Design Principles to Guide the Indo-Pacific Carbon Offsets Program
The Indo-Pacific Carbon Offsets Scheme has taken another step forward by developing 4 preliminary design principles.
The program is an Australian government strategy to support climate action in the Indo-Pacific. Australia will partner with countries in the region to develop a carbon market that supports emissions reduction projects.
We design the program with partner countries, private and non-profit sectors and industry stakeholders.
Draft scheme design principles
On October 19, the Carbon Market Institute hosted the first co-design workshop for the device. Stakeholder feedback helped us develop the following draft principles to guide program design. The principles will be refined as we continue to consult with our partners.
Transparent and inclusive governance
- The Indo-Pacific Carbon Offsets Scheme is a partnership agreement between the private and non-profit sectors, the Australian government and the Indo-Pacific countries hosting projects.
- Governance arrangements should give a voice to the peoples and communities affected by the projects and provide market assurance while respecting the sovereignty of the countries and recognizing the circumstances of the host countries of the projects.
Aligned with the Paris Agreement and the Sustainable Development Goals
- The Indo-Pacific carbon offsets program will align with Article 6 of the Paris Agreement, including the application of sound accounting to avoid double counting. Projects should strive to offer co-benefits that contribute to sustainable development goals.
Responsibility and cooperation between the parties
- Partners should support and cooperate with each other through the design of the Indo-Pacific carbon offset program. A partner generally responsible for a sector or activity in a project host country should also have the corresponding responsibility under the Indo-Pacific Carbon Offsets program. Partners have a responsibility to actively participate and engage constructively. The design of the program will create opportunities for participation.
- Where possible, the use of existing public and private infrastructure, frameworks and policies should be used to optimize engagement and use of existing knowledge, experiences, information and data.
High integrity units
- The program design should recognize the importance of environmental integrity, social and environmental safeguards, and participatory and equitable community benefit-sharing arrangements, for the successful implementation of emission reduction projects in the region.
- The reduction will be actual, measured, reported and independently verified, without advanced or retroactive credit. The declaration of the reduction must be precise, prudent and timely.
- The reduction should be permanent with risk assessments and treatments, such as reversal reservations and requirements, permanence guarantees after crediting periods, and notification of reversals.
- The projects must not already be required by law and must be complementary. Leaks should be assessed and addressed, monitored and deductions made where appropriate. Indo-Pacific Carbon Offset Program units are issued only once and are not sold simultaneously to multiple parties (i.e. no fraudulent creations or transactions) with realistic project credentials and credible that are conservative, updated over time, and nested within nationally determined contributions.