A UN taskforce has released a report aimed at reducing greenwashing and improving the reliability of corporate net-zero pledges and climate commitments.
The federal carbon-neutral certification scheme needs an overhaul, and voluntary purchases of international units by businesses could lead to stronger national emissions pledges, according to the Climate Change Authority.
An ASX-listed resources company that last month signed an offsets agreement with Santos is planning legal action after having its forest carbon concessions cancelled by the PNG government.
Australia's largest buyer of offsets is developing a mangrove restoration carbon project in Papua New Guinea, and says it shows the huge potential of a regional offsets scheme.
The Business Council has called for a separate review of the treatment of voluntary carbon offset purchases, in its submission to a Climate Change Authority inquiry.
The Glasgow climate talks have ended with global agreement on important carbon market rules, but governments and businesses are likely to tread warily on one aspect.