNG) will join forces to create an efficient and accessible carbon market under the Australian government’s Indo-Pacific Carbon Offsets Scheme. 

Following talks at COP26 in Glasgow with PNG Minister for the Environment, Conservation and Climate Change Wera Mori, Minister for Industry, Energy and Emissions Reduction Angus Taylor announced PNG would be the second international partner to join the scheme, after Fiji.

Taylor said the partnership would see both countries share expertise to ensure PNG is internationally recognised as a source of high-integrity offsets.  

“We look forward to working with PNG, Fiji and other members of our Pacific family and regional partners to share our expertise and drive investment in low emissions technologies,” Taylor said. 

“Australia is the gold standard when it comes to transparency and accountability in emissions reporting, and we expect all major economies to be held to the same high standard.  

“That’s why we’re working with countries in our region to build the capability of their emissions reporting. 

“Our plan to get to net-zero emissions by 2050 recognises there is a role for voluntary purchases of high integrity credits from our region. We are now putting in place the building blocks to enable that to occur. 

“The scheme will also help Australia’s private sector meet its emissions reduction targets by enabling investment in credible projects in the region that demonstrate high environmental integrity.” 

Minister for International Development and the Pacific Zed Seselja said the agreement was another example of Australia partnering with the Pacific on emissions reduction.

"Australia proudly partners with the Pacific to ensure nations in our region are able to achieve their emissions reduction and climate resilience goals,” Seselja said. 

“Over 70% of our total climate finance goes to adaptation and resilience building in Small Island Developing States and Least Developed Countries, with the Pacific our key focus.”

The government has committed A$104-million to developing a high-integrity Indo-Pacific Carbon Offsets Scheme. Under the scheme, Australia will share technical expertise in carbon accounting with countries in our region to enable them to meet new Paris Agreement emissions reporting obligations.  

The scheme will deliver renewable energy and nature-based solutions projects to support neighbouring countries to reduce emissions and grow their economies.