Group of councils leads sector in generating credits for emissions trading
A group of seven metropolitan Perth councils is believed to be the only local government body in Australia to trade greenhouse gas abatement credits under a voluntary Federal Government carbon emissions trading scheme.
The Southern Metropolitan Regional Council became a verified provider of greenhouse gas abatement credits under the Federal Government’s voluntary ‘Greenhouse Friendly’ program about three years ago.
A spokesperson for the SMRC says he thinks the council is the only local government in Australia to generate credits under the program. However, he says the SMRC’s actions could provide an example for other local governments wishing to generate and sell carbon dioxide abatement credits.
The credits sold by the SMRC each equal one tonne of carbon dioxide equivalent emissions. The regional council generates its credits from the greenhouse gases it has prevented from entering the atmosphere at its waste composting facility.
The SMRC recently put 57,000 verified abatement credits to tender for purchase by companies, organisations and individuals wishing to offset their carbon emissions or become carbon neutral in their operations. It is the third round of tenders for abatement credits that has been offered by the council.
While the SMRC is not able to reveal the price of the carbon credits due to commercial confidentiality, the council has revealed the highest bids for the credits increased from last year.
SMRC Chairman, Cr Doug Thompson, says the market for carbon credits in Australia is increasing rapidly, and the SMRC attracted “strong tenders” for its latest allocation.
The money generated from the sale of abatement credits is used by the SMRC to generate an income stream and help offset the costs of running the waste facility.
It is not known at this stage how the Commonwealth Government’s planned mandatory Carbon Pollution Reduction Scheme will impact upon the regional council’s ability to generate carbon credits or the waste facility operated by the SMRC. For more information, contact the Southern Metropolitan Regional Council on (08) 9329 2700.
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