Renewables and Energy Technology

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Is AGL required to purchase carbon offsets through legislation arisen from the Kyoto Protocol?


Hi all,


I would like to know if there are any international, federal or state laws that require AGL to purchase carbon offsets? Specifically in regards to the Future Forests scheme and arisen from our obligations to the Kyoto Protocol?


I understand australian land holders can use a national policy known as carbon farming inititives (CFI's) as a way of acquiring a tradable carbon credit otherwise known as Australian Carbon Credit Units (ACCU's). And these ACCU's can be sold to companies such as AGL as a means of offsetting their carbon emmissions.


Further, in line with what is required under the Kyoto Protocol australia must make meaningful measures to reduce our carbon emmissions by 5% of 2005 levels(or something like that). I am just trying to find the practical & legal link between AGL and actually buying carbon credits like Future Forests scheme which i have just signed up for.


Thank you 🙂



Retired AGL Moderator

Hey @Liam. Welcome to the Community, and thank you for signing on to the AGL Future Forests initiative!

Future Forests is a wholly voluntary program, initiated by AGL on the back of consumer research indicating that many Australians are looking for ways to play their part but are often unsure how to do so.


In regards to your specific questions - at present there is no obligation for AGL to purchase carbon offsets. You are correct that ACCU’s can be utilised for programs such as Future Forests (our initial purchase was for Gold Standard carbon credits) or other voluntary mechanisms – or they can be purchased by the Federal Government to count towards their obligations under the Kyoto Protocol.


The Kyoto target is 5% reduction on 2000 levels by 2020. Australia has then agreed to a further target of 26-28% reduction (on 2005 levels) by 2030 under the Paris Agreement. There are currently negotiations and policy developments on how the Federal Government (who is responsible for meeting these targets) will implement policies, programs or legislation to ensure we meet this commitment such as the current Emission Reduction Fund and Safeguard Mechanism. The Paris agreement will be the international mechanism that replaces the Kyoto Protocol post 2020.


Let us know if you have any more questions on this, we'll be happy to help.

If I've helped you in any way, feel free to give me a Like!