Kyoto Carry-over Credits (NDC)

Policy Engagement Overview

• Of all the climate lobbying tracked between 2019-2020, around half corresponded to advocacy in favor of the use of Kyoto-carry-over credits, which would weaken the government’s ambition for 2030 emissions reductions
• This advocacy was led primarily by industry associations, including Australian Industry Greenhouse Network and Minerals Council of Australia
• Overall, there has been more lobbying in favor of not using the Kyoto credits, including from Origin Energy.
• In 2019, BHP and Business Council of Australia both advocated for the use of Kyoto carry-over credits but appeared to change their policy position in 2020 and have since lobbied against their use.

In September 2023, the government permanently cancelled its Kyoto ‘carryover’ credits. This cancellation means that no future government can use these credits to meet the countries’ climate targets

Impacts on Policy Ambition

From 2015 to 2020, the Australian Government consistently supported the use of Kyoto credits to meet its 2030 federal emission reduction target of 26 to 28 per cent under the Paris Agreement. In December 2020, Australia appeared to soften in its support for the use of Kyoto credits, after Prime Minister Scott Morrison stated that he was “very confident” that Australia would not need to use Kyoto carry-over credits to meet its 2030 emissions targets. However, Australia's emissions projections are based on its Technology Investment Roadmap, which relies heavily on the scale-up of low-emission technologies. Australia has not definitively ruled out the use of Kyoto carry-over credits.