Not-for-profit advocacy group Climate Integrity claims a new carbon credit platform, Aetium, appears to be misleading consumers about the environmental benefits of its carbon credit scheme.
Climate Integrity has filed a complaint to consumer watchdog the Australian Competition and Consumer Commission (ACCC) outlining how the company may have breached Australian Consumer Law by allegedly engaging in misleading and deceptive conduct.
Aetium uses an online platform to issue carbon credits to consumers for using solar panels and electric vehicles (EVs) they already own, with the prospect of payment. The platform offers carbon credits to buyers, such as individuals and businesses who want to ‘offset’ their emissions.
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The company claims that buyers of the carbon credits listed on its “Exchange” are “supporting a project that actively avoids or removes CO2”, “supporting CO2 reductions that cancel out your CO2 footprint” and that the credits “accurately represent genuine CO2 reductions”.
However, according to Climate Integrity, the carbon credits issued by Aetium are not validated by any third-party certifier of voluntary carbon offsets or independent standards regime, nor are they certified by any government-operated crediting scheme.
Climate Integrity says its analysis of Aetium’s business raises serious concerns about these claims, particularly that the platform claims its credits represent genuine C02 reductions when they do not meet the standard for additionality.
Climate Integrity executive director Claire Snyder said, “An additionality test is a critical integrity safeguard in all major carbon credit standards, it assesses whether a project genuinely creates ‘additional’ emissions reductions, beyond ‘business as usual’ and which would not have occurred in the absence of the incentive.
“Aetium’s credits fail to meet an additionality test because consumers signing up to the scheme would have bought and used their EVs or solar panels whether Aetium existed or not.”
In addition to its ACCC complaint, Climate Integrity has also filed a complaint to Ad Standards, stating that Aetium’s claims may be in breach of the Environmental Claims Code administered by the Australian Association of National Advertisers.
Aetium has released a statement regarding the claims, with managing director Christophe Ride addressing Climate Integrity’s concerns about ‘additionality’ rules.
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“The registered charity, Climate Integrity, does not dispute that actions such as installing solar, driving electric vehicles, or protecting forests reduce net CO2 emissions. Their position is that current ‘additionality’ rules do not allow these smaller, voluntary projects to be formally recognised,” he said.
“That is precisely Aetium’s point: voluntary actions that materially reduce CO2 emissions should be recognised, encouraged, and supported.”
Read the full statement here.
