Environment and Climate Change Minister Gavin Jennings said the on-line guide, now lists 50 providers, up from 36 in March, with 42 of these providers able to provide certified offsets.

“The Guide, developed by Global Sustainability at Royal Melbourne Institute of Technology (RMIT) in partnership with the Environment Protection Authority (EPA), helps purchasers to compare offset providers and learn how the carbon market works,” Mr Jennings said.

“The number of renewable energy providers listed in the Guide continues to grow with a 42 per cent increase over the past three months and a 35 per cent increase in forestry providers.”

The carbon offset industry is likely to continue to grow but will change significantly in the lead up to the introduction of the Carbon Pollution Reduction Scheme (CPRS). A carbon offset allows a company or individual to compensate for their greenhouse gas emissions by investing in a project or activity that reduces or stores greenhouse gases.

The Scheme’s Green Paper canvasses the potential for international linkages following the initial establishment phase, and the local carbon offset industry is preparing for this. The Guide has identified 41 per cent more providers offering carbon offsets from overseas.  All of these are in a position to sell certified offsets.

Certification is important because it means the offset product or service being offered is verified by a third party.

The accreditation schemes include the Commonwealth’s Greenhouse Friendly scheme, the Voluntary Carbon Standard and the Gold Standard. Each offers different levels of quality assurance and consumers need to be educated about these programs so that they can be assured that their purchase will result in real and sustainable reduction in emissions.

“The Brumby Government has taken a leadership role in preparing for the CPRS. Independent tools such as the Guide will help business understand the carbon market and will help Victoria contribute constructively to an emissions trading scheme.”

Third party verification was a key issue identified by the Australian Competition and Consumer Commission (ACCC) in its recent guidance to business on carbon claims. 

EPA director sustainable development Terry A’Hearn said offset companies were responding to the increased oversight provided by the ACCC and scrutiny from websites such as the guide. 

“Since Global Sustainability’s initial research was conducted in May 2007, the proportion of providers selling certified offsets has increased from 69 per cent to 84 per cent,” Mr A’Hearn said.

Global Sustainability Director at RMIT Caroline Bayliss said part of the growth of the carbon offsets market was due to the increasing number of traders or brokers entering the sector.

“We have seen a 46 per cent increase in the number of brokers in the carbon offsets market over the past three months which appears to show the market is responding to increased consumer awareness and demand,” Ms Bayliss said.

Global Sustainability at RMIT and EPA launched the Guide as a resource for businesses, government agencies, non-Government organisations and individuals seeking information about offsets.

The Directory is at www.carbonoffsetguide.com.au