Australian human-induced native forest regeneration carbon offset projects have limited impact on changes in woody vegetation cover and carbon removals

Abstract

Carbon offsets are a widely used climate policy instrument that can reduce mitigation costs and generate important environmental and social co-benefits. However, they can increase emissions if they lack integrity. We analysed the performance of one of the world’s largest nature-based offset types: human-induced regeneration projects under Australia’s carbon offset scheme. The projects are supposed to involve the human-induced regeneration of permanent even-aged native forests through changes in land management. We analysed 182 projects and found limited evidence of regeneration in credited areas. Changes in woody vegetation cover within the areas that have been credited also largely mirror changes in adjacent comparison areas, outside the projects, suggesting the observable changes are predominantly attributable to factors other than the project activities. The results add to the growing literature highlighting the practical limitations of offsets and the potential for offset schemes to credit abatement that is non-existent, non-additional and potentially impermanent.