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Supporting climate action in the Indo-Pacific region

Australia is partnering with neighbouring countries in the Indo-Pacific to reduce emissions.

The Australian Government is developing a carbon market for offset trading in our region.

A carbon market lets governments, businesses and individuals offset their emissions by investing in emissions reduction, avoidance or sequestration projects. The projects generate carbon offsets for every tonne of carbon dioxide equivalent stored or avoided.

The Indo-Pacific Carbon Offsets Scheme is a $104 million, long-term commitment to climate action in the region. It will run for 10 years until 2031.

Developing a regional carbon market

The scheme will help partner countries generate and trade high-integrity carbon offsets under the Paris Agreement.

We will support our partner countries to establish:

  • national climate policy frameworks
  • carbon accounting and reporting capacity
  • a pipeline of carbon offsetting projects.

The scheme aims to:

  • boost public and private investment in climate action
  • provide environmental, climate adaptation and livelihood benefits for communities
  • create opportunities for Australian businesses to offset their emissions
  • strengthen partner countries’ role in setting global standards.

Designing the scheme

We’re co-designing the scheme with:

  • partner countries
  • the private and not-for-profit sectors
  • carbon market and accounting experts.

This includes consulting stakeholders on the principles guiding the scheme design. The high-level scheme design principles are: 

  • transparent and inclusive governance
  • aligned with the Paris Agreement and United Nations Sustainable Development Goals
  • responsibility and cooperation amongst parties
  • high-integrity units.

The principles will ensure that the scheme generates carbon offsets that meet environmental and social integrity standards.

Our department’s role

We will manage the scheme with support from the Clean Energy Regulator.

We’re also working with other departments to develop and implement the scheme:

  • Department of Prime Minister and Cabinet
  • Department of Foreign Affairs and Trade
  • Department of Agriculture, Water and the Environment.

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Last updated: 5 November 2021

Content ID: 70520