Controversial Coalition appointment resigns from board overseeing carbon credit scheme labeled 'mistake'

The sudden and major reshuffle of the committee that oversees Australia’s emission reductions has led to the departure of three members, including the chair of the committee, paving the way for Labor to re-form the pivotal committee.

Key points:

• Three Coalition appointments to ERAC have been withdrawn
• The ABC has confirmed two of the three asked to resign
• ERAC determines which activities are considered a legitimate way to generate carbon credits

A government spokesman has confirmed three members of the Clean Energy Regulatory (ERAC) Emissions Reduction Assurance Committee (ERAC) – all controversially appointed by the Coalition – have resigned.

The revelations follow a series of ABC reports exposing allegations that valuable carbon credits were being given to businesses for emission reductions that never happened, as well as former committee chairman Andrew Macintosh blowing the whistle on what he called a “mistake”.

Economist Brian Fisher, former mining lobbyist David Byers, and cement industry lobbyist Margie Thomson have all resigned from their positions at ERAC.

Mr Byers is chairman of the committee, with his departure leaving the position vacant.

The ABC can confirm that Mr Byers and Dr Fisher were asked to step down from the committee this week.

“The secretary can confirm that he has accepted and accepted the resignations of three of the ERAC members,” a spokesman for the Minister of Climate Change and Energy Chris Bowen said Thursday.

“The minister hopes to appoint new committee members in due course.”

What is ERAC and who does the Coalition appoint?

ERAC determines which activities are considered a legitimate way to generate carbon credits.

The credits are then purchased by the government through reverse auctions or sold on the private market.

After Labor wins the election, Bowen commissions a review of how carbon credits are issued, and is expected to report on the matter sometime later in the year.

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Questions asked about the integrity of carbon offset schemes.(ABC: 7:30/Stephen Long )

Dr Fisher was closely linked to the Coalition after he produced the modeling that the then government relied on to argue that Labor’s 2019 climate policy would make a “wrecking ball” through the economy.

He has also worked for several fossil fuel companies as well as the mining lobby group Mineral Council of Australia.

Mr Byers was appointed to lead ERAC by former emissions reduction minister Angus Taylor in 2021.

He is a former senior executive on the Australian Minerals Council, BHP and the Australian Petroleum Production and Exploration Association.

Thomson is another Coalition designation, and works for the top cement industry body, the Cement Industry Federation.

Former mining lobbyist David Byers was appointed chairman of ERAC last year.(ABC News: Chris Le Page)

Ms Thomson and Mr Byers have been accused of conflict of interest, which the Australia Institute argues makes their position untenable – a charge they deny.

A potential conflict of interest means that in some cases Mr Byers and Ms Thomson step aside from certain discussions.

At the time, Byers said he was “satisfied that any potential conflicts were then appropriately managed by ERAC”.

Thomson told the ABC that the only reason he resigned was to spend more time caring for his elderly parents.

“I see everything that’s going on politically and I have very important things in my personal life and I have to get rid of things that take up a lot of time,” he said.

‘Step to trust’

Some of the money spent by the Emissions Reduction Fund is used for “avoidable deforestation”, which is intended to pay landowners not to proceed with planned land clearing.

But analysis by The Australia Institute last year found that the fund had paid for so much of the “avoided” land clearing that it was largely impossible.

“It’s hard to think that there are enough bulldozers in New South Wales to follow up on the increasing land clearing rates that are behind this methodology,” said Richie Merzian of the Australian Institute at the time.

Professor Macintosh earlier this year told the ABC that “about 70 to 80 percent of the credits that have been issued are of very low integrity”.

“Payments are being made to people not to cut down forests that will never be logged, to plant forests that already exist, to plant forests in places that will never maintain permanent forests,” he said.

Professor Macintosh’s allegations were refuted by CER, which produced a model it said supported his method.

Polly Hemming of The Australia Institute said: “It is not clear how the appointment of individuals with clear industry interests can be made without regard to the law.”

“We hope this is a step towards restoring trust and credibility in the governance of Australia’s carbon credit system.”

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