Supporting integrity and climate action ambition – TEM’s response to Climate Active program participation

At Tasman Environmental Markets (TEM), we are committed to advancing integrity, ambition and tangible impact in corporate climate action.

TEM is highly supportive of Climate Active reforms that strengthen ambition and integrity, in late 2023, we submitted our response to the Climate Active proposed changes. Since then, both TEM and our clients have sought greater clarity on the program’s future – a sentiment echoed across the industry, particularly in recent weeks. As reform discussions continue, we remain hopeful that Climate Active will evolve to reflect global best practice in voluntary climate action.

We acknowledge and align with recent sentiments expressed by industry peers, including GreenCollar and Climate Friendly, following GreenCollar’s symbolic departure from the Climate Active program.

The program, while no longer in lockstep with global best practice climate action in its current form, still catalyzes more, not less, climate action. As a government administrated program for corporate emissions not covered by compliance mechanisms, the program has an important role to play in decarbonising the Australian economy and meeting Australia’s national emission reduction targets under the Paris Agreement by effectively putting a price on carbon emissions for participants.

To achieve this, changes to the program must focus on aligning with scientific guidance, improving transparency, and supporting a broader range of credible climate solutions. If we penalise businesses for using voluntary climate finance as part of a science-aligned transition, everyone loses.

“It’s easy to focus on the flaws in detail, but if we return to first principles, it’s clear we can’t meet the Paris Agreement goals without a well-designed market mechanism,” said Michaela Morris, CEO, TEM.

“Markets are driving investments in climate solutions (both removals and reductions) and enable an efficient allocation of capital – delivering more climate action for the same amount of investment.”

“We welcome a constructive debate about the scientific rigor of the methods, the integrity of carbon projects and their outcomes, and how companies can best engage in carbon markets. What we find counterproductive is that the discourse has become unnecessarily inflammatory and binary. There is simply no empirical evidence to support the notion that using carbon credits leads to less climate action. Much of the criticism relies on logical fallacies, cherry picking, anecdotal evidence, red herrings – techniques not unlike those used by climate change deniers. Pitting carbon projects against operational reductions distracts from the overall goal of driving meaningful climate action.” Morris explains.

The Carbon Market Institute (CMI) has also called for accelerated reforms to the Climate Active program, urging a shift from carbon neutrality towards alignment with net zero emission reduction goals. CMI emphasises that reforming – rather than repealing – the scheme is essential to address greenwashing concerns and to fully realise the program’s potential.

TEM remains a Climate Active certified organisation and is closely monitoring developments in the hope of meaningful reform that enables businesses to take credible, science-aligned action on climate change.

“Studies show that companies engaging with voluntary carbon markets are nearly twice as likely to reduce their emissions year-on-year. It is not carbon credits holding businesses back – it’s the lack of ambition. We must raise the bar, not remove the tools,” said Morris.

“We believe carbon markets are a critical mechanism for enabling corporate climate finance and accelerating real-world climate and community outcomes, many of them in rural communities and for Traditional Owners.”

Through carbon markets, we also unlock significant co-benefits, particularly through high integrity carbon projects such as the Arnhem Land Fire Abatement (ALFA) savanna burning projects in the Northern Territory Australia.

In 2023 alone, ALFA’s savanna burning program abated over 520,000 tonnes of CO₂-e and supported employment for more than 400 Indigenous rangers and community members across six Aboriginal-owned project areas. This work not only delivers measurable climate outcomes but also supports biodiversity, reduces the risk of catastrophic wildfires, and reinforces cultural land stewardship.

“Savanna fire management is more than just reducing emissions; in Arnhem Land it’s about empowering Indigenous communities to lead in climate solutions, whilst supporting on-country livelihoods and strengthening cultural practices,” said Dr Jennifer Ansell, CEO of ALFA.

As Dr Otto Bulmaniya Campion explains:

“We always think about the old people, they taught us and told us “Get that fire right!” and now we are leading these projects not only for carbon but because we want to reconnect family back on country so that we can walk and get healing in the way the old people used to do. Today, through our partners working together, we are getting people back on country – it’s a good indicator for us. We can see plants and animals coming back but also, we can see employment growing and the numbers of people building up on country,” Dr Otto Bulmaniya Campion, Director ALFA.

As the voluntary carbon market continues to mature globally, TEM remains focused on delivering measurable impact through high-quality carbon projects, strategic advisory and strong partnerships – helping organisations navigate the path to net zero with confidence and integrity.

Photography by David Hancock.