Australia is partnering with neighbouring countries in the Indo-Pacific to reduce emissions.
The Australian Government is contributing to the creation of a carbon market for offset trading in our region. Carbon markets are trading systems where carbon credits are sold and bought. One tradable carbon credit generally equals one tonne of carbon dioxide. Carbon markets allow governments and businesses to invest in projects that reduce or avoid emissions or store carbon. The projects generate carbon credits for every tonne of carbon dioxide equivalent stored or avoided.
Indo-Pacific Carbon Offsets Scheme
The Indo-Pacific Carbon Offsets Scheme represents a long-term commitment to climate action in the region. The scheme has around $100 million in funding and will run for 10 years until 2031.
The scheme will help partner countries create and trade credible and robust carbon offsets under the rules of the Paris Agreement.
Our first partners in IPCOS, announced at COP26, are Fiji and Papua New Guinea.
We will support our partner countries to develop:
- national climate policy frameworks
- carbon accounting and reporting capacity
- a pipeline of carbon offsetting projects.
The scheme aims to:
- boost public and private investment in practical climate action
- provide environmental, climate adaptation and livelihood benefits for communities
- create opportunities for Australian businesses to offset their emissions
- strengthen partner countries’ role in setting global standards.
Designing the scheme
We’re co-designing the scheme with:
- our partner countries
- the private and not-for-profit sectors
- carbon market and accounting experts.
This includes consulting stakeholders on the principles guiding the scheme design. The high-level scheme design principles are:
- transparent and inclusive governance
- alignment with the Paris Agreement and United Nations Sustainable Development Goals
- responsibility and cooperation among parties
- high-integrity units.
The principles will ensure the scheme and its projects meet standards that protect the environment and communities.
Our department’s role
We will manage the scheme. We are working closely with the Clean Energy Regulator and the Department of Foreign Affairs and Trade.
International blue carbon resources
Access the blue carbon technical advice manual and policy training course, which help countries reduce emissions, on the International Partnership for Blue Carbon website.
- Find out how Australia is meeting its international climate change commitments
- Read more about our work to support climate action in developing countries
- Learn about our emissions reduction strategies