Concern over Australia's net zero targets is rising among climate experts and environmental groups following the release of the Chubb Review report and the federal government's draft Safeguard Mechanism reforms.
Scientific advice commissioned by the Chubb Review proposes tighter constraints on new ERF vegetation regeneration projects, as well as landfill gas projects.
The Clean Energy Regulator has dropped its usual practice of holding two ERF auctions each year, and will instead hold the next auction in March 2023, after the completion of the Chubb review.
GreenCollar, the nation's largest environmental markets investor, and university researchers including Professor Andrew Macintosh, have jointly told the Chubb review they have shared concerns about Australia's carbon credits regime.
Just eight facilities account for half the emissions headroom that currently exists under the Safeguard Mechanism, according to a new analysis by Market Advisory Group.
An ERF policy change and unspent money in the Climate Solutions Fund mean Prime Minister Scott Morrison has at least $3 billion to redistribute to a range of climate change measures.
The government could unlock the creation of an extra 2.5 billion carbon credits over the next decade, by introducing a new ERF method, according to the Carbon Market Institute.