Labor could offload millions worth of carbon credits to big polluters

The Albanese government could be planning to offload millions of dollars’ worth of its own carbon credits to big polluters as the Greens’ extraordinary broadside threatens to derail Labor’s key climate policy, climate analysts have said.

The draft safeguard mechanism legislation, which will almost certainly need the support of all 12 Greens senators to pass, outlines Labor reforms to a Morrison-era policy that would require the 215 big emitters to keep their emissions below 5% a year, or face a hefty fine.

But the Greens have taken issue with a caveat that allows businesses to purchase an infinite amount of Australian carbon credit units (ACCUs) to offset their emissions, which could mean business as usual for the dirtiest corporations in Australia.