A new working paper released today has found the Federal Parliament should disallow a controversial new method for making carbon credits. The paper, by University College London Associate Professor Fergus Green, examines the New South Wales Government's proposal to sell carbon credits in return for creating the Great Koala National Park.
Wed 12 Aug 2026 10.29 AEST
Photo: AAP Image/David Wigley
A new working paper released today has found the Federal Parliament should disallow a controversial new method for making carbon credits.
The paper, by University College London Associate Professor Fergus Green, examines the New South Wales Government’s proposal to sell carbon credits in return for creating the Great Koala National Park.
The koala habitat has been a promised by NSW Labor for a decade.
The proposal comes as the Senate prepares to consider a disallowance motion against the “Improved Native Forest Management” (INFM) method on August 18. The motion was put forward by the Nationals.
“If the INFM Method is allowed to stand, the GKNP will be registered as an offsets project, and it will generate carbon credits that industrial polluters can buy to comply with the Safeguard Mechanism, instead of reducing their own onsite emissions,” the paper reports.
“For example, BHP recently abandoned plans to replace a fleet of diesel trucks with electric trucks as it was cheaper to instead buy offsets like those that will be generated under the INFM method.”
The paper was released amid new polling which found that voters overwhelmingly believe governments have an obligation to protect koala habitats, regardless of whether carbon credits involved.
The results show 82 per cent of Australians believe governments have an obligation to protect koala habitats, while only three per cent said governments have that obligation only if they are paid to do so.
This includes 77 per cent of Liberal voters and 73 per cent of One Nation voters.
Louise Morris, Head of Fossil Fuel Transition at The Australia Institute, said the proposal risked taking existing problems with Australia’s carbon offset system “from bad to worse”.
“Australia’s carbon offset system is already plagued with integrity problems, and this method takes it from bad to worse,” Ms Morris said.
“NSW Labor has promised a koala national park for over a decade, and now, at the last minute, Premier Minns says he won’t protect koalas unless he gets paid by polluters to do it.
“The key scam of carbon credits is to get paid to do something you were going to do anyway – protect ancient forests you already said you would protect, buy more efficient machines that you already needed to buy.
“This is the NSW government getting in on the scam – get paid for the park that you’ve already promised and budgeted for.”
Ms Morris pointed out approving the method would set a dangerous precedent.
“If NSW is paid for a park it was already creating, then every other state government will want to be paid to protect its forests, or indeed to take any other climate action,” she said.
“The polling results show that the public sees through this. They want koala habitat protected, just like they voted for.”
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A statement by Bob Debus, Chair of Wilderness Australia (formerly the Colong Foundation for Wilderness), on the new carbon offset method called the Improved Native Forest Management (INFM) method that allows State Governments to earn carbon credit units under the ACCU Scheme.
The national eradication program has reached a major milestone. After years spent chasing the growing edges of the infestation, eradication teams are now moving into the core of the invasion. This marks the turning point and means the strategy is working.
